Q: Hi team. When I asked you about VST in 2021 you thought it was a decent mini-cap. Things have not gone well since. The audit of the December 2022 financial statements indicated the company's ability to continue as a going concern was in question. The last few weeks the CEO has been buying shares almost daily and the share price has risen from 15 to 17 cents over the last two weeks. I am way down but it is only a small position. Run or hold?
5i Research Answer:
The stock, at least, is up 45% this year. Its assets include a hodge-podge of 25 companies, and the stock is trading WELL below its net asset value of its assets. But market cap is only $16M, and it is exceptionally hard for it to get any attention in the market. It had $6M cash at its last report. But with its tiny size and extreme risk, we think it is time to move on.