Did the biggest US deal just mark the top?So I stepped out of the majority of my holdings at open today save for a couple hundred shares. I did so because the cries everywhere are getting too loud. Not just for OH/CL, which is quieter, but for the number of sub $100MC newcomers and early mover extractors. I feel like everyone is chasing it all in these last few tries to capture the last %10. I'm glad I made my money from VGW from $2-3 the first time. Now betwen them and LABS its getting wild.
Within the context of the broader market I'm going to step aside and see how this S&P inflection point goes over the course of everyone's earnings. I only recently started thinking these past few months in the context of the big markets and their trends.
There is such a low float on Cresco right now that if there is any pull back it will be much more abrupt. I'm trying to figure out where the support levels are and there is a lot of space between here and $12. I know the OH chart inside out, this one is a tough read so early.
What do people think of Cresco after this past week? Solid company, yes. But I have this feeling that their recent run up from a fresh listing in December allowed them to strike a deal at a price that was a very nice PR benefit.
The underlying point I'm making is the valuation for OH may be very undervalued long term, but I think it was acquired by a company using a currently artificially high stock price to prompt more attention to its new listing status.
Both companies I'm sure will succeed long term but within the next little while I think there is a lot more downside risk and a lot of headwind to get through this month.
Watching to see how last Moday's price for both companies holds up in the face of any more sector weakness. CL at same close and OH just 20 cents above.