Weekly commentWhat a week ! The stock went to 1.75$ before retreating to 1.25$ coming from 0.70 cents a week ago !!!
Remember that there are less than 4 million free trading shares outstanding, shares coming from Axe-Terranueva's merger last November.
Be prepare for such a roller coaster swings for a while.
I think - it is my personal view on this subject - that the stock has been shorted yesterday by people who were thinking of an over-evaluation of TEQ's share price. Maybe they were right, maybe not.
There is so many things going on actually with Terranueva that it is impossible to put a fair value on their market cap. I wrote in my last post that the three licences they received on February 22th from Health Canada triggered many future significant developments.
If I agree with the shorters that the stock was looking overpriced on Thursday, I must confess as well that it might be a great bargain in a few days from now ...because so many things in the pipeline.
Don't be fooled by short term movements of the share price, have a long term view on Terranueva as a core investment. This company will become a major player and the reference in the cannabis industry.
Finally, if my hypothesis is true, be prepared for another exciting week because the shorters may be forced to recover their shorts by chasing a moving higher stock with no sellers !