Indiva Ltd V.NDVA.H

RE:Insider buy yesterday

[davgro]

Stuboo wrote: 100K shares public market buy John Marrotta. Nice

Although it is always nice to see an insider purchase shares in the public market, I personally don't consider an investment of C$14K by an insider a strong vote of confidence in the stock.

I believe market expectations of Q3 earnings are already baked into NDVA's stock price.  I will wait until after Q3 earnings are released to possibly add to my position, if there is a significant positive earnings surprise.  In addition, I think many market conditions are serving as a headwind against the current NDVA stock price:

• Small caps are out of favour and that is reflected in the current share prices with many new 52-week lows.  This is happening to good, strong companies regardless of earnings and guidance.

• The Cannabis sector is out of favour with investors.  When any positive sector news is released the stocks rally for a day and then selloff over the following days. There is no sustained momentum.  Investors are waiting for significant news like US safe banking legislation, decriminalization, and revisions to 280E.  Eventhough these issues mainly affect US MSOs, Canadian LP stocks rally on any positive news on these matters.

• I believe the big mover for Indiva will be regulatory change to allow for higher concentration edibles above the current 10mg restriction.  That will not happen until 2023 at the earliest as it doesn't appear to be a federal government priority.

• Tax loss selling season is just getting started and investors of cannabis stocks have  large capital losses on paper that they can trigger and apply towards 2022 capital gains.  This could result selling pressure with new lows and better entrance points.

• And lets not forget we are entering into a recession with rising interest rates where discretionary purchases could be severely impacted.  Cannabis revenues in Canada appear to be on a decline based on recent news reports.

I am not bashing NDVA as I hold a sizable position, all I am saying is one insider purchase valued at C$14K is not the flashing BUY signal I personally am looking for.  And based on today's volume and stock price the market agrees.  This is just my opinion of course, others may disagree.

GLTA