mnovo

HEXO - and some more GANN insights

NYSE:HEXO   HEXO Corp
Request and some Gann tidbits

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@mnovo you are aware of the 4:1 reverse split coming? It was just approved today I believe
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it was so helpful, thanks for sharing
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Beautiful! I _high_ly agree here.
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mnovo janfoux
@janfoux, i see what you did there. ;)
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Its probably a good time to get in. Hexo has good potential. I regret selling my positions at 0.7 :(. They have a contract with a beverage company to make thc infused beverages. This will boom next year with Biden coming to office as well. I'm eyeing this baby at below a $1
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mnovo nometalgear
@nometalgear, the boxes do seem to be checking off yes
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@mnovo, I forgot to mention that $1 is CAD (on tsx). so roughly $0.9 USD which is similar to what you're saying.
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What does the 4:1 reverse split actually mean for shareholders? How will it affect the share price and valuation?
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mnovo HolbrookeGrant
@HolbrookeGrant, not sure how in-depth you are asking your question but in layman's terms. if you had 400 shares at $1 each, you will end up with 100 shares at $4 each. after a split, there is usually a pullback 40-50%. people start buying again after a while but let's say you are trapped at $4 and price is a $2 now. emotionally it looks like an uphill battle to get your money back to just break even. splits usually happen like this to attract more money to a losing battle and often because the stock went below $1 and the exchange gives the asset 90 days(?) to get their stock back up. if they can generate enough attraction to the stock via bullish news, they offer a split. further dilution occurs if there habitually do splits in the future. another scenario is like TSLA where the price is so high people start to think the stock is too expensive. TSLA did a split and after the pullback of about 45% is started to trend back up. in that case, the stock price was reduced and you ended up it a hiher share count for the same investment. clear as mud?
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