FormerXBC Inc XEBEQ

RE:RE:Volume

[AlwaysLong683]

babedinkleman wrote: As for what they paid for stuff and book value....much of what they bought was likely overpriced due to the green hype at the time so don't put much faith in book value.  And you just know the pipeline is all but collapsing in my opinion.  Nurturing over $150 million a year revenue run rate is a pipe dream in this environment.

My take is that when the clean energy / carbon footprint / global warming theme really caught on with the investment community, investing entities bid up the prices of these stocks far too high given where these companies actuallly stood at the time, including whatever near-term potential said companies had.

I suspect the move to renewables (which is inevitable in my view) will be much slower and take much longer than many bulls in this sector think it will. As a result, the share prices of many clean energy tech stocks along with others in this sector were likely going to take a big hit as share prices returned to the reality of the present and short-term future, so the pendulum is now swinging in the opposite direction.

Ironically, where were investors in common stocks making a killing in 2021 and so far in 2022?

Fossil fuels.

The suspected glut of oil and gas due to COVID did not sustain itself and demand for oil and gas is now high, thus the big increases in oil and gas prices and the big quarterly profits and cash flowing into Canadian oil and gas produer companies that follow.

If you bought shares in many renewable names early on before the business community hype started and subsequently watched the run up in share prices and sold once share prices were getting out of hand, you likely made big money on those investments. If you joined the party after the buzz started and prices on many of these same companies had already risen from penny stocks into names trading at a number of multiples higher and held on, you may in fact be down a lot in the very same names that the early birds made a lot of money on.

There will be long-term winners in the renewables sector, but there will also be many that go under or otherwise disappear, remain overvalued, or get taken out at a disappointing price. Though obvious, I think many investing in renewables (or any "new" sector) often forget this.

GLTA