What matters in the end is always fundamentals I want to add that no matter what stratagems are being used to hold this stock down, eventually everything has to revert to fundamentals. I'll give you an example that happened to me just as recently as last March.
When the stock market meltdown ensued after WHO declared Covid an epidemic, it was chaotic. I was no longer able to log into my account. Even if I was able to, trading was halted and there was nothing I could do then. At that time, my portfolio was significantly down (still in the green, but compared to a month or a week ago, it was BAD). I know longer wanted to do anything at this time and decided to wait it out. I thought, "what the heck! If we human species have survived the two World Wars, the nuclear war, the Cold War, the Great Depression, the financial crisis and numerous pandemics when the medical technology was nowhere as advanced as it is today, then this virus is not going to wipe us out. So my job now is to find a way to make up for the "paper loss" from my portfolio.
The first thing that I spotted was the sudden spike in premium some corporations were trading at compared to their peers, despite having absolutely no material changes in their respective financials. For instance, I looked at my 8,000 TD shares trading at $52 and NA (National Bank) trading at $40. These two banks were trading at about the same share price just less than two weeks ago. EPS, operating margin etc were comparable. (I actually think NA is more efficient taking into consideration other ratios.) It makes no sense that all of a sudden, TD is now trading at a 30% premium. What I did was I sold all of my 8,000 TD shares and bought 10,400 NA shares. Within about three months, NA share price caught up to TD (it was the only bank to receive a Buy rating from RBC Capital Markets) and then some and so I sold all 10,400 NA and convert that to TD shares. I gained 2,400 extra TD shares as a result. Today NA's share price is $3 higher than that of TD. Last time I checked, NA $80 and TD at $77. I did the same by selling RBC to buy BMO and CM which was trading at a premium compared to its peers for no apparent reason.
I ended up making much more money during this pandemic just by being a little more observant
So what conclusion am I drawing from my experience?
That eventually, an undervalued company will catch up to its peers. TD cannot trade at 30% premium compared to NA when it's the latter that has more stellar financials. Just like the case of Fire. It is very undervalued, by several multiples, compared to its peers. It will get noticed and it will catch up. Stratagems can only last so long.