RE:RE:RE:Unwarranted Drop In SP
APieceOfThePie wrote: Thanks for your opinion. I dont understand it as I said I’m fairly new to investing so have no idea what a fibs retracement is. I do know that if there were technical indicators indicating that the SP had runnup way to much then their would have been articles written available for reading stating this. I dont believe that the price was run up to high.. I think today was a complete joke...They beat earnings estimates.. 10% drop because of a 6 cent miss in earnings per share is all i see and that is ridiculous. What really pisses me off is I remember in October when it plummeted people were posting things saying how over valued things are and all this other garbage and then it ran up over 100% while the same people said it never would again. I start to think of that old saying “even a broken clock reads correct twice a day”. Maybe im rambling but i dont believe the entire market missed aome technical number that showed this drop being warranted. Not a chance
There was no big technical indicator, I am using the fibs to find a price where I will get back in and possibly even back up the truck.
The real indicator is that the company has a 1.4bil (now less) market cap and is only bringing in 27mil/quarter, yes this will increase as they expand construction and their sales will increase as more provinces come online. The valuation is based on expectations of growth, the growth story for all pot stocks in canada is not great at this point, black market still far outsells the legal market. And the canadian market is quite small and there are lots of players.
I think the real winners going forward are companies operating in the US and I've been moving most of my investments into low cap companies that do retail in the usa. I think that has lots of potential.
OGI still has lots of potential, they produce at very low cost which can give them an edge if they decide to lower prices to take market share. I would actually like to see that happen but only once I get back in at $8.23. Don't really care if the uplist, don't care they didn't make a profit.
Schor