RE:OVERSOLD IMO triggered stops now will build base boom over 5
I expect that it is oversold. It dropped today on news that they were losing 25% of their monopoly on one particular species which in total accounts for about 4% of their total revenue (25% of the 15% which the surf clam accounts for).
The thing is it already dropped last year when the government first announced that it would add a fourth licence comprising 25 per cent of the total allowable catch of Arctic surf clam, and that the successful applicant would be an Indigenous entity and majority Canadian-owned.
So today's new is not news apart from the fact that they identifed who won. So the share price has really dropped twice on a single piece of news. And it has lost about 50% of market value - since the first announcement - on an event which will apparently cost 4% of sales. Of course the marginal profit is probably greater than 4% but its no where near the percent which the share price has given up. Tempted to buy - but trying to curb my enthusiasm based on prior experience with other companies ;-)