Australian (ASX) Stock Market Forum

WBT - Weebit Nano

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Surely you are not suggesting the price sensitive insider news had been leaked illegally causing a 20% drop in share price? Weebitbaggy certainly denied it in their response to the ASX price query.

Further dilution of shareholder value, par for the course with these sort of narrative driven stonks.
 
stockbrokers Jefferies and Canaccord are underwriting a $45 million institutional placement. As well, there is a $10 million SPP not underwritten.

The raising is at $5.00 a share, a 9.7 per cent discount to the last close and a 30.2 per cent discount to the five-day VWAP.

hmmm

(DNH)
 
Anybody recognise a familiar name? At least he isn't the Chair.

1679543686360.png
 
LOL! I had forgotten that! Someone on Twitter pointed that out recently. As big a red flag as you can get when there is a Bart on the board.
I remember now that you can see the hand of Fred in a recent WeeBitBaggy prezzo, something along the lines of, "activities have been mainly technical in nature"

Also founder, Ariel Malik has form, having been involved in a conspiracy to commit the offence of market manipulation, avoiding arrest by disappearing overseas!

??????

Edit - Coincidentally, from the Totus Capital presentation I was just watching, one of their shorts. "Colourful board"!!

Fr4R2UYakAA-HLh.png
 
some extract from a broker's page

Weebit Nano has a brutal entry to the ASX 300

The semiconductor components developer’s share price has slid amid short-seller interest and questions over key contracts and valuations.



Jemima WhyteSenior reporter

Apr 2, 2023 – 5.21pm

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Share

The mood was upbeat on March 13, when Weebit Nano investors gathered in a crowded room on Sydney’s Phillip Street to hear the latest from the company’s chief executive.

Shares in the micro-cap seeking to produce semiconductor memory chips were on a tear. That day, the stock closed at $8.22, shy of the month’s recent $8.75 high, but well above the $3.25 it had been trading at in January.



Depending on who you talk to, Weebit Nano’s rapid value plunge is either the latest example of chatroom hype meeting institutional investors, the dangers of a leaky market, or short sellers at their worst. Jessica Shapiro

Despite the global rout in tech stocks, it seemed that Weebit Nano – an ASX-listed group with zero revenue – was the exception to the rule. Its market capitalisation raced past $1 billion.

Some investors at the briefing high-fived chief executive Coby Hanoch, according to a person who attended the briefing. Meanwhile, on HotCopper the company’s supporters were ecstatic. And another milestone was about to be reached: the company was to be added to the ASX 300 index on March 20.

But by the month’s end, however, shares had nearly halved.
 
Miner said:
... another milestone was about to be reached: the company was to be added to the ASX 300 index on March 20.
...But by the month’s end, however, shares had nearly halved.
Click to expand...

Depending on who you talk to, this rapid value plunge is either the latest example of chatroom hype meeting institutional investors, the dangers of a leaky market, or short sellers at their worst.

What’s impossible to dispute is that this stock has again reminded investors that recent inclusions to the ASX 300 often tend to underperform.

One explanation for that is the index inclusion forces index funds to buy the shares, which means stock is then available to be used to short the stock. That means the moment when stock hype coincides with greater investor scrutiny can virtually be given a date.

Hedge fund Totus Capital did the numbers on this for its latest investor presentation, noting that new ASX 300 inclusions on average have a 29 per cent share price fall over 12 months
Click to expand...
 
Its often been the case Dona Ferentes, excessive narrative speculation drives the price of a company up way past any reasonable intrinsic value (more than a few have no intrinsic value as is the case with WBT.) and therefore propels them into a new index. I suspect the consequential ability to short is part of the reason, also the increased number of analysts and researchers looking at the business probably exposes the lack of financial fundamentals.

I think it does beg the question of whether inclusion in an index purely based on market cap is actually a good thing, the distortions created by the passive participants in the market being forced to take positions regardless of lack of business quality seems to be problematic.
 
Independent director Fred Bart resigns effective immediately. WBT enters suspension in order to appoint another Aust resident director and comply with Corporations Act 2001 (Cth).

WBT sells down suddenly for the third time. This third selloff triggers my "cockroach" indicator. ?

wbt2.PNG
 
No better news for a company than hearing a Bart has exited as a director! I think you are correct though @peter2, cockroach is an apt description of this one!
 
Backing WBT to perform again this year and have picked it again in the yearly tipping competition . What a beast it has been having gained January-December every year for the last 4 maybe 5.
Been holding since before the 25-1 consolidation and loaded up around the lows and there’s nothing better than bagging every day when it’s on a run. Good things still to come for the next 3-4 years while they tick the boxes and move into mass production.
 
Weebit has been sold off early this year as we await news on progress. Shorters are having a field day and have pushed the total to 8.5% shorted and now 8th on the most shorted list.
Let them play while the company does its thing, ticking the boxes and moving forward. Price will look after it self and maybe an opportunity to top up may present
 
Just watched a new interview on Stocks Down Under. Coby was his usual confidant, grinning self, hardly able to contain himself. Some great insights to how they are travelling with a couple of bits I haven’t heard him speak about in the past. Would recommend anyone interested in WBT to have a listen. Appears to me they are going to set this on a path this year for success in years to come. You only need to look at RMBS and their income growth over the years since qualifying and share price appreciation to understand the possible growth ahead for WBT.
 
Listened to the investor briefing last week in Sydney. Very informative and confident the company is really setting up for the future. Personally think this is going to be a huge opportunity for anyone willing to hold long term. You will need a great deal of patience as they move into new fabs and await qualification for each process and start production. With tape out well advanced with DB Hitek it won’t be long before customers get on board.
Worth a listen and also the follow up interview with Marc Kennis/stocks down under. Very insightful
 
Not much to report this month. Tape out to DB Hitec continues. Has been a few months since it began so should hear about completion this quarter. Cash burn as expected fell of a cliff compared to the previous quarter due to milestone payments made to CEA Leti their research partners. Heavy spend means technology is progressing
 
Getting ugly today. Down almost 5% today. Holders losing faith ATM. Could be a great buying opportunity coming up if this continues. Waiting patiently for some news about technology transfer and fab sign ups.
Oh the semiconductor industry moves at snail’s pace. Probably just eofy sellers who can’t see the future. Famous last words 🤪
 

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