A Canadian energy company, ZCL Composites Inc. (OTC:$ZCLCF), (TSX-V:$ZCL) saw significant share price volatility over the past couple of months on the TSC, rising to the highs of $13.64 and falling to lows of $12.31. What does this mean for investors? It’s the primal opportunity to enter into the stock, and potential to buy at a very low price. But, is ZCL’s current trading price of $12.84 reflective of the actual value of the small-cap? Or, is it undervalued? Let’s take a look.

ZCL Value

The stock is speculated to be around $8.57 but is currently trading at $12.84 on the share market. That means, the primal opportunity to buy at a cheap price has passed- but is there another one on the horizon? Since ZCL’s share is fairly volatile, this means that the price can sink lower, based on its high beta indicator.

ZCL Growth

Perhaps the most important factor investing is the ability to look ahead, especially if you are building a growth portfolio. In the upcoming year, ZCL’s earnings are expected to increase by 33.31%, indicating a very optimistic future.

Therefore, is right now the time to sell? If you believe that ZCL should trade below its current price, selling high and buying it back up again when its price falls towards its real value profitable.

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