Post by
malx1 on Dec 08, 2022 1:33pm
Smells like Accumulation 🤔
There are three diff entities currently accumulating GH. Volumes are small, bidders are patient and one of them is GH's NCIB broker. While recent price action doesn't look exciting on the surface, what continues to take place is a mopping up if weak hands. Weak hands are people who hold respectable stakes, likely through an investment advisor or in their self directed accounts, who all have a staring problem. What are weak hands busy staring at, you ask? Charts. Lines on computer screens spanning 1, 2, 3, 4 and 5yrs. They see a flat line or a sinking line and use that as a primitive signal to exit the stock. Big mistake. As the share price flounders, the business is getting stronger with each passing month. We have duscussed many times the intention of GH to rebuild its balance sheet prior to dividend hike. The rebuild of their balance sheet is taking place right now but you cannot see it on a stock chart, it's in the financial statements. Physical improvements to the properties are complete, money spent, patrons happy; now it's time for GH to repay the money smartly borrowed to conduct a brave capex plan during Pandemic Lockdowns. The heavy lifting is done my friends. Now it's the old "hurry up and wait" scenario that unfortunately not all investors can visualize because they are too busy staring at charts and reading technical analysis authered by bots. The smart folks are the ones sticking around through the tough times and they know what's in store. Winter and spring may be choppy but by the end of 2023 I think we will have the makings of a full recovery for this business and province. An idling share price indicates consolidation. This is where the impatient people with staring problems are weeded out, they are weeding themselves out. Lesson of the session: don't be a weed
Comment by
anjz661 on Dec 14, 2022 9:03pm
Yeah, this is definitely a long term play. The dividend is a welome bonus.