RE:RE:RE:Insider Buying Activity Quinlash,
Real pleasure to read the insights and research you share on this board. It makes it worthwile filtering through the myriad of negative posts of shorters and bashers to get to your nuggets of wisdom. They are instructive.
Thanks for sharing....and KEEP sharing!!!!
Go Hexo!
quinlash wrote: Hi Rain,
Appreciate the feedback.
Yes, most, if not all, of the insiders are sitting on a loss with the shares that they bought on the open market however they have not sold. These are they people who wake up every day and go to work in the Cannabis industry and eat, sleep and breath the industry. They have invested millions of dollars into a sector that they believe will pay off.
The one thing that investors tend to ignore is TIME. The compulsion to buy and sell on pullbacks and runs is high unforunately the compulsion to sell on a pullback (sell on FEAR) tends to be stronger than the BUY on GREED (aka FOMO / Fear of Missing Out).
Right now we have lots of fear and uncertainity in the sector and this is swaying many to not buy and others to sell. For seasoned investors who are optimistic on a stock with a long term strategy this is the time they will start to make their plays.
There is little that can be done to control a shareprice however you can control a few things to help minimize your risk;
Invest only the cash you can live without
The amount of stress the markets will cause you is directly related to the amount of money you put into play. If the money you add is an amount you can live without for the duration of your investment period (say 1 year) then you can more easily accept a pullback on the stock. If the money you add is an amount you can accept seeing a complete loss on and the company you invest in goes out of business then the loss was something you already considered before investing. No one wants to see a complete loss however it should be considered with any investment as good companies have gone down before.
Invest with a strategy
Many new investors look at one stock and play their entire cash position in one buy and trade their entire holdings in one sell. When you do this you are limiting your options to average down your shareprice on a pullback. The lower your average is the better your odds are of exiting a stock in the future with no loss or a minimal hit if you should decide to do so. Taking a partial position in a company you like when you think you see a good buying opportunity will allow you to average down in the event an even better buying opportunity comes along. To do this you simply put in 50% (or less) of the total amount you are willing to put into play. If the shareprice pulls back you can then add additional money while still staying under the total amount to invest and further reduce your average. It's best to mock up the strategy in an Excel spreadsheet so that you can see how your average will change on each buy (adding more money on a small pullback often does nothing) Partial Sells on a Run This more or less is a repeat of the above however it is for when a SP jumps. Again, mock this up in a spreadsheet to see how your average shareprice will change. On a run (especially over your average) you can do a partial sell to reduce your total investment (exposure) on a stock. The most important thing a partial sell does is that it reduces your average shareprice therefore ensuring you will have a better chance of pulling your original cash at any time you decide it is best to exit or if you need access to the cash for other things.
A simple example is buying low then there is some very positive news that causes the shareprice to double overnight. If you were to sell half of your shares on the double your new average is actually ZERO so at that point the company could literally go out of business and you do not lose any money.
TRADE THE PLAN This is likely the most difficult part of investing. Fear and Greed tend to cloud judgement so you really need to do solid research and set a plan and timeline you are confident in. If your goal is to simply beat the gains your bank will give you (apx 10% on a decent mutual) then you have to hit the sell button when you see your 10% + gain. Most importanty consider the TIME you are willing to play the stock for. If it is a few months or a year then do your buying on the lows of that period and be ready to average down, when you hit your max investment dollar amount you stop trading until you see the SP run over your average or until you see something crediable that indicates you need to exit and take the hit (the hit you signed up for when you sat down and came up with your investment strategy).
Anyhow, I have to run. Hope this helps a few folks.
GLTA
Q
RainMan91 wrote: Quinlash, I appreciate your comments most on this board.
So with this insider info, my takeaway is that Mr Chiara is into HEXO for $381,360 at avg sp of $2 and now valued at $125,730 with the sp at $0.66. $255,630 loss to in 4 months.
Must some pretty intense internal meetings there at HEXO headquarters!
Either there is a cork in the bottle about to blow or the bottle is near empty and about to be smashed. I'm hoping for the cork to POP!
Thanks