Chalice Brands Ltd CHALF

potential

[jutah70]

Not here to pump (for disclosure I do own a little bit of GLH).  But after scanning some of the posts I thought I would just add a few thoughts.

Might they be holding back news in order to see how the integration of the new units pans out?  Who knows if deliveries are late; assembly doesn't go as smoothly; the initial extraction doesn't go as efficiently as it has in the past; etc.  From what I understand their expansion is quite aggressive (in order to meet the demands).  Regardless, the numbers generated from these new machines will be tangible news (not pump and fluff of what "potential" the company might have for the future).  What comes from them will generate into actual balance sheet dollar than can be evaluated by investors and analysts alike.  Unless they are fudged, the numbers don't lie.  If the revenues and sales are there, the growth in the share price will reflect that.  Especially if this sector is the only game in town - we are not making money off our oil investments these days (hmm, or are we, lol).

They have already applied for the US listing.  While it is not a great market (OTC), it does allow for additional investments.  Maybe the exchange is slow to get the work done for the listing.  They still won't get a huge investment market from this, but a step in the right direction.  The stock could be held down as a courtesy.  They did indicate that they hired some PR and investment firms to promote the stock (I believe there is/was a road show).  Wouldn't it be a slap in the face to get all these potential US investors pumped up about the stock only to have them watch it go up 10-50% while they are hand tied because they don't have an exchange to buy on yet.  So the market makers  may be waiting until the US listing happens to let the market be the market.  No doubt that won't mean the stock doesn't see manipulation.  

Maybe they wait for this US listing to happen then put out a news release about the new extration machines and the initial numbers they are generating - just to get some people crunching numbers.  People will then start to do projections on future revenues and profits.  Stuff like that will start to drive interest and share price.

There is also the "January effect".  Often times the start of the year is good for small caps.  Especially when people and funds have had a challenging year prior.  So they play these small caps to get a little money going in their funds to try and generate some return figures.  As well, they need to wait until January so they are not showing these type of investments on their books if their quarter/year end is Dec.31.

It is best to be strategic and spread out the news.  Otherwise if investors don't hear or see anything in a while they get anxious and the stock delfates a little.  Remember, investments like this see more traders than investors.  So tying back into the US listing, some US invetors and traders may want in before they start advising/selling to their clients.  So maybe we see a bit of a down so they can shake the loose leaves from the trees to try and scoop up cheap shares.  Another tactic will be to see the strenght in the stock.  Before you buy in a sizeable position you test to see if selling produces more selling.  Or if the shares get bought up.  Don't always assume selling is a negative thing.

From what I understand GLH has seasoned management.  They know how these work.  It's not like the company is being run by a bunch of smart weed science guys who don't know the inner workings of the investment side.  Good management is worth its weight.  They have run bigger companies with more regulation.  I trust they know how to chart a path forward.

Having said all this, it doesn't mean they don't see their fair share of roadblocks, problems, etc.  You just have to be aware and prepared for when those things come.  If the price goes down for reasons outside of the company, you buy more.  If the stock goes down because of company specific things, you get out.