Q: Your recent inclusion of the stock to the growth model tweaked my interest. The company was unknown to me. A q and a search showed that you have been positive on this company for a while. I checked out the charts. A two year chart shows a nice saucer and handle (consolidation) formation (though the handle a bit extended) through 2022 and mid 2023 and then the breakout. In July/August price jumps from, in round numbers, $27 to $37. October sees a 20% sell off but then there is a quick rebound back to the 37ish level (very positive). My question is, are you aware of any fundamental reason for the price increase in July/August? I have not been able, through my limited resources, to find one.
Thank you
Neil
Thank you
Neil
5i Research Answer:
TVK does not put out a lot of news releases. In fact, there was not a single word from the company from May 10 (2Q results) to Aug 11 (3Q sales). The results were good, but the company has no analysts and thus no estimates to 'beat'. The move was on not-huge volume, and likely relates to earnings, an improving market cap (which can attract attention) and the fact that its clients (energy companies) continue to be flush with cash. We can't point to a single specific reason here.