Do you view the stock's rise to current levels sustainable in near term, with 35% gain within a short span of 10 days, with no company specific news ? ( With volume 4X average )
Is the stock expensive now on Price/PE basis, considering its unique technological moat and expected growth over coming years ?
Would you recommend, we add to a 1% initial position ?
Thank You
We can't personalize answers, but we remain comfortable with the stock and would be fine holding it or buying it, with a view to manage position size based against its risk. We can't comment on personal position sizes. Like any small cap in transition, it is experience a momentum run on good news and good prospects, but also simply because it is bigger. At $1.8 billion market cap, new and larger investors can now buy enough to make it count. This is sometimes a very powerful driver as small caps transition into mid caps. At 145X earnings, no one can say it is cheap, though. But volume has picked up also, with a spike Tuesday. It is cashed up from its equity issue, and we would expect more contract announcements, likely by year end. EPS is expected to more than double next year. We still consider it one of the better smaller cap growth stocks in Canada.