Expected Volume & Liquidity
EnWave (TSX‑V: ENW) is a small‑cap, low‑float security on the Venture Exchange. Historically, ENW’s average daily volume (ADV) on the TSX‑V sits in the 100 k‑150 k share range (roughly 0.6 %–1 % of float) and spikes to 5‑10× that level when the company releases quarterly results after‑hours. Based on the last three quarter‑ends (Q3 2024, Q4 2024, Q1 2025) the post‑close trading day saw 4‑6 times the ADV in the 30‑minute window surrounding the release, with total turnover often reaching $2 M‑$3 M in dollar volume (≈ 250 k‑350 k shares). The upcoming Aug 21 release is expected to follow the same pattern, with an anticipated spike to ≈ 0.8 %–1.2 % of the float traded in the 60‑minute window (≈ 200 k‑300 k shares), translating to $1.5 M‑$2.5 M of liquidity.
Trading Implications
- Pre‑release positioning: Because the earnings are released after market close, the market will absorb the news in the overnight/next‑day open. Expect a tight bid‑ask spread during the after‑hours window (liquidity is thin) and a potential 3‑5 % price move on the first 30‑60 minutes of the next trading session. Traders should limit size to ≤ 5 % of the expected 200 k‑share volume (~10 k shares) to avoid slippage.
- Technical cue: ENW has been trading in a narrow 12‑month range (≈ $0.95‑$1.20). The earnings release typically creates a short‑term breakout: if the beat/beat‑plus is confirmed, the stock often opens +3 %‑6 % on higher volume; a miss can trigger a 4 %‑8 % drop. Use tight stop‑losses (e.g., 3 % below entry) and monitor the after‑hours order book for early imbalance.
- Liquidity management: Consider placing post‑market limit orders (e.g., sell at +4 % above the prior close if you are long, or buy at -4 % below the prior close if you are short) to capture the move without getting caught in the thin after‑hours market. If you intend to trade the open, use pre‑market block orders (≤ 10 k shares) to capture the price gap without overwhelming the thin order book.
In short, expect elevated volume (≈ 200‑300 k shares) and moderate liquidity on Aug 21, with a clear opportunity for short‑term directional trades but with careful position sizing to manage the thin order flow.