My Fair Value Theory;
My theory is that the blue channel is the "fair price channel" what the company should be worth, according to the market and price action. Anything outside of the channel is fair price plus speculation. The green line represents the average fair value as per how the market views the company at any given time.
My opinion (not that it means anything)
That's not to say I suggest it time to buy, we may continue to see some bearish movement until spring. The Cannabis industry now has a lot of supply chain issues to iron out. If they can Amazon the crap out of the supply chain, then we will see another bullish year, however, I see a lot of money leaving the sector, so now these companies will have to figure it out using profits. Now its time for Real business models to take action, not crazy people throwing money around like drunken sailors.
My theory is that the blue channel is the "fair price channel" what the company should be worth, according to the market and price action. Anything outside of the channel is fair price plus speculation. The green line represents the average fair value as per how the market views the company at any given time.
My opinion (not that it means anything)
That's not to say I suggest it time to buy, we may continue to see some bearish movement until spring. The Cannabis industry now has a lot of supply chain issues to iron out. If they can Amazon the crap out of the supply chain, then we will see another bullish year, however, I see a lot of money leaving the sector, so now these companies will have to figure it out using profits. Now its time for Real business models to take action, not crazy people throwing money around like drunken sailors.
Comment:
Just an observation I forgot to mention; If you look left to the rally, Jan 18/18, you will see the speculators said the company may be worth as much as 44 bucks. Fast forward to today. the company is now worth 44 bucks a share, which according to my value theory is what the market is currently pricing it at. The market has a funny way of being correct even in the long term. Looking at the whole sector, I see market prices starting to slide back into reality zones, or my fair market price channels. Be Patient, the year is not over and the Bears are not done taking the air out of the bubble.