ExpectationsIn the past week, I noticed a lot of delusional expectations. This is a $50M market cap stock on the venture exchange. It's so small that it won't attract high general market interest, nor any institutional investors yet. These kind of small cap stocks offer high risk, but also high potential rewards to patient investors who believe the company will be able to grow significantly and increase shareholder value in the future. This does not happen overnight.
It took Martello years before they've finally successfully acquired, integrated and developped a product with high attractive growth potential. In its early days in the public market, it generated such high interest from retail investors simply because of Bruce Linton's involvement. Probably more than half of the shareholders who bought in came from weed stocks investors thinking it'd be a hit like Canopy and did not know anything about the company's business.
If you're not familiar with small cap stocks, you'll see that they follow similar stories. It normally takes years before they hit off (caveat: unfortunately, some also never do). But those that do, it becomes a home-run.
You guys remind me of my friends who bought in Nouveau Monde Graphite. They bought it years ago at 0.50/share and complained non-stop everyday seeing the SP gradually hit 0.20 with their unrealistic experations. I reminded them to be patient, there's no reason for the stock to pop off until they reach a stage with the right catalysts aligned for them to generate general market interest from those who had no clue the stock existed. Look at where it is today. Even Canopy took years before it hit off. Remember the early days on the venture trading under the Tweed name? There were months of decreasing SP and low volume trading before it caught the general market's interest and hit off.
In the meantime, if you are looking for strong daily action, there's cryptocurrencies and meme stocks.
Cheers, have a great week and good luck to all!