Updated
ACB Accumulation
While I am almost certain that there is more pain ahead on the earnings front, at the current valuation, ACB is trading with a market cap this is almost in line with their fundamentals. I would say a market cap of just around $1B would be fair value, while it currently trades with a market cap of roughly $1.4B.
ACB has my interest again since they are cleaning out their closets. Together with APHA, these guys remain the assets that have the most potential for a strategic investment or merger, and in anticipation of institutional money returning to the space later this year, I'm thinking ACB will have a lot of upside. Investors are looking for confirmation, perhaps a good earnings call or other news to send the stock higher and justify faith in positive EBITDA FY21.
We are looking at a falling wedge, with decreasing volume. I'm considering to accumulate shares in the green zone, or alternatively buy in to a bullish break of this wedge. The latter is the safest play. I haven't yet decided if I trust these guys again.
ACB has my interest again since they are cleaning out their closets. Together with APHA, these guys remain the assets that have the most potential for a strategic investment or merger, and in anticipation of institutional money returning to the space later this year, I'm thinking ACB will have a lot of upside. Investors are looking for confirmation, perhaps a good earnings call or other news to send the stock higher and justify faith in positive EBITDA FY21.
We are looking at a falling wedge, with decreasing volume. I'm considering to accumulate shares in the green zone, or alternatively buy in to a bullish break of this wedge. The latter is the safest play. I haven't yet decided if I trust these guys again.
Note
Actually, I'm going to stay sidelined. There is a Bullish Crab harmonic pattern in play that suggests a gap fill if we don't get any catalysts to drive the price.Trade with caution, everybody! This beast has taken enough of our money.
🅱🄰🆁🅺🆆🄾🆁🆃🅷
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
🅱🄰🆁🅺🆆🄾🆁🆃🅷
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.