TSXV:NDVA.H - Post by User
Comment by
ScarletSpideron Jun 10, 2024 11:08am
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Post# 36080876
RE:i predict
RE:i predictI tend to agree. If there was an imminent buyout to transition to it management would have to start losing shares but we have not seen this so while there may be negotiations and what not i dont see any moves indicating a buyout is happening and the likely is business as usual. Having said that i stil say the most likely candidate to buy out is Canopy. As to taking the company private i dont know how that can be done with two exceptions one not being favorable. No matter what the shares will either need to be paid out which clearly management doesnt have the means to do or they will file for bankruptcy protection pay off creditors and the shares become worthless and that doesnt at all look to be what management intends to do when stating that it is looking for best shareholder value although there are no guarantees of any deals or anything being binding.
As far as the other comment that it would be better for Canopy to take the company out now vs the growth of revenue in the coming quarter while tgat is quite a logical thing to say and true to the extent of better balance sheet it is more so the deficit and debt that is a bigger part of the equation there will still likely be a fair size left but the strength of growing revenue makes it more attractive but not necessarily for a higher buyout price.
It will be business as usual more than likely and the sp may move up or stay relatively flat hard to say. With second quarter it is posdible this may rise to .05 to .06 and in time drift down.
That said while the company is weakened by debt it will survive for quite some time but really it all comes down to what is management really after?
I would buy at these levels not more than .04 if you are looking at a possible near to mid term gain. I think .05 to .06 will be possible but it will drift down and climb up. Longer term .09 to .10 possible if this carries on without being acquired so if one is looking at no less than 1.5 times .06 .04 is a strike point. .035 is the smarter one no doubt tge lowet the better. I averaged a handfil at .05 which is high.
I would look at .03 to .04 max but with small amounts and commission my average will likely still be closer to .05 if i buy more. I will hard pass above .04.