RE:RE:RE:RE:Risk/Reward is GreatI think the original cause of the increase from ~$0.50 to ~$2.00 was that they were earning ~$0.05/share at the time at had announced increasing capacity by 10x with the new plant (with guests on BNN mentioning this). Most people assumed that sales would increased significantly after this (and with gross margins of ~70%, the increase to earnings would be massive). However a sales increase hasn't materialized (so of course the share price went back down as the company didn't meet the market's expectations). PGX was there, however I don't think people were assigning much value to it at the time.
emanresu1 wrote: I tend to agree with you there however the lack of insider buying now at these price levels should be a huge flag. Are insiders not the smartest of the smart money? Who can possibly know more about a company? Moreover, I don't see much of real susbtance having changed in the past couple years. They are plodding along. As such, what reasoning explains the price movement from around 50 cents to over $2.00 a year ago to now be back to 50 cents? When I questioned the price movement I even had people suggest that they were going to put me on ignore for some bizarre reasoning. (I'm simply seeking a rational approach and rational information for a rational discussion - not a debate - on czo's business valuation. So, last years run up in price appears to shows how the game changing hopes for PGX last year was fleeting. Or was it due to other heightened expectations? PGX was a known possibility before the price run up, and it still a "known, known" today when the price is back down at 50 cents. So which price reflects a more reasonable price level? 50 cents or $2.00? CZO's value has to account for a huge margin of safety to account for the possibility of wasted R&D, failed product and all the other problems that are inevitable. The problem is that no one is talking valuations in any intelligent form, only speculative 'potential'. And that applies to every microcap stock out there - they are of course all going to the moon - when the stars align for them.