Retail Investor's Perspective
The root source of the bearish sentiment may be multI-faceted; in other words “all of the above” and perhaps it is as simple as there is a finite amount of existing and growing investment dollars and the more companies that are listed the less money there is to “go around”. With the newer listed companies there is the greater potential to make exceptional ROI of course but that comes with the risk of uncertainty with any new company (and not all new companies are of the same “quality”).
Ecoforming has shown us that the Consolidation Curve cannot be avoided and just a review of the headlines daily confirms this whether it being outright M&A or joint ventures and partnerships (which often in time lead to an M&A). A very recent example can be found in our May issue’s article where Laguna Blends (CSE:LAG; OTC:LAGBF) was referenced and was not the first time we have brought attention to this positive revenue company. LAG acquired Isodiol International Inc and Laguna subsequently announced it will be changing its name to Isodiol International Inc and will commence trading under the ticker “ISOL” on the CSE. Look at the revenues and market cap to see if ISOL is potentially a hidden gem.
One could look at the CANNAINVESTOR Magazine top stock picks for companies to at least short list for further consideration. One of the lists is driven primarily by descending quarterly revenues. It is surprising how many companies have low share prices, relatively low market caps with low to reasonable public float (outstanding shares) and excellent increasing revenues. In the bearish market sentiment that took hold when Bill C-45 was introduced there are companies that may be undervalued and these companies often appear in the CANNAINVESTOR Magazine Top Stock Picks, Stocks to Watch lists, and in articles. There are some that believe the market decline commenced in November when the circuit breakers were first triggered. That clearly is not the case as the index overall rose to a new high in April 2017.