GREY:TSTIF - Post by User
Comment by
Drrwongon May 31, 2018 1:16pm
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Post# 28106456
RE:Why does it keep dropping?
RE:Why does it keep dropping?More sellers than buyers. Volume is pretty low on this pullback, just look at today. If you multiply the volume by the 80c stock price, the value traded is quite pathetic to cause this % of SP drop.
The problem is with its current market cap, almost all institutional funds are not allowed to start a position in the company because the market cap is too small for their mandates. On the flip side, some institutional holders will now need to sell due to this very same reason.
This leaves the retail buyers to pick up the slack. Unfortunately, most retail investors will not buy something that is down 66% YTD, nor something that could lose its major distribution partner and have a potential financing risk. Most retail investors will not even bother to do work on a company with these overhangs.
As a result, there will continue be a lack of buyers near term until some of these risks are lifted. Fortunately for us longs, these stuff should clear up over the next 3mths and we should see the SP slowly move to reflect the underlying fundamentals/potential of the company after that.
As always, time will tell.