Here's the way I see it...
This entire sector was in such a limelight, there was such unbridled enthusiasm and expectation (a la the dot com). This caused the entire sector to all-around soar. Companies were being valuated based on other companies SP, and projections based on a borderline unknowable future for the sector. April 1st was supposed to be a huge moment for the sector and there was panic BUYING happening- people didn't want to miss out. The best companies soared the highest because investors aren't stupid. However even the best companies soared too high because we all had green in our eyes. NOTE: even though Mike wasn't claiming Abattis would have their license to grow April 1st, it was still a sector-wide landmark- the day all these companies become legitimate, or the companies they are being compared to become legitimate. It was supposed to be the day we were all to have our dreams confirmed, "This sector is REAL, this valuation is REAL"...
Some external (economic) events happened to land March 19th forcing many investors to decide which of their holdings had to be cut. All markets suffered gross declines however most recovered. Abattis approached recovery but consider this strike #1 to less knowledgeable investors regarding Abattis's upwards momentum.
By mid day March 21st Abattis's share price had recovered ~60% towards it's March 19th peak when the Canadian judge offered an injunction in the law temporarily allowing the old system to more or less continue in parallel while the new industry found it's balance. This prompted a sector-wide decline, driving Abattis down roughly 30% again. This was a huge blow to the industry and castrated much of the enthusiasm investors had for this new sector. Consider this strike #2 to momentum.
The injunction set the stage for the sector's BEAR momentum. Whereas before investors were able to make lofty projections and cement it in some sort of stone "The Injunction" reminded investors that they have no idea what the industry is really going to look like one year from now. The laws are changing as we speak and we never really know which way it's going to go. All signs point to legalization, but HOW?
"The bigger they are the harder they fall", Abattis was approaching overbought territory, having increased many-fold in a short period of time. Strike #2 hit hard, causing a steady downward momentum for Abattis. Not even Mike's optimistic press release was enough to keep us afloat.
March 27th CANN: Advanced Cannabis's trading was halted for two weeks. This news rocked the industry showing investors the first signs of the trouble that everyone was expecting to see from pink sheet penny land. Abattis, who was still reeling from the injunction just got smacked by further sector-doubt. End of day showed another 20% drop for Abattis compared to the previous day's 5% drop. Strike #3 and Abattis's SP is looking quite unstable to investors.
Despite this it was Abattis's time for SP growth again. Compared to the rest of the sector it was appearing OVERSOLD. Maybe mix in a little bit of pre-April 1st excitement left over from those who weren't keeping up with the news, and Abattis regained over 30% in one day. This IMO, was the last high Abattis has seen.
Remember that at this point Abattis's valuation is based on the sector's valuation, nothing more. Without a license some people still saw Abattis as a castrated company, and the sector in general is still just trying to find it's new footing. This is the only thing still keeping Abattis on it's downward trend. There has been more halts causing more uncertainty about the sector. Abattis has missed the boat on being the first publicly traded licensed company, which in this reality of the sector turns out to not be worth as much as everyone expected (TWEED has been bleeding pretty bad, too).
Abattis is the same company it was when it was at it's peaks. Better, even. It is however the entire sector around it that has been changed and the investor attitude towards the sector. Abattis may be a diamond in the rough, but that doesn't mean it will trade at $2.50 again any time soon.
That price was then. That was when unbridled optimism ran the market. Now we are seeing pessimism. Soon we will see real investors projecting real valuations, Abattis and the sector around it will be a real stock. The gold rush has passed now we're just investing in a real company. With this in mind, IHUB, what is Abattis truly worth?
