So Liberty's stock price has dropped from C$ 0.97 in April when it went public, to C$ 0.22 today.
Terrible performance, right? The company must be useless and management is a disaster. That would be a fair conclusion looking at the price chart.
But brokers know that the company needs capital to build out its technology and Vancouver brokers are not known to provide capital to grow real businesses, they are in a for a quick buck, who cares what the business is. They make risk-free fees to raise capital from investors in PPs and have no qualms about driving down the share price of a company when the next financing in pending, so that it is easier to entice investors, so they can earn their fees.
That's what's happened here, I believe, and since they have gotten what they want, the share price (which is divorced from the fundamentals due to these intermediaries) is down to where they are happy to provide financing. Liberty has announced at brokered financing at C$ 0.23 to raise C$ 2.5 million, which should establish a floor here.
If the price were to drop a lot now, the brokers would struggle to convince investors to participate in the PP (if it was say C$ 0.16, an investor is better off buying in the market than through the PP). So I think the floor is in on the share price.
In my earlier posts, I have provided a detailed look at the fundamentals underlying Liberty's technology and the progress they have made in signing up blue-chip potential customers to test the technology at their sites. If you find the technology credible (MIT developed it) and you want exposure to AI enabled stocks and you believe that mass shootings and terrorism needs to be checked with a revolutionary technology and you want to buy it cheap, then at a $ 14 m market cap, with test sites including the Rogers Arena, Toronto;s Pearson airport and its convention center, and FIFA and MLB and so on, it is worth your while your own research to see if you see value here.
Remember, Laurentian Bank's is projecting a 12 month $ 1.40 price target.
To clarify: I am not providing investment advice, just providing information about Liberty. You are responsible for your own due diligence.
