The next FIB level down is a dire one, that we really should be hoping to see. But if it comes, it is $0.49, and I am placing my GTC limit order at $0.55, just so that I don't miss the bottom.
We are currently waiting for SPY to choose direction, but with COVID-19 likely out of control everywhere very soon, there is very little left for the bull thesis. Don't forget, however, that cannabis - like biopharma - is disruptive to the market, but we will only see performers with strong fundamentals break upward, leaving the garbage behind. ACB is highly speculative, and its fundamentals are very weak.
Again, my stop loss is at $0.40. If it breaks below that, I think it is time to draw concusions, and avoid the permanent loss of capital. To be honest, it is time to draw conclusions already now, but we can't ignore the fact that ACB's revenue is second only to CGC. CGC is also in shambles, and while it enjoys slightly better fundamentals, it is reasonably overvalued, offering limited abilty for growth. The upside is always where the risk is. There are signs that the Canadian cannabis market is picking up pace. In the meantime, ACB is cutting cost, restructuring, etc. So regardless of the risk, there is a chance that they will turn this around, and the bounce will be epic.
My 2 cents...
We are currently waiting for SPY to choose direction, but with COVID-19 likely out of control everywhere very soon, there is very little left for the bull thesis. Don't forget, however, that cannabis - like biopharma - is disruptive to the market, but we will only see performers with strong fundamentals break upward, leaving the garbage behind. ACB is highly speculative, and its fundamentals are very weak.
Again, my stop loss is at $0.40. If it breaks below that, I think it is time to draw concusions, and avoid the permanent loss of capital. To be honest, it is time to draw conclusions already now, but we can't ignore the fact that ACB's revenue is second only to CGC. CGC is also in shambles, and while it enjoys slightly better fundamentals, it is reasonably overvalued, offering limited abilty for growth. The upside is always where the risk is. There are signs that the Canadian cannabis market is picking up pace. In the meantime, ACB is cutting cost, restructuring, etc. So regardless of the risk, there is a chance that they will turn this around, and the bounce will be epic.
My 2 cents...
🅱🄰🆁🅺🆆🄾🆁🆃🅷