GREY:CVHIF - Post by User
Comment by
AbNormAlon Nov 04, 2016 12:37pm
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Post# 25425427
RE:Bought @ 7
RE:Bought @ 7Precisely mirrored my thoughts. CXV looked like "the one" for a 'conservative' spec player. The spanking does not stop. Will wait to January... twiddle my thumbs. Not selling in between and I have a lot to sell.
traderguy5000 wrote: Just got filled at 7, but I think that is my last buy. We know from Q2 financials that the balance sheet is strong. But Q2 obviously disappointed the market, and large holders are dumping. The company does not promote or communicate. It simply tends to business. I can respect a company that does not promote itself, but that leaves us with nothing until January. The market is telling us something. It's not telling us the company is insolvent. We know that from the financials. But it may be telling us that investors have lost faith that the company will ever become profitable. CXV may just be another microcap that grows sales, but never makes a dime. I know we all think (and hope) that Q3 will save us. But we don't know that. If everyone truly belived in a cash flow positive second half, we would not be trading at 7 cents. I look at CXV as a trading vehicle. It's very solvent, but there is extreme confusion regarding its prospects. That's a recipe for volatility, and at some point, it should be possible to trade the volatility. I'm very long, but will be scaling out on any significant price appreciation.
CXV has also taught me that I lack the competence to invest in microcaps based on fundamentals. Many of us on this board are in way over our heads on CXV. CXV appeared to be an easy to understand business with amazing prospects. It was not a resource company digging a hole in the ground with little chance of ever finding anything of true value. And it wasn't some tech stock that doesn't even have a business model. All of us here have invested in CXV based on fundamentals, and come up empty. I no longer have the hubris to believe that I really understand a business. You can't know everything. You don't know what you don't know. And what you don't know can kill you. So, I wait and hope for an opportunity to exit, along with all the other bagholders.