Q: So, another question on Kraken Robotics.
Stock has shed over 35% of its value from recent high of $10.73 and now testing 200 day MA of $6.52. Do you still believe this continuing downtrend as a simple Consolidation process ? Would you be concerned and inclined to act, one way or the other, as a Portfolio Manager, with a full 4-5% position ?
It is ironic to witness the deterioration in momentum and Market Cap of Kraken, while , during the same period, Anduril ( Kraken's major customer ) just completed another round of $5 Bln financing, lifting its market valuation (private market) to $60 Billion.
What are we missing ?
Thank You
Stock has shed over 35% of its value from recent high of $10.73 and now testing 200 day MA of $6.52. Do you still believe this continuing downtrend as a simple Consolidation process ? Would you be concerned and inclined to act, one way or the other, as a Portfolio Manager, with a full 4-5% position ?
It is ironic to witness the deterioration in momentum and Market Cap of Kraken, while , during the same period, Anduril ( Kraken's major customer ) just completed another round of $5 Bln financing, lifting its market valuation (private market) to $60 Billion.
What are we missing ?
Thank You
5i Research Answer:
At times one needs to focus on a company and not the stock. In the past month, yes, PNG did report lower profit on higher costs and acquisition charges. But most of the other news in the past six weeks or so has been positive. New contracts, and MOUs, plus (as noted) good news from customers. So the question is what caused the decline? There could be dozens of reasons, but none can be proven. Maybe investors are anticipating the end of various wars and lower defense spending (doubtful). Maybe concern about upcoming earnings (maybe). Maybe there are acquisition difficulties (possible). But there have been no negative press releases so we can only go on fundamentals and what we know. Since what we know continues to be positive, so are we.