Don’t be scared off by a change in auditor!On January 23
rd, Grizzly posted a question regarding where he thought the selloff would come, 20 or 30 cents? I was hopeful to think that he was turning a page, but it is clear that he is just a swing trader betting solely on price and, unfortunately, laughing in the face of others who have lost money here.
He asked the question about price, but it appears to me that he lacks familiarity with the associated market cap. At $0.20 he is imputing a market cap of $31.758 Mil and at $0.30, he is imputing a market cap of $47.637 Mil. My question to him would be how did he get to this market cap? What is his basis of analysis?
My guess is that he just randomly pulled a number of doubling his money since he bought in at $0.10. Just like his comments about insider trades are also unfounded: I have seen no reports of insider trading on the US or Canadian side. The last available insider trade was back in 2018.
But I say this: What if MGW was compared more closely to a niche company such as PCLO, who recently “Announces 30,000 Kg Cannabis Extract Agreement for German Market?” They have a current market cap of approx. $300 Mil. One of the big differences is that they are actually producing! However, if MGW management can actually get their act together and start producing, and lock down a comparable niche customer in Singapore, for example, then maybe similar matrixes could be used here. At $300 Mil, MGW stock price would be $1.90.
To add some level of credibility to my statements, I have previously seen many posts challenging that this stock has been shorted, asking “who would short a $0.10 stock?” To those doubters I say, look here:
https://www.iiroc.ca/industry/marketmonitoringanalysis/Pages/consolidated-short-position-report.aspx You will see that as of Jan 21, 2020, there were 32,000 shares held in a short position. FYI, you can also see the short positions held for the other Canadian stocks you hold.
The example I have presented above is but a mere overview of the type of comparisons that I have done, but as I previously mentioned, my position stands that management needs to actually come through and deliver on their promises, so that trust can be re-established. Management must have noticed that the market cap has doubled in the past few weeks, and be aware that people are watching this stock. February is supposed to be the month when I expect certain deliverables to be presented, like Riverside is ready to start producing. I hope they come through!
I am hoping for a great February, and I may thank you or hate you for selling me additional shares today at this low price!
GLTA