A classic harmonic pattern suggests that ACB will close the gap at some point this year. Even if the falling wedge breaks to the upside, it remains to be seen if it can reach new highs. Personally, I don't think it realistic to see ACB rebound fully, before they've shown consistency in earnings and revenue, unless some big news catalyst will restore investor confidence. Until then, I am on the sidelines, ready to accumulate at around $7 and lower... I bet we'll see CGC at the $12 threshold at the same time, IF this plays out...
It will definelty play out! Buying at 7 is a sure promise. Good dd!
Barkworth
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@fernandochristopher, thank you. I think such a dip would be followed by less volatility and a more sustained rally. If these guys get their stuff together, the long term upside could be substantial.
leultadesse24
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@Barkworth, what do you think for 3-month hold from now? I got it @14.54 which is lose at the moment
Barkworth
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@leultadesse24, I would get out if it breaks the descending triangle to the downside. I think breaking below about $12.50 would be a bear break. But it is hard to say. A break above $14 would be bullish.
leultadesse24
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@Barkworth, Thanks alot. I had a thought since the company is expanding to Europe it'd be good for long term. what do you think about that?
Barkworth
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@leultadesse24, I’ve always been a fan of this company. I see two problems: 1) they have to restructure their business because the original first and biggest to market takes all approach turned out to be a mistake, and 2) probably more important, they are broke.
They just raised cash through diluting the float, and if they don’t land some deals soon, or double their quarterly revenue, they’ll continue to bleed cash. I fear that the 12-1 split put the float at just 100M shares for that reason. They can dilute hard, while maintaining a reasonable float.
3 months from now will be earnings again. We’ll see if they remain on track to positive EBITDA 21. Other than that, their president leaving definitely indicates change, and could possibly indicate a merger or other type of takeover coming. Still, I’d like to know what I am buying into. Right now, you’re in a gamble.
Barkworth
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@leultadesse24, I hope you got out today without a loss...
leultadesse24
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@Barkworth, Exactly! I went out quick. It was big relief 🙏 Thanks for the info you gave me. Looks like it going down hill.
Barkworth
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@leultadesse24, Brilliant. Look at that sell off. Did you read the newsletter they sent today? Downsizing and all. I'm playing on gap fills, and I think that APHA is the sleeper we need to set our sights on. Regardless, I think we're in for some red days, though I know nothing, of course... My guess is as good as yours.
leultadesse24
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@Barkworth, Great analysis. Btw do you know Valeris PLC? If you are aware I want to know what you think about it.