RE:RE:Does anyone read Stock Chase?MA: There are a lot of analysts and shorts out there who believe that the entire mj sector is overvalued but valuation is subjective. Just look at Tesla's (I believe ACB and WEED are following in Tesla's footsteps in terms of valuation).
Portion of article about Tesla's valuation:
Valuation is both art and science, of course, as there's never a guarantee that a company will perform better in the future than it has in the past. But analysts strive mightily to favor the science side as much as possible.
Viewed through that lens — or spreadsheet — Tesla is confounding. Going by the most obvious number, the stock price, Tesla is worth $355 per share and has a market cap of $60 billion.
If you flew in from an alien planet where some type of money exists and math is used to value intergalactic undertakings, you'd be baffled: How can a company that makes vehicles and sells them for $100,000 on average post extremely infrequent profits?
https://www.businessinsider.com/tesla-is-impossible-to-value-2017-8
GLTA!
MartialArts wrote:
Stochchase covers "analysts" recommendations. One of the factors that many investors miss is the the bias nature of analysts.
"Sell Side" Analysts generally work for brokers who underwrite and sell stocks. They will have bullish bias recommendations.
"Buy SIde" Analysts work for fund that might want to buy stocks so might issue bearish biased analysis to make stocks more affordable for themselves.
Asset managements might not follow the sectors or might want to get into a sector.
Purely unbiased analysts are rare. What's in it for them is the question every investor needs to ask themselves.
That why traders tend to live and die with charts.
And example is :
1.
Bryden Teich Portfolio Manager, Avenue Investment Does not deal with cannabis stocks and can't understand future value. Rec cannabis is not legal for sale yet so all valuations are solely done on medical cannabis.
Most are similar:
https://stockchase.com/company/view/4811 Most are like these asset managers. Many are put on the spot on stocks and sectors they now very little about when they are on stations like BNN promoting their own positions.
There are some very good points and take aways here. At some point, valuations have to support the valuations.