Supreme Cannabis Company Inc. (The) T.FIRE

lawsuit and deal going through

[SamRothstein]

I have owned dozens of stocks where a lawsuit like this was filed.  They pretty much never amount to anything.  Those lawyers just try to rope in disgruntled investors.  99% of the time these lawsuits either go away or they settle for trifling amount because it is cheaper to settle with them than to go to court.   As for deal falling through, highly unlikely this doesn't go through.  Market agrees hence the share price being so close to deal price. Compare that to the Shaw Rogers deal where the Shaw price is over 15% away from the deal price.    Change of a higher bidder coming in are also fairly low as this is a friendly merger, it certainly looks like they have the votes for current deal, and I don't think at this point the sector is going to see that kind of willingness to chase assets and pay top dollar.   Of the 3 scenarios, higher bidder coming in is most likely, but it is still fairly low chance.

[aurorahigh]

Agreed.   Is Fire worth more?  Based on some analysts predictions and price to earnings perhaps.  They weren’t trading at same multiples as some companies and they were turning things around.  If you’re average was high and didn’t or couldn’t/wouldn’t average down even without buyout would of been a long haul and a reverse split was imminent which would of left a negative view

[SamRothstein]

A good rule of thumb that I learned after a fair amount of heartache is to sell anything that reaches 10% loss that I have a very short term orientation on.   If I have medium to longer time frame, i will let my loss reach 15%. If I'm super bullish, feel that I still have a good margin of safety and have long term time frame I will let loss go to 20%. But never beyond that.