GH the $6 Teeter - totter, under the sword of covid-19
Going to be frank.
The world has hope. Two covid19 vaccines are currently approved for use in US and Canada. More vaccines currently being tested.
Countries are racing to reach herd immunity. Herd immunity is when 80-90% of population has antibodies which can fight off covid19.
Realistically, people over age 40-50 and who have pre-existing health conditions are those who are most at risk if they were to contract covid19.
There's approximately 22 million Canadians who are at serious risk of 38 million total.
Feds say they have secured 80mm doses. If we require 2 doses each, Canada can vaccinate 40mm citizens.
Country should be able to provide vaccines to everyone who is willing to take them.
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How does this impact GH?
Should vaccines work, and life shifts back to some form of normal, GH shares can move up $2-4 from here.
Should virus mutate and find a way around vaccines, GH shares could fall $2-3 from current price.
So, yes, GH undervalued if the vaccines work as expected but in the lesser likely scenario GH could be overvalued if vaccines are ineffective.
I would guess odds of success are 90% while odds of failure 10%
I hope we come out of this on the winning side of the wager. No long-shots for me, thanks.
Said it before, I would rather be buying shares at $10 in a virus-free world.
Great Canadian Gaming taken out for around $2.5B cdn and $1.3B in debt. That's a pretty big wager that this pandemic will pass and we'll be drinking beers with Kasking at one of Gamehost's properties.