Chalice Brands Ltd CHALF

RE:My reasoning for the firesale

[jutah70]

Some people seem to think the selling is going on by one sinister cheap share holder.  It is possible that the selling has forced some of the others holding cheap shares to unload as well.  Don't forget human nature and herd mentality.  Others are thinking 'why am I holding and taking loses'.  So they sell some before it gets worse.  Then worse happens and they react again.  It's become a bit of a vicious circle.

There could be agreements with the houses they hold their accounts with.  Sell X number of shares over a period of X number of days/weeks.  If someone is trying to sell 2 million shares they don't just lay it up on the board.  The traders will try and execute it in some orderly fashion.  But they are selling a bit at the mercy of what people are offering up to buy.  And knowing someone wants out, the buyers are making them pay for their exit.  It's just business.  Stocks do overshoot to the downside.

Unless there is some devastating news to be revealed in the report on Friday, this is just the market being the market.  If the company is withholding negative information while insiders sell, then I can understand a call for new management.  But we have not seen that to be the case.

Comes down to perspective and timeframes.  If you earn your living from trading then what is going on is a pisser.  If you are looking at an investment time horizon of 1-3 years, what is happening now is a gift.  I don't really care if the next 2 quarters see the stock down and stalling.  More time to accumulate.  And if the price can stabilize and stay low enough that allows me to maximize the amount of shares I can transfer into my TFSA for tax free gains over the next few years.

A lot of commentary this last 2 weeks is a joke.  Like I said in another post, look at the cockroaches coming out.  Just noise.  The quarterly report has more weight than random posters on here.