RE:RE:Time the market, follow trend and trade this sector only. I look at the whole sector and don’t like what I see. Reckless, out of control mediocre to incompetent managements destroying long-term shareholders with dilutions. In most cases when the companies do reverse split and lose their value again, the old shareholders rarely recover their money and making a profit becomes a nightmare. Not the time for long-term shareholders yet. Unless you had bought in at very early stages when the sector was legalized.
The entire sector is not viable at this stage. Taxes, low margins and huge competition/glut are the main issues. Everyone is hoping for the US to open up. At this stage, this sector is like a casino where the odds are against the long-term investors when the only strategy that the managements knows is the dilution and buying and overpaying for money-losing companies and then writing them off. This model did not work in the past and will not work again. This entire sector is not investor-friendly and the managements are first loyal to their own personal interest and that is their big salaries. You will not see the top management taking a wage cut or no salary if they are losing money. If they are so committed to the companies then why don’t they make the personal sacrifices?
I don’t buy there is talented management in this sector yet. Especially running the Mickey Mouse operations those are burning cash to generate tiny revenues and their only hope is that someone will buy them out.
Maybe I am a bean counter because I make my investment decisions based on the financial results of a company even though I am not an accountant. Anyone who does not know how to read a balance sheet and is investing in the stock market has blinders on. Learn to read the balance sheet instead of wasting your time on the spin and hype of the management.