Very Bullish that they Raised $4.75M. MATH:
The Fuzzy Math:
When there are 104 million shares outstanding at $0.3755 on Tuesday, and then there's 116 million shares outstanding at $0.55 on Wednesday, the share price doesn't just reset down to the cost basis of only 11% of the shares. Not only is that assuming that the sturdy investor sells immediately, but that would ignore the equilibrium cost basis of 89% of the shares, where they currently stood.
Assuming that hypothetical instantaneous liquidation, with no other changes, ( $0.20 * 12,000,000 ) + ( $0.55 * 104,000,000 ) which = $59.6M. That's about only a 7% drop from the $64.0M in market cap that existed on Wednesday afternoon. Far smaller in magnitude than the 28% drop that we had today.
I would attribute the additional 21% decline as being associated with the CEO's first conference call in a while (note the sales after 1:30pm EST), combined with a global 9% correction in the marijuana sector that did actually occur. The sector that massroots is undoubtedly involved in, and entrained in.
Looking more closely, noticing today's high, even among a global marijuana short term correction this morning, the MSRT stock price actually reached the value I calculated above, which is what is supposed to be its short-term price target of $0.51, that I calculated. Exactly. Down 7%. Not Down 28%.
The long-term price target is incalculable, but given some assistance from the federal government, or explosive growth in Canada when it legalizes in a few months, is well over $1.00. We have heard that massroots has significant ties to the Canadian marijuana mammoth known as a Aphria...
Thus, it is concluded that massroots is currently significantly oversold. Anyone who buys in at these levels is slated to make immediate 20% gains. Given any fluctuations or expected recovery in the marijuana sector tomorrow, that 20% could turn into 30% or 40% increase.
