23-01-2014, 07:45 PM
(23-01-2014, 12:08 PM)ARC Wrote:(22-01-2014, 10:31 AM)valuehunter Wrote: Vicom has been quietly moving up and is now quoted at $5.53 / share. Simply awesome for early investors. I'm just wondering what could be causing the current rerating? Upcoming results? What other catalyst(s) on the horizon?
It could be for a myriad of reasons such as increased coverage by brokers (though it didn't really move that much post the initiation). Or maybe because it was touted as a good stock to buy at a recent investment conference held last weekend.
I doubt there are any meaningful fundamental catalysts for this stock. Except maybe a special dividend. Though I won't count on it as my base case assumption.
Realistically speaking, what we are seeing here is simply valuation expansion - where people are willing to pay more for the same earning stream. Which at some point will stop making sense, imo.
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Arc, just curious to find out what investment conference are you referring to?