Made it to FLA. ROX is trading like a female animal in heat. "She's" a little crazy, and everyone is circling waiting for the right moment to jump in.
I believe the secondary overhang will be forgotten in the run-up and excitement to ROX's expected record setting Feb Q. Momentum investors won't even be aware of it. We'll see some crazies showing up on the board predicting $3 or $4.
So I believe traders are salivating in anticipation. ROX will breach it's previous high, on record setting revenues, case sales, and it likely will be GAAP positive. I'm not predicting a penny; just GAAP positive. Their balance sheet cash position will even be stronger than just announced. Inventories will probably be way up. The arrangements Jeffersons announced with a distiller may be expanded upon.
It's been their track record YoY for years now. Why should we expect anything less?
Like you okaly, I can't imagine where the bottom is going to settle. What I do know is a lot more people are watching ROX from a long term investment point of view than ever before. It's the clash between traders and "longs" that add to the volatility. I have my trigger points in place, but I don't know if we will ever see them.
Remember, there is a flip side to a capital raise. It's not all negative. The knee jerk reaction is that it is a desperate move. Lot's of people know there are a lot of exciting things ROX can do with the capital raise. It's not being done to "keep the lights on". ROX is expanding right in front of our eyes.
They just don't pre-announce everything they plan. In fact, they hardly announce anything at all. But the company is growing, and being confident FROST isn't going anywhere, more and more people are going to be placing long term bets on him since he has already gotten the company this far.
It will be very interesting to see how much resistance there is as it goes down and how and when some people start scooping up shares they perceive to be at a deep discount.
