Silliness and depravityOh Stockhouse. You purveyor of madness, name calling, and absolutism.
Might go to low $0.20’s... yes, true. Broke some anchors recently.
Might bounce... yes, true. Looks due to rebound.
Let’s be fair to each other, both (and everywhere in between) have a certain probability. When probability is not = 100% it becomes an opinion (and because we are talking about an unknown outcome, this opinion = a guess). Stating factual reasons for both is the healthy way to look at this.
Example.
The negative... there is selling pressure... looks like discounts into the realm of “undervalued” and maybe even “significantly undervalued” are being created... trading activity is depressing the price of things (Ravi, is that you? MMCAP, is that you? Scared retail investor, is that you?). This is compounded by insanely low trading volumes. It could certainly go lower, especially due to the wild card Anonymous trading. Some might say, they feel like they are holding a bag (the horizon looks grim, and there is room for this to get worse).
The positive... Eve is skirting around (+/-) what some my deem it’s valuation floor. And this is not including what it’s valuation should be if the expansion is approved and we can sell all that product (~50k+ kgs is probably why you are buying in at this juncture / venture stage, but there is likely an eventual positive bounce in valuation even if Eve only delivers on the lower end of that number). Heck, if you exclude debt (which is very low), just the value of their assets alone (physical greenhouse, licenses, IFRS inventory) is nearing the value of their cap right now. This could be seen as a great opportunity to buy in, buy more, maybe average down... or just wait on what you bought to get back to (and above) the price point you are averaged in at. Some might say, there are many bags to be realized (we are at the floor and the long-term outlook is very positive).
There is risk to be sure, but also opportunity. They go hand in hand.
And, the Ravi’s and MMCAPs of this situation will certainly keep the price down (perhaps what you feel to be below fair value) until they are out of the equation. Keep or divest (or churn on the dips and peaks)... your call based on how you see this playing out.
But, I am long and am looking past where it is at, to where I think this will go. I am still on the positive, even if it does dip further in the short term. I still haven’t seen reasonable information or discussion that would tell me something has fundamentally changed to the negative in terms of why I bought some of this in the first place... or disqualifies the opportunity (versus risk) I have assumed. Of course I must disclose, that this gamble (why I remain positive) is based on the assumption that expansion will get HC approval and they will really crank up the revenue engines in the next 3-4 quarters... and continue to establish revenue floors (guarantees, contractually) based on distribution agreements domestic and international.
Look. Also. Calling someone names because they are on the negative or positive side of guessing where the price will go is silly and childish. Please stop. If you want to negate or combat an opinion, say it with facts... not abuse. Someone will always be right, eventually... better to err on the side of probability and logic, than name calling (because if you called someone stupid for their legitimate guess and they turn out to be right... who is the jerk / stupid at the end of the day?) As long as there is reasonable support for an opinion let’s not be mean to one another... and even then you don’t need to resort to name calling (don’t personal-attack, attack the details and de-legitimize truthfully and factually).
PS... also remember that many are here because they are invested (hopefully everyone actually). You can’t completely fault someone for being positive as the starting point of a conversation... because the premise of the investment is an assumption of a positive outcome. People (who are long) are not buying Eve under the assumption it will fail!? So, when you respond, contextualize this into how you respond, to be fair to those on the receiving end. Allow for at least some degree of positive, but if necessary, curb it with facts (risks) and realism.
Peace, long Eve!