Despite all these posts about how it is going to break out now, then now, and then now, it has never once really broken its downtrend, after peaking at 10.38, so very extendedly so. Realistically, we're about the see the third Death Cross, and the price recently bounced on the 300EMA, then on its long time psychological support/resistance of $7.00.
There is a lot of room down before this may become a bullish play again. 3.5 billion $ good will on its balance sheet. Lots of debt, operating at a loss. This is not a company that'll do well in an economic downturn.
Another thing to keep in mind, is that it had a float of roughly 800 million shares when it peaked at 12.50, so long ago. It recently peaked at 2.2 Dollars lower. Could this be because of the increased float? She's slower to move up now, have you noticed? Anyways, if the opposite is true, we'll be looking at $4 or lower, once the industry bottoms out. I have been wondering, should I play on the "deals to be announced within 6 months". I'm thinking investors are looking for equity deals. Selling CBD oil to which ever company is certainly not going to change much, fundamentally.
To be honest, ACB was my favourite play. But then dilution, goodwill and debt set in. ACB is still my bet to become a top player in the industry, but as a company that'll be struggling to survive for at least another year or two, I doubt that it'll produce a very interesting stock price. Besides, the float is so extreme, that when volume increases to about 100 million, the price will only move about 8 to 10%. You see this every time. It opens 4% up, pre market, then drops at opening. Last rally I just bought that opening dip, and closed my position at EOD. Didn't lose a penny on its downtrend.
PS. Did you know that NRTH is consistently posting results with positive EBITDA? This is a very interesting company, and it is about to accumulate again. No debt, and profitable. When SPY dropped hard last week, NRTH didn't budge a penny. Is that a coincidence, or is this a fundamentally strong company?
My 2 cents.
There is a lot of room down before this may become a bullish play again. 3.5 billion $ good will on its balance sheet. Lots of debt, operating at a loss. This is not a company that'll do well in an economic downturn.
Another thing to keep in mind, is that it had a float of roughly 800 million shares when it peaked at 12.50, so long ago. It recently peaked at 2.2 Dollars lower. Could this be because of the increased float? She's slower to move up now, have you noticed? Anyways, if the opposite is true, we'll be looking at $4 or lower, once the industry bottoms out. I have been wondering, should I play on the "deals to be announced within 6 months". I'm thinking investors are looking for equity deals. Selling CBD oil to which ever company is certainly not going to change much, fundamentally.
To be honest, ACB was my favourite play. But then dilution, goodwill and debt set in. ACB is still my bet to become a top player in the industry, but as a company that'll be struggling to survive for at least another year or two, I doubt that it'll produce a very interesting stock price. Besides, the float is so extreme, that when volume increases to about 100 million, the price will only move about 8 to 10%. You see this every time. It opens 4% up, pre market, then drops at opening. Last rally I just bought that opening dip, and closed my position at EOD. Didn't lose a penny on its downtrend.
PS. Did you know that NRTH is consistently posting results with positive EBITDA? This is a very interesting company, and it is about to accumulate again. No debt, and profitable. When SPY dropped hard last week, NRTH didn't budge a penny. Is that a coincidence, or is this a fundamentally strong company?
My 2 cents.
Comment:
The current valuation is interesting, IMO.
Comment:
US$6.80
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