APHA’s stock price continues to drop Why? Earlier this week, APHA reported earning...
1. Net revenue from sales dropped 24% from previous quarter
2. the price per gram is now $3.82 rather than $4.82, which means APHA must sell more weed to make the same $sales
3. Losses are mounting---ApHA reported a staggering loss of $361 million
As for all the worry about TLYR merging/voting----it's irrelevant. The a yes-vote is likely priced into the current share price.
The bottom line:
APHA is way overvalued, even at Friday's low of $16.5.... or whatever.
But we keep hearing "APHA-TLYR merger will become the largest pot company in the world.
A staggering loss of $361 million is something to worry about.
So scaling in as the share price falls is a hugely risking strategy. ( APHA is down as much as $23.50 in 8 weeks!!!)
This is flacking loonie toons!!!!
Even after the merger, you will not see a sustained reversal of trend on the monthly time frame until APHA improves it's fundamentals.
Buyer beware!!!
Learn how to read a chart on the daily, weekly, monthly time frames. Is the share price trading in an uptrend? Downtrend? Range---sideways?
Learning the most important technical indicator---the Moving average---the average price of a stock over 10 periods, 20 periods, 50 periods, 100 periods, 200 periods, year to date...( Periods refers to time frame, such as a 1 minute, 5 minute, 15 minute....1 hr, 1 day, 1 week, 1 month
Learn the most important fundamental indicator - EPS ( Earnings per share) and PE ( price earning ratio) , sales, revenue, losses...
APHA just reported mind-boggling losses and a huge drop in revenue, why would the share price go up????
IF earnings don't improve next quarter, you'll see a shite storm in terms of a selloff.
APHA is a falling knife!!! The monthly and weekly chart are in a downtrend!!!!
I mentioned last week that there was a major support at $16.5.. or whatever, and the share price fell to this level
Where is the bottom? We are not there yet.
Just use a chart and Moving Average to get a good indication....
1. Look at a chart...The sp of APHA keeps declining on the monthly and weekly candlestick chart...So if you want to buy now, you risk becoming a bagholder...
The chart shows a downtrend.
Buy and hold??? Only an uptrend!!!
or want to swing trade or day trade??? Trade the uptrend to go long, or the downtrend to short...
or trade the range---support and resistance
2. The share price of almost all stocks, will likely move down to a moving average for various time frames, when the stock is in a downtrend....
Conversely, the share price will break above a moving average and remain above the moving average in an uptrend......
So, should you buy APHA and go long????
only Day trade---support and resistance
How about using the Moving average to help identify a buying opportunity...
APHA's
-20 day MA (moving average) is $21.93
- 50 day MA is $22.89
- 100 day MA is $17.47
-200 day MA is $11.95
-year to date MA---$20.30
Notice how APHA is trading near its 100 day MA.
.....
And finally, APHA can easily fall to
the 200 day MA if their earnings don't improve next quarter
Next major support, as indicated by the Candlestick chart, $15.38 or so on the daily time frame
I believe APHA is still a speculative play.
Buying and holding is risky.
And so, after buying and holding for many weeks, I am all cash. Until the downtrend reverses and quarterly earnings improve ( we will know next earnings report July 31), I will only day trade this stock.)
All pot stocks are still speculative stocks...Here we are almost 3 years since legalization, and we still get the same promises by the corporate stiffs, like buying pot stocks is like finding burried treasure!!!
All pot stocks are still losing a shite load of money.
And the best pot stock/company, APHA, just reported a loss of $361million last quarter...
Sources:
-Motely Fool
-Barchart
-Yahoo Finance