Q: Hello 5i
ZDC had taken a hit recently due to, I assume, the new share offering at $3.35.
Based on your experience how long do stocks typically languish in this situation before resuming their upward trajectory?
Thank you
Dave
ZDC had taken a hit recently due to, I assume, the new share offering at $3.35.
Based on your experience how long do stocks typically languish in this situation before resuming their upward trajectory?
Thank you
Dave
5i Research Answer:
The stock is near the issue price, and the issue was 'upsized' so this may have taken some of the incremental buying pressure off the market. But keep in mind the stock is up 566% in the past year. Some price consolidation is to be expected here. It can continue to do well, though, IF if can continue to execute as expected. It has new shareholders on board now who will continue to support it as long as things are going well. There is really no set timeframe here. Good news will push the stock higher, and vice versa on bad news. But following an issue we might expect consolidation for a month or so, in the absence of any material events.