RE:FULL REPORT: Dollarama Stock to Decline 90%That's a good "short thesis" but I disagree with "cut your loses". Most investors in Dollarama have done very well on paper. They need to lock in some or all of their gains especially if the bear campaign is just starting. This is a departure but I see a lot of red candles on the candlestick charts.
This does not look good on a technical or fundamental level and when a $123 stock is only worth pennies, the "fall from grace" can be intense. Investors need to look at the facts, just the facts.
So far, I'm impressed with your "short thesis", not perfect but fact filled. Which is important.
The debt increase would account for the negative tangible book value on this stock. That is quite shocking indeed since the last quarter could signal a true reversal from the long trend.
Growth stock can get very overvalued and that's what we have here considering the severe declining revenues.