RE:RE:RE:RE:RE:RE:Stick to the plandog4money wrote: If these guys in management are so excited and thrilled, why are they not buying shares in the open market.
Microcap stocks are high risk and performance doesn't necessarily have anything to do with management. Case in point is the biotech microcap market we have been in. It is not a market for retirement money you don't want to lose:
Worst Biotech Bear Market On Record The Sub 200M market cap bracket has seen the largest decline since 2/8/21, with an average drop of -86% and a median of -93%. Companies in the 200M-500M range lost over half their value since the peak, with a median decline of -79%.
We've been in the worst biotech market in history driven by 40 year high inflation and an interest rate shock. Some are worried inflation could still come back as interest rates ease. There are wars and a pandemic. The largest war in Europe in 70 years is still underway with no signs of letting up. Putin is nuclear armed with control over the second largest oil exporter in the world. Ukraine is a key bread basket for the world. Israel is at war now and it could broaden in an oil region and draw others in. With active wars like these there is the risk of world war as noted by the former manager of the world's largest hedge fund. China is watching Taiiwan for an opportunity. The Red Sea is at risk:
MAJOR SHIPPING DISRUPTIONS IN RED SEA DUE TO HOUTHI ATTACKS Ships can be seen fleeing due to recent Houthi rebel attacks in the Red Sea. This major rerouting of ships around the Suez Canal is costing billions with leading companies, including BP, Maersk, and Hagan-Lloyd, all diverting ships to the Cape of Good Hope. Rerouting is causing at least 10-day delays, affecting 17% of global shipping volumes and impacting supply chains. We have also suffered the largest pandemic in 100 years that shutdown the global economy. It is actively mutating and people are letting their guard down not getting vaccinated. The risk of longCOVID is cumulative with each infection. We've been through the Great Financial crisis which we never really recovered from and COVID has made worse. The global economy was the old, frail man who got COVID and now ominous numbers are lining up at food banks. Life expectancies are declining. The US may be on the verge of a Trump dictatorship. Political stability has been lost in the US with insurrection and talk of a potential civil war. 2024 is a pivotal election year in the US and bad actors around the world would like to see the US fall to dictatorship undermining the Western alliance.
Beyond the macro risks a microcap is subject to many potentially catostrophic specific risks. Oat prices have soared in recent years with drought. There is a risk of crop failure hitting CZO as global warming may create new risks. Dependent on a major client now under new management and a streched consumer what if that client reduces the active ingredient or substitutes to keep prices low as a form of shrinkflation for stretched comsumers in the current economy? What if stretched consumers switch to cheaper brands as they try to feed their families? What if PGX takes 2 more years to scale to 100L and needed significant money? Given 90% of Phase I assets ultimately fail what if the avenanthramide drug fails? This is an exploratory trial not a guarentee.
We live in a high risk world and microcaps are high risk themselves further creating uncertainty. Its not a place for retirement money or money you can't afford to lose. It is speculative.