Water trading just too tasty: Investors buy the dip on Vysarn after Monday tumble

Water rights accumulator and aspiring vertically-integrated WA-based water player Vysarn Ltd (ASX: VYS) – a somewhat overlooked dark horse of late – has seen investors buy back in on Wednesday after plummeting -20% over the last week.

The major downside catalyst there was Vysarn’s termination of a proposed acquisition of a company called Newground, which was ultimately set to allow the company to expand its WA-facing private water market end-goal.

While it’s not necessarily true to say that Vysarn is hoarding water as drought gets worse – given that makes them sound like supervillains – it’s more or less what the company’s going for. Or at least, drought probably won’t hurt future demand.

If that sounds conspiratorial, consider that back in October of 2023, the company hired an ex-JP Morgan exec to manage its water trading arm.

At any rate, on Wednesday, there’s clear appetite from some investors to snap up more shares in the company while the company’s dropped back from A$1.00sh+ valuations. Vysarn hit an ATH of A$1.165/sh on the 12th of August this year.

As at 11am AEST on Wednesday, the stock rebounded +10% back to 82.5cps per live CBOE data with $907K+ worth of shares trading hands in the first hour of trades.

That puts the stock back to where it was in January of this year when I first flagged the company’s impressive +100% YoY returns – perhaps even more interesting given it doesn’t mine anything, work in tech, or claim to have a cancer cure.

Clearly, there’s risk-on appetite yet for the company, terminated acquisition of Newground be damned. That deal was going to see Vysarn pay A$30M upfront for the entity to be followed by A$20M in earn-out payments for an overall $50M deal.

Join the discussion: See what’s trending right now on HotCopper, Australia’s largest stock forum, and be part of the conversations that move the markets.

The material provided in this article is for information only and should not be treated as investment advice. Viewers are encouraged to conduct their own research and consult with a certified financial advisor before making any investment decisions. For full disclaimer information, please click here.