Weebit Nano (ASX: WBT) shares are down 18% again (WBT shares seem to like moving by that number) as a result of the resignation of one of the directors. This does seem a little bit much, near 20% off just because one director goes. True, it was Fred Bart, the WBT Chairman who is going. It's also true that he's going with immediate effect, which is a bit of an oddity. But that has been the effect :”with speculative tech player Weebit Nano down 17.9% on news its chairman Fred Bart resigned.” The answer probably being in that “speculative tech” part.
As we've said: “Weebit Nano (ASX: WBT) is a difficult stock to accurately price. They're in that far end of technological development that few of us really understand. They're also trying a strategy that could - could - revolutionise matters or could turn out to be a dud. In the long term it's a pretty binary outcome pair. So, the current valuation of Weebit is going to bounce around as sentiment changes over which of the two outcomes is likely to prevail.”
And as we've also said: “The story here is of a change in sentiment about Weebit. It's inherent in fact in the manner in which it is currently revenue free. Yes, of course it's wondrous to be the possessor of a new technology that's going to sweep the world. Or may do, or perhaps might not of course. But when all of the value is in what might happen and absolutely none in what is currently happening then the share price is highly leveraged to even slight changes in that view of the future. “
The entire Weebit Nano valuation is based upon hope - hopeium even - about what might happen in the future. Any even slight change in view over what is happening now therefore has great leverage over that capital valuation.
Weebit Nano share price from ASX
The actual announcement: “Commenting on his tenure as Director, Fred Bart said, “It has been a privilege to serve on the Weebit Nano Board for the past five years. Weebit Nano has a focused strategy, an extremely talented team in place, clear commercialization pathway, and major growth opportunities globally. I look forward to following Weebit's progress over the coming years as it becomes a major player in the global memory domain. “With all the pillars now in place for Weebit Nano's next phase of growth, and increasing demands on my time from my other Board roles and private companies, now is the right time to step down from the Weebit Nano Board.””
That's not the language of an acrimonious - or even hurried - departure. 18% down on this seems a little much, therefore. Assuming no other news it's possible to think that WBT will revert, therefore.
