CMED SP growth comparisonI was trying to understand CMED's CEO complaint that outstanding ACB purchase offer has negatively impacted CMED's sp. Below is the sp movement of TSX's 5 biggest MJ companies. For comparative purposes, the dates used are Nov 14 (ACB's announcement date of its intention to acquire CMED; Nov 17 (ACB sp benchmark for the $24 or 4.52 shares offer); and today's sp after the 3-day pull back in the MJ sector).
| | Nov 14'17 | % Inc/(Dec) | Nov 17'17 | % Inc/(Dec) | Jan 16'18 |
| ACB | $ 6.41 | -14.04% | $ 5.51 | 116.15% | $ 11.91 |
| CMED | $ 15.30 | 26.27% | $ 19.32 | 30.23% | $ 25.16 |
| WEED | $ 19.96 | -7.57% | $ 18.45 | 97.94% | $ 36.52 |
| APH | $ 9.05 | -2.10% | $ 8.86 | 144.36% | $ 21.65 |
| LEAF | $ 16.61 | -1.87% | $ 16.30 | 43.56% | $ 23.40 |
SPs of the 4 companies were down on Nov 17th after ACB's announcement to acquire CMED. The latter being the only one that enjoyed a 26.27% sp increase since the day of the announcement. CMED never complained about this price appreciation at the time.
Over the longer term, from Nov 17 to Jan 16, CMED's had the lowest price appreciation at 30.23% compared to over 100% for ACB and APH (with WEED just a littel under 100%). This, I believe is what makes CMED CEO unhappy. (During the 3-day pullback last week, ACB's outstanding offer also ensured that CMED's sp held).
I think that CMED shareholders should demand answer (and compensation) from their CEO on their LOST opportunity to share in ACB's tremendous sp appreciation. Their CEO's steadfast refusal to accept ACB's offer in a timely manner cost the shareholders the realization of a great return on their investments. Enough of their CEO blaming his failed decisions and actions on ACB's hostile take-over.
For the greater good, CMED should accept ACB offer and become the biggest MJ player in the sector.
Just my opinion.