VCN The recent 33% surge in the company’s stock price is certainly a positive sign. However, a healthy price correction is not only expected but beneficial in the long run. Corrections occur when the initial wave of enthusiastic buyers slows down and more investors start monitoring the stock rather than actively buying. This « cooling-off » period can be good for several reasons: it allows the company to put the raised capital to work for growth, and lower the volatility of the stock. A less volatile price movement helps attract long-term institutional investors who value stability.
Also, when a correction occur , it goes below the average entry price of most retail investors. This discourages mass selling and gives the company more breathing room to use the invested capital without facing constant market pressure.