Examining why AMFE PPS hasn't responded to press.
Everything I'm about to state is based on a lot of study and observation of the OTC markets for quite some time now. And I strongly believe AMFE is still undervalued in a big way.
With that said, transparency is at the heart of why AMFE hasn't responded to amazing press. OR, has it?
Examples of the good and bad side of AMFE's transparency.
AMFE showed 26,000% growth Q3 2017 over Q3 2016 in the 2017 Q3 filing. This is something investors were already expecting based on AMFE stating they hit it outta the park before the quarterly filing officially came out. (Twitter)
The RotoGro partnership was also known to a certain degree based on the company telling us a publicly traded non OTC company deal was in the works for the GROZone MJ division of AMFE. (Twitter)
The opening of Snakes and Lattes newest location in Toronto is already well known due to the company issuing press and, you guessed it...tweeting about it. It's already speculated that another location will be in the works for Chicago, IL USA based on, yep...voting on Twitter.
The exclusive distribution rights for Cards Against Humanity into other territories was announced via recent press, so when a deal is officially inked, we shouldn't be surprised.
There are many other examples of the company being over transparent and clueing investors in on what's coming.
So the question begs to ask...why isn't the price reacting to such bullish news and forward looking statements that AMFE has proved time and again to follow through with?
Perhaps the transparency leads to news already being "baked in" to the price per share.
Perhaps it has to do with the stereotypical investors mentality in the OTC of buy the rumor, sell the news.
Perhaps it's the OTC Pink tier level itself, that subjects AMFE to rampant manipulation.
These are some of the "bad" things of being transparent, that often leads to the above stated opinions of why a stock doesn't react to positive news catalysts.
On the flip side...let's examine why it's good to be transparent, even if the price per share doesn't react to positive news catalysts because it's already "baked in", or if the company knows lots of investors will just buy the rumor and sell the news, or the fact that the OTC Pink tier level subjects the company to rampant manipulation.
I'd rather have news baked into the price due to transparency because it's better to be in the know than not, and a little sell off will always correct if the company is truly transparent and following through on their statements, just as we're seeing with AMFE.
I'd rather have the opportunity to buy in before news comes out based on the company offering hints of what's to come, especially when a company actually executes and follows up on hinted news. Too often companies don't follow through on "forward looking statements" and or leave investors completely in the dark.
Being transparent while trading on the OTC Pink tier level, actually gives opportunity to accumulate on dips for those who truly follow the story and know where the market cap should be, despite rampant manipulation. AMFE will likely be uplisting by the end of the year though, so this will probably help to reduce some of the manipulation.
This is an overview of the good and bad of being transparent. However, in the case of AMFE, it's very refreshing that they're transparent because the bad part of this is easily overcome by the good part.
Lastly:
In my opinion, there's a HUGE advantage of being transparent, which is the element of surprise.
A perfect example: On April 24, AMFE saw a rather large intraday move when they issued news about the largest purchase order they've ever received from Indigo Chapters (Barnes and Noble of Canada).
This caught investors by surprise in a great way. We weren't expecting this update, nor was it tweeted about or talked about in prior press. The market reacted in a very positive way, one of the larger intraday moves we've seen. And the beauty of this surprise news, was just the prior day, manipulation at its finest saw an intraday steep dip that allowed smart investors to accumulate at a steep discount.
All in all, the underlying fundamentals here in AMFE are too strong which should eventually play out in investors favor to the upside. Hold long and you won't be disappointed!
Go AMFE
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