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Clover share price

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penny2pound
New Contributor
Why is the Clover share price so low? I believe the stock is really undervalued, and is still being held down by "reckless" IPO profit taking. Even though the stock may be overbought, there is no need to sell short. Perhaps Clover should bring out some positive investor news, and encourage its shareholders to maintain their stock.
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12 REPLIES 12
babz
Contributor
how many shares you own?
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CHATTYCHAT
Super Contributor
Louis Botha CFO sold some in December, no others reported. Market discounted negative expectations, against the optimism from Clover.
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grommet
Regular Contributor
if that is what you believe , but the market do not agree
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SimonPB
Valued Contributor
reckless IPO profit taking ?? what's reckless about profit ?? but of more concern is that you're suggesting Clover management should manipulate the share price but 'finding' some positive news to prop up the share price ?? nah boet, management must put their head down and manage the company, the price will repsond to that ..
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WES
Super Contributor
Its selling dairy products. What makes you think it is, or will become a great share in the future ? Think about the competition in this market. Who is Clovers clients ? Clover cannot sell its products by itself,it has no retail network, it needs the Pick n Pay and the Shoprites, it dependant on them, they rule the price.
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penny2pound
New Contributor
Sure we are all here for profit, but the "reckless" part of it relates to the farmers ("pre-ipo" shareholders) and underwriters who constantly pin down the share at a lower price, undercutting potential growth by a large margin. You see them constantly coming in at the initial ipo price.
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SimonPB
Valued Contributor
and that is what makes a amrket .. diverging views ..
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Not applicable
and why did they list. What do they plan to do with the capital?
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SimonPB
Valued Contributor
upgrade equipment/plant/etc. if I recall correct ..
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Not applicable
OK, so they needed shareholder capital - to boost working capital requirements? Doesn't sound like a great investment to me?
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CHATTYCHAT
Super Contributor
Listing also assist the company to reward employees through an incentive scheme.
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penny2pound
New Contributor
Ya, I agree with you - they are using capital to move their operations to coastal areas and pay off bad debt. Also underwriters and pre-listing investors have a lot of shares to sell, therefore I change my opinion, perhaps the share is over valued (and subscribed) in current market.
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