CANNAINVESTOR Magazine U.S. Publicly Traded October 2019 | Page 168

122

Technical

Analysis

of the United States

Cannabis Market

Beleave states that they are “bridging science and tradition to bring you remarkable cannabis products.” While their ambitions are in the right place the share price has been on a decline for a prolonged period at the time of this article. What could have possibly led to such disappointing results you ask. Well, there are some things we can look at from a fundamental perspective that can be mapped to a chart for a better understanding of what occurred.

Adding events to your chart can help you identify key milestones for companies that have occurred. In the case of Beleave, we can see when their split occurred and the price action that followed. Fundamentally speaking when there is a stock split whether it be forward or reverse nothing changes except the number of shares and the share price which still work out to be the same market cap or valuation of the company. Typically, there is some implied sentiment around splits, however. Traditionally, when a companies share price becomes what they deem too low companies may reverse split the shares so that one share has more stake in the company thus increasing the price per share in hopes of bringing back more volume and to reflect the current prices of its peers in the space. This can be sometimes viewed by investors as a negative thing. However, in the case of Beleave the opposite was true. They did a split to cause the share prices to decrease. Typically this happens when companies shares have rocketed and the price per share has become exponential in comparison to its peers in the space. For Example, if Tilray would have announced this type of split as it approached $300 per share it would have made sense.

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Beleave Inc. (OTC: BLEVF)

Note: Chart uses CSE: BE - the same company