RE:RE:Money management is 25% mental and 75% psychologicalI do not like to speculate. This is a good company and I recognize it as a money maker. I went into detail on this topic in previous posts on this bullboard. What I can give you is an example of what I did in a similar predicament with MRE.
In November 2013 I bought MRE stock before earnings. I caught a small and brief up draft and sold. Then the namesake of the company Nat Rea brought forward a lawsuit against the management of the company. Notably he did the right thing and did it after earnings. The first drop in the stock was to $9...a 20% drop in price. I hoped that it would be a quick spat as happens in industry and it would patch up and go forward. When it took a turn for the worse to $8. I bought some more. However, the spat continued and I bought more at $7. The spat is still on going but time has healed some of the wounds and some progress has been made in resolving the dispute. The company showed that it could not only run but still make a profit despite this side show. I sold in April at $11ish. At the low end I made a 15% gain and at the high end I made a 57% gain.
I have no idea what the time line may be on AVO but I will be playing this strategy once again hopefully to the same sort of end result. So far there is no lawsuit and the possibility of one should be negated by the presence of a NDA. From what I can see the damage is only emotional and the finances of the company are all the same. They did record a 50% beat. However some in the financial community might be trying to save face by punishing the stock price for a while. The short opportunists have taken their run at it. General market momentum has taken a lot of the buyers out of the market. The buy/sell ratio on the TSX is not the lowest I have seen it at .24...I have seen it in the low teens. I can see that being the reason that some will say that this stock price will take a while to heal.
I will repeat...the market is the place where supply meets demand for settlement on a price. If weak ninnies will stop offering up supply, demand will push the price back to where it is more in line with the success story that this company is.