FormerXBC Inc XEBEQ

RE:RE:relative valuation of XBC and GRN

[tamaracktop]

Personally, I have no idea where Greenlane is going.  I admit that it looked better at 65 cents on the way back up than it ever had, both fundamentally and technically, but now that it's $2.50, I don't have a clue.
    I only know two things about Greenlane for sure, neither of which can be construed as a judgement call that it's topping out.
    The first thing is that many people undoubtedly see Greenlane as a mini-Xebec. As Xebec goes, so-will-Greenlane type thinking. While Greenlane will certainly be influenced by trends in this sector,  it is a misapprehension to reason that Greenlane is a Xebec clone. The two are not even close to sharing a resemblance, if you dig deep. Buying Greenlane is not a proxy for buying Xebec.
    The second thing I know fore sure is that the two companies have vastly different shareholder bases. Greenlane is likely far more of a trading instrument than is Xebec. There are probably far fewer shareholders of Greenlane that are comitted for the long haul. The number of retail shareholders as a percentage of outstanding shares is far greater in the case of Greenlane.
    Retail investors invest like lemmings. They will follow the leader right off a cliff. As a consequence, moves higher or lower are likely to become far more stretched in either direction for Greenlane than they will for Xebec. Buy Buy Buy!. Sell Sell Sell!
    This explains why Greenlane's Beta is 2.86, while Xebec's is 1.34.
     Obviously Greenlane has far outperformed Xebec recently, and a sincere congrats to its shareholders. This recent out performance reminds me of the tortoise and the hare. greenlane has put on a burst of speed, but the tortoise won the race.