FormerXBC Inc XEBEQ

Three reasons why I'm bullish on XBC

[Winston1]

Here are 3 reasons why I'm bullish on XBC:

1) Everyone is bearish. When everyone is bearish it's in fact bullish. It's one of the strongest bullish contrarian indicators. 

2) This stock has lost 93.5% of its value from peak to trough in the span of 16 months. It peaked at $11.55 in January 2021, and perhaps bottomed at 76 cents in May 2022. It went from a market cap of $1.75 billion down to $120 million. These are extremes. It went from extremely overvalued to extremely undervalued. As the share price recovers it will find a happy medium between these 2 extremes. I believe we're on our way back to $3 in the next 6-12 months, in line with Scotiabank's analyst who covers XBC. I want to temper my optimism, so I believe a $3 price target is reasonable and not excessively bullish. 

3) The volume has been extremely high since earnings last Thursday, May 12th, every single day. That tells me that there's still very high interest in this stock and that many others besides me have been accumulating cheap shares. The short interest is at a record high 7.89 million shares, which will eventually create a powerful short squeeze as the shorts rush to cover. In the short-term I believe this stock will trade in the $1.30 - 1.50 range, and by short-term I mean within weeks.  

Good luck to everyone, and enjoy your long weekend.