RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:THE BULLS ARE RUNNINGBonjour32 wrote: it certianly will not be worth 2-3 times more if the EXPECTATIONS for the following quarters do not move 2-3 times higher lol...
Let me give you an example to show everyone including you who seem to not understand that the market prices in expectations what I am talking about.
Here is an example of Revenue and Earnings expectations.. Its also going to be a linear relationship just so I dont hurt anyones brain.
Assuming its 2018 now...
2017 - 100 Rev, 20 Earning
2018 - 200 Rev, 40 Earnings
2019 - 1000 Rev, 100 earnings
2020 - 2000 Rev, 180 earning...
So we all now expect 2020 revenue to be 2000.... And if 2018 comes in AT 200 Rev, which we ALL expect... why would this be worth 2-3x more if expectations are met? Lets say we push to 2019 and get 1000 Rev... why would this go up 2-3x if we just met expectation again?
Everyone here who expects this to be the next major thing are investing as such... thats the EXPECTATION. Therefore the BARE MINIMUM necessary to leave this stock flat would be actually being the next big thing... Surprise moves the stock higher, not meeting expectation. They 100x 2019 EPS valuation is indicative of that.
Let me educate you about growth stocks in an emerging sector idiot. If expectations in 2020 are 200 and Canopy hits those expectations, then we can agree that Canopy had massive revenue and profit growth....correct. As these expectations are approached by Canopy, the expectations will rise even higher because of the proven performance. This cycle will continue until the industry matures which is 7 to 10 years out. Go study emerging growth industries and their valuations vs. Revenue. Then get back to us all and tell us how big of an idiot you are.