People Have Been Screwing Around In the MarketLargely because of inflation and companies who are flush with cash sitting on the side lines making production very difficult. I have long opposed all the stupid consistent interest hikes this hurt the majority of the manufacturing sectors as well financials and real estate. The huge winners were tech and especially those that could more rapidly adapt their tech to get to consumers. But no doubt there were those who did real well others who did not.
Now for those who are trying to scare people with .015 and sell dont listen to them at all. First off i dont see less than a stable near 10 million a year with BTI in fact if anything i see an increase in the revenue taking it on good faith and word by what management said. Secondly, it looks like the inflation pressures are still biting down and governments are seeing that there is softness they cant afford to keep raising rates as groceries alone are hitting people very hard and the real estate is massively down resulting in toxic debt and people most likely needing to get out and or banks needing to give longer time and excuse defaults to avoid what happened back in 2008 the housing crisis and sub prime. As a result the Feds in the US and Canada have held off on raising the rates coupled with the rise in oil the markets are on a recent run.
I saw a dividend stock i hold and bought in at $58.08 CIBC go to $47.17. I was disgusted in that i felt it should have never gone below $55 it was grossly undervalued in my opinion and i read many banks got pummeled. CIBC beat expectations last quarterly and increased its dividend per share by .03. I was salivating at the high 40s was really encouraging my Dad to buy more and was showing him how to handle strategically trading he never listens and is stuck in thinking you look at graphs and you can predict future movements...that is very tough to do. You use the long charting and see where the average baseline runs and see each year see where it is trending and pick the base price average there set the sell at that point or pick your point be it 10 or 20 percent stick to it sell and buy back or hold cash. You also pick your profit take some gains. CIBC is at $64.15 right now with higher target $67 and $71 lowest about $56 and others $62 and $64. I think $67 plus is most likely. I have 127 shares and really struggling whether i sell 27 or hold them the divie is .90 per share it is too strong in some ways. My plan was to just keep holding as i am 47 my Dad however is 77.
My brother is killing the two of us with mutual funds his TD Comfort is about 15 percent and his CIBC Nadasdaq is a bit over 20 percent...folks 20 percent is very powerful. I was 20 percent down on CIBC but that was my huge buy price my sell was $55 and because i didnt think it would fall below at the time it was trading closer to $57 strongly believing it would hit $60 i wanted that stock so i dumped 2 others losing money a real estate one monthly dividend and a bmo cover call losing money and best decision however this is where my whether to sell 27 shares comes in take some profit buy another with divie where the share value can grow more and or faster not liking many.
The whole point is this know what you hold and where the market is heading. People hammered stocks down due to the weakness in manufacturing all because of the covid effect. Initially there was a false surge where people being pent up getting government dollars were spending like no tomorrow after lockdown and that was temporary surface surge but the problem with supply and strong foundations were not there and if more interest hikes it will kill where governments want to go. The issue to raise interest to cool a dead economy where supply was limited to start in the fear that it would become too hot as to reach precovid levels in my opinion was stupid to fear even if the economy overheated. You have 0 supply you get more production but nowhere a glut as things closed and went under the supply would be sustained there was no reason to tame the high interest that way. Even if costs were rising i factor more supply suppliers needing to compete would need to drop prices and things would stabalize instead what you got is high lasting inflation on groceries and many of which the bulk products were less available and when they are they are several more dollars than before ironically when things have reopened vs going into covid. This whole thing as far as i am concerned was poorly handled. In any case it looks like in Canada the Bank of Canada (BOC)is patting itself on the backside where things look to be coming down with interest at 8 percent inflation dropping close to 5 percent (banks giving about 4 to 5 real is always several more hence 8) with most likely rate of 2 percent the target all along and the BOC stating dont expect historically low rates moving forward your .25 to .50 with long term GIC at at best 2 to 3 percent.
The planned rate cuts is mid of the coming year however i had said previously things are feeling the bite and the economy showing weakness it actually was but not to the extent of consistent "negative"although even saying something like Canadian GDP going from 3.2 to 3.1 holdinf above say a targetted 3 is great thats bad!!! If it hit less than 3 the rates would have been cut and we would have been in a recession as far as i am concerned we always were. Regardless people and their stupid "soft landing" so that was what was created and the costs of goods especially foods have gone up and our purchasing yet again down and that too on essentials.
In any case, with the overall turn ans rates not likely to be raised and most likely to be getting cut the market will only turn around in all liklihood. It is not the time to sell into stupid .015 fears the market will only rise but will likely still take its due course however i suspect more stability and then continous move up. I have as i said priced these shares .04 to .05 i expect we hit that and potential .10 plus coming year. I would love .20 plus but conservatively .05 to .10 i would add actuallt but i have said why i will not likely myself do so it has to strategically trading if we only see a small rise my sell is around the .04 to .05 so i will not buy at .03 even though my average is there .028 it would have to be .02 or less with me seeing the same value as i do now which means there cant be dilution and no off setting revenue and if there is i would have to feel that somewhere the off set will be string enough to hold a perceived .04 to .05 so i am done buying. I have enough to work with i will be waiting closer to .10 in the coming year i expect these to really start moving around the Spring solar seems season driven meaning it seems weak in fall winter stronger in spring summer from my fast and dirty reflecting from my memory on all solars i have held. Most solars are best bought under .05 as most i held seem to get there at some point or the other if they didnt go belly up...natcore (nxt) qsolar qsl both belly up i handled them wrong, egt prior stg is hammered here fell from $2.25 at one point, i also enerdynamics fell from $1.00 eht i believe was the ticker belly up i believe. Get at .05 or less target .10 plus.
In any case i would hold but find your sell price buy accordingly to it. Not likely less than .025 moving forward if .02 and i can add i will if .025 bid ask .03 no my absolutle lowest strike point is .04 that is the 25 percent minimal gain but not at all my desire. I will definitely wait until Spring before making any moves to sell.