Write- down of $1.8 billion and earnings of $70 to $72 million----Already priced into share price???
Some talking head on Motley Fool said just that.
hmmmm. I am honestly not sure. My experience with share price ---when a company announces a huge write-down on earnings day---is the stock Gaps down,,,
Lets see if the bearish news is already priced into ACB's share price.
Lets also look at bids and asks pre-market, which will likely determine a pissible opening share price.
Based on my stock trading experience, I expect a "Gap down".
The question is, "when to buy in?"
A word of caution: If ACB gaps down, we should know the stock price range in the first hour.
Another scenario that's quite common is an oversold bounce---when the relative strenghth index drops below 30, after a huge sell off, theb traders buy the stock, run it up......sell it off, and the stock falls ...
I don't believe the bad news is already priced into ACB's share price....
That's why I am all cash "looking for a bottom fishing" buy in...
We could see some FOMO if ACB announces something positive....
I am just speculating.
If ACB drops to $7.39----a major support, I'll buy. Orherwise, I will wait a few days or weeks ans buy ACB stock when it begins accumulating----trading in a range, look to buy at the support....what ever that share price will be.
A word of advice: Never listen to a talking head, columnist, analyst----they are more often wrong than right. When it comes to stock picking, You can never predict the future share price. If you could, we'd all be rich.
So, I wait patiently....expecting a Gap down....But WTF do I know----that's why I am all cash.