GREY:ALEAF - Post by User
Post by
MrOptimizationon Apr 30, 2019 11:36am
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Post# 29688871
What to do! What to do!
What to do! What to do!I anticipated this correction, as I think a fair price is between 1.40-1.85 for this stock. And obviously, why would I overpay for this stock. People can praise, pump up, or sing songs of glory for this stock; but it doesnt change the eduated investors opinion.
No one is saying this stock is bad, it is just a long play. Investors then have to ask themselves, why go for a long play, instead of a short play with much larger returns. Aphria is an example of a stock that is becoming a much more appealing stock at under $10 than Alefia at its current price. Cause I can probably turn that around for a 20% gain, and still get Alefia at its current rate levels in 3-6 months time.
What I like about Alefia, is that their net loss isn't that bad relative to market cap. They should have enough cash to sustain for 5 years, given their current burn rate.
Downside, is their success is dependent on Aphria's success; being a major supplier for them. So if I invest in Aphria, if both go down, I'm in big doo doo. Also, I'm not sure what the wholesale rate they agreed to is, and how that stacks up to the development costs of the production farm. And how did they apply to a production facility license without building a production faclilty LOL.
Some serious questions, but no real major concerns/flags. Maybe I'll buy at 1.45