CGY Trading Volume

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I really like the fundamental outlook for Calian Group but am a little concerned with how thinly traded this company is. The 50 day simple moving average of daily trading volume for the company (as at this morning) is only 20,858 shares.
Does this worry you about the potential for price manipulation?
As always, thank you for your work. Your comments would be very much appreciated before I pick up an entry position.

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Asked on December 16, 2020 8:38 am
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Private answer

Hey there.

We do mention liquidity as a concern in the report. Average volume is low and on some days it could pose a liquidity issue.

However, 20,858 shares at today's prices is still over $1.3 million changing hands daily, which should pose little liquidity risk for a retail investor looking to enter or exit a position.

In terms of price manipulation, there is a chance that a big order could increase volatility in either direction. But, if we look to the 5 year + history of this stock, I see no instances of manipulation. And, in terms of beta over the last 5 months, the stock has actually been less volatile than the overall markets.

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Posted by Dan Kent
Answered on December 16, 2020 9:43 am