RE:RE:RE:VMD should be $6 todaySince the VMD spinoff, the $US/$Cdn exchange rate has increased by 4-5%. This suggests that the price rise since the spinoff is insignificant.
After a 2017Q3 net profit of $US 3.3 million, the 2017Q4 net showed a slight loss. This is a decline of more than $US3.3 million. One time spinoff expenses and allocating the senior management incentive options in the fourth quarter (as opposed to spreading them out over the year) were factors.
The Revenue growth from 2017Q4 to 2018Q1 is looking to be 5% rather than the expected 40% y/y projected rate.
Notwithstanding the restriction on Crawford selling more than 15% of his shares in any single month, he appears to have transferred 100% of them. No explanation. Others like him would like to move on from their historical investment but don't have the arranged trade opportunity lined up like he apparently did for his significant holdings. As the market price reaches their selling target they will unwind their holdings. This leaves a significant overhang.
A prospective fund investor knows that the thin trading means any investment is literally locked in. Thereafter any attempts to sell will significantly depress the price.
If the price were to dip below $3, there would probably be some margin calls from the recent buying. Perhaps not much but some.
Hoyt is focused on a roadshow in Canada marketing VMD's story to investors. Some believe he should be in the US building the company to develop a track record that will attract investors. Hoyt's track record is as the owner of a private company that did well when reimbursement rates were 35% higher.
In summary, VMD is a great story amongst many investment opportunities with an attractive story. The investments that succeed will be those who demonstrate they are more than a story.
This is what investing is all about. Either invest in the story knowing that some stories are not going to work out or wait for a track record and buy at higher prices.