Blueboots wrote: Great post. People have short memories. Both Canopy Growth and Tilray had debenture offerings in 2018.
Canopy announced their offering in June 2018 and the investment by Constellation was announced in August 2018.
https://www.newswire.ca/news-releases/canopy-growth-corporation-upsizes-and-prices-offering-of-convertible-senior-notes-685651732.html
Tilray announced their offering in October 2018.
https://business.financialpost.com/pmn/press-releases-pmn/business-wire-news-releases-pmn/tilray-inc-upsizes-and-prices-offering-of-us450-million-convertible-senior-notes
I personally view the negativity as a short attack. It was rolling on a high, shorters borrowed and sold assuming it was going to drop. When it kept rising they look for any news they can spin into a big negative. People panic sell and the shorters get their outcome.
foxxy113 wrote:
1.) News release, Convertible Debentures - Thought " Oh no, more dilution! Oh No, Share Price will drop!! Gotta sell even at a loss!!
Reality is , other companies in this industry have done so with little to no effect on sp. Just because It`s Ballsy Aurora who has bore the brunt of all things negative in the industry , one little ripple and people run around like the video I just posted.
2.) Your thoughts are, "SP is going to tank! Gotta sell on open ! "
Reality is Then all the bashers show up by now sure as sally as I`m typing this - and reinforce negative thinking . Our brains are wired to lean toward negative as it is a primal survival instinct. To go with your gut sometimes is the right answer. Sometimes not. If you are Long , Or a combination trader , You should already know that patience over a period of time ; or knowing the charts to a degree will help - but not fool proof your trading. Stop losses are used to prevent further erosion , mainly for day traders. Long holders , no risk = no reward. If you don`t have the stomach for it , buy into blue chip dividend paying stocks. Stick aroung long enough , this will be the first company to pay dividends in this sector. The business model is there.
3.) Those who fall into the negative cycle and become a victim of it should not be trading these types of stocks. Selling at a loss is OK if for tax purposes. Selling at a loss for no reason other than a ripple in the pond means if you are a long , this is par for the course , average down when you can. If you are a long and panic sell, you were never a long to begin with. A true long stays the course and keeps his hands and feet inside the ride at all times. If you can`t do that , You were never a long. If You are a Combination Trader, You already know the game. Those here that come across as passive aggressive but stay on the boards in both good times and bad are exactly a combination trader. They have a Long , and Short Interest at the same time. Mainly to increase their positions ( load up on shares when the price drops a bit ) so they may sell in an effort to not stay out completely, but to buy back what they sold plus gain shares for the next run up. Short Traders have the riskiest position of all. Essentially , they borrow shares from their broker, sell them immediately , wait for the price to drop, then buy back in at the lower dollar amount , gaining free shares and free money , of which they pay a percentage back to the brokerage . That postion has a defined timeline from the broker for repayment , and the desperation in their posts reflect that . If they don`t cover in time , they are penalized and lose money. Sometimes , alot of it.Those short traders are the ones that show up here in times like these and only appear when the stock is under perceived persecution. That`s when the bashing starts. Don`t be a sell-off Sally.
In a nut shell. Convertible debentures are not a bad thing. It is saying , "Believe in us and you will be rewarded". Given this stock has seen more than it`s fair share of volatility in the past , and weather beaten retail investors begin questioning their own intentions. We all like calm weather. Even in the eye of a hurricane, there is calm.You just have to see it.
Good luck to you All.
Fox , staying in the foxhole :)