RE:RE:RE:RE:Does any one have an idea how come acb drop it today These stocks are all speculative because the SP we see today is based on future revenue, future assets, and expansion. Most companies earning 5 million a quarter are not valued at 700 - 800 million. Because we will not see the revenue that suits todays SP for close to a year, is why the SP is so volatile. If there was no rec, and growth was based simply on the 10-20% per month and Q revenue around 5-6 million, our SP would be a heck alot lower than its at today.
However, most analysts agree this is a rare once in a lifetime opportunity because there is already a huge market for MJ, its just about making it into a legal one. Therefore investors are placing bets are are willing to take the risk, inflating these small companies with huge valuations. Now its just about sitting back and waiting for these companies to grow and mature... however some people do not like waiting. If you don't mind waiting and don't need the capital.. there should be no problems.. personally I don't mind at all (don't need the capital anytime soon)
aurorahigh wrote: I don't disagree. But there has been a lot of positive news for this sector in recent months..and if stocks are trading same as a year ago makes a new investor wonder....hence the original post...and I agree once a couple more quarterly revenue are published and industry starts taking shape it will rebound hard and fast to the upside....
Not sure why many still view these emerging companies as specu.ative? Is the industry speculative?...No...it's growing at a fast pace
Lets take Aurora for example....overvalued ? heavily diluted?
I still don't believe so ...in a new industry valuations are an u fair analysis and dilution in and of itself is not necc a bad thing either....but consensus seems to evaluate these companies based on numbers...
So let's see...at current rate acb conservatively is on target to be a 20m + yearly revenue company on its own ...this is before the Germany aquisition and rti...and pretty sure they'll add to their roster which will generate more revenue...so at present is a market cap of 830m unrealistic ?...heck no...