TODAY'S MOVE UPToday's move up is no doubt nice for longs who have been pounded into the ground the past few months. The question is, is this a temporary repreive, or a change. Personally, I put the odds at 60/40 for temporary repeive, which is better than previous ratios that were at best 80/20 for continued downside torture.
The Biosteel announcement is good. This is a good product that will ultimatley help the bottom line. In the bigger picture, it is not a game-changer, but it is worth noting as a definite positive.
Would I buy this rally? No. The risk/reward going into the quarterly easily keeps me out. Generally, traders do not want to be around for news, as that breaks the risk managment protocols. Investors generally care less, as their time horizon is much longer and they whether bad news better. Personally, I don't get that, but then again, I'm not an investor. Traders have their rules and if adhered to, work well.
Ultimately, this stock will only rally if and when U.S. legalization becomes a reality. And if that reality is not realized in the near future, the company has problems as their cash burn is atrocious by any measure. The threat of dillutiuon is real imho, and that is never a good scenario for a stock.
We'll see what comes.