RE:RE:RE:RE:RE:fabriceI'll reply to this post in particular because it highlights the two main points I want to respond to. There's a lot on this board (as there usually is), some which is valuable commentary, other that is noise. But I digress...
Things we should consider while looking at this stock today (these have been my mantras whilist I have held and flipped this stock):
- A year ago today, the stock was trading at $0.58. Now that we've seen 4 quarterly results (with another coming at month's end), multiple acquistions and a shift in management who have a large position in this company at $1.50 per share, is the company better or worse than 1 year ago?
- The TSX and Venture have been losing for about the last 70 days or so. Friday was a sign of relief, but overall, this has been a rough year for Canada.
- Tech and health care are typically favourable coming into Janurary. With energy being an absolute disaster play this year, I think smart money will be moving into this space.
- Let's not forget that TRX was bought out after a number of acquisitions. TRX and PHM are by no means the same company, but there is a lot of action is this space. I don't see it being completely unreasonable that a selling deal may come up.
- If the bottom is in, this presents a great buying opportunity. For longs who may have been caught at the top, buying at these levels will lower your cost average to approximately the $1.30 levels. If more good quarterlys continue to be reported, that might combine nicely with a new year of buying. TSX uplisting and the prospect of a buy out make this an interesting opportunity for near-term and long-term investors at the same time. If prices trend similar to last year, $1.47 is late March. If a potential buy offer does show up and it happens to include a nice premium, a cost average of $1.30 on a large position of shares doesn't sound like a bad thing to me.
That's my thought process at this point (however inaccurate or cloudy it may be). Positioning is important to my overall investment strategy. We don't have a crystal ball and we can't all pick winners. I think if you can position yourself appropriately with a stock that you believe has the potential to meet or exceed the break-even price you've established, you've done the best you can do as an investor. Based on the way this stock has been performing vs. the way it's sp is trending, I think eventually the hard facts will start speaking for themselves and the SP will come to reflect that. If I'm holding at $1.95, I'm a buyer at $0.53-$.60 to average down my costs.