TSXV:RHT.H - Post by User
Post by
93Darkhorse93on Mar 14, 2017 3:44pm
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Post# 25978275
Technicals Look Good, Valuation Cheap...Price Follows???
Technicals Look Good, Valuation Cheap...Price Follows??? I keep hesitating pulling the trigger on this name but I don’t understand why the market doesn’t take it higher,
Technicals: if you look at the On Balance Volume accumulator it continues to move higher ever since the IPO hitting new all time relative highs. When all hope looked lost March 2nd when they tried to sell it off they couldn’t push it to a new relative low.
Valuation; With a signed contract for 6M+ in annualized revenue for a reoccuring contract on a 4x multiple should be worth close to the current share price alone. That doesn’t even consider the optionality of all these pilot programs and an additional product development for everyone’s favourite sector, marijuana!!!
Incremental CEO buying of 225,000 shares cannot hurt either. In a name this small she has to know she has something under her sleeve with regards to additional contract signings. I don't understand why this is not higher or why I need to be in the name tomorrow because as a company I like what they are doing but I am not sure if it is a stock I have to buy?