Q: Terravest stock seems to be getting its traction back, with a new 52 weeks high today, after a sustained period of drawdown, following the equity raise. Could you please help understand some reasons for investors' renewed interest, Also, do you expect this momentum to continue into earnings and thereafter?
Thank You
Thank You
5i Research Answer:
Valuation changes are not always easily explained. Theories can exist but without news can't be proven. Following the equity issue, Desjardins and National Bank initiated coverage. But there hasn't been real news. But the company has some new shareholders, who have made 12% in a couple of months and are likely still buying. Market cap is now a respectable $1.6B, which may be encouraging some new larger investors to look at it. The last quarter was good and it reports soon (no announced date). The raise improved the balance sheet, and it is a decently priced growth stock. In the past month there has also been a big shift from the mega cap companies to small and mid cap names.