Ava Risk Group (ASX: AVA) has been disappointing this year and someway defies belief because the company has made astonishing progress on all fronts. Most companies have struggled due to covid-19; many have cut or not paid a dividend because the strategy is to preserve cash. AVA has bucked this trend by paying dividends, increasing net cash, increased margins, and debt-free; whatโs not to like!
For now, the shares languish around the au$0.41c, which is 50% off their high but well ahead of my initial report at au$0.12c.
I firmly believe a material move north pent up; it is just a matter of time!
House broker, Canaccord has slashed AVA's target price by 32% to au$0.58c due to delays with the IMOD, due to Covid-19, which highlights the over-reliance on the IMOD, according to the broker, which is a fair point. I believe there will be material uplift with new contracts won by Mining3, and these will dwarf concerns the broker has over the reliance on the IMOD.
I have attached the broker note โฆ