ACB, right into my target box.First buy box reached. I had reserved an amount for this moment, and I have divided that amount into three baskets. The first one filled at $1.15. The next FIB level down is around $0.89, but this may very well bounce at the $1 psychological level. A third will be purchased if it drops into the box below $0.80.
At the moment, judging from a fundamental perspective, ACB is trading at fair value. I am also convinced that ACB will make a comeback at some point. What we need to understand, is that it will definitely run out of cash if the market doesn't pick up soon. There is also the slight possibility that ACB would attract a strategic investor, but I would expect such an investment to provide perhaps $500M, and a deal would possibly look similar to Auxly's recent strategic investment by Imperial Brands. There is no telling me that a broad range of conglomerates isn't watching the cannabis industry with anticipation, but there is no telling whom and when they will act. A little of topic here, but my point is that if you do choose to speculate on a bounce, you should understand first of all that it is very speculative, and you should prepare for news about share dilution to raise more cash once the current prospectus becomes exhausted. Yet, a lot can happen before that time.
It would be beautiful if all three of my orders get filled. But it would also be beautiful to see a few months of solid rangebound, sideways trading. I am expecting at least another disastrous quarter, and thus I am in no hurry. If it would suddenly turn bullish, there is still time to enter on a buy signal...
Ultimately, I have a stopp loss at $0.40. Lets hope it doesn't come to that.
