Most DMAN investors understand this. But there will be some with sizeable positions that are hoping and praying that the Q will produce a big spike in price so they can claim their expected profits.
When those expectation are not met, the resulting sell-fest will benefit those of us with the patience to let this start-up get going.
I want to see it at $0.50 next week, just like the next guy. But the smart money is betting that once they get all their products lined up and their sales staff up and running, we'll see a slow trickle of news pertaining to these efforts, and then see that trickle turn into a stream of news as we begin to see hyper growth take hold.
Once Price to Sales ratios kick in, we'll be looking at numbers that investors will use to determine current value.
$10M in sales would translate into roughly $0.08/share with a 4x growth factored built in.
$50M in sales would translate to a $0.43/share price with the same 4x growth factor.
These numbers do not take into account investor enthusiasm, which is sure to cause spikes. If you're smart enough to play the spikes and not get burned, then God Bless! I'm just going to hold on until they're the hottest little company in the CBD space and everyone wants my shares.
And then I'm going to save a big pile of shares because we all know that their eventual intentions are to return money to shareholders in the form of dividends, just like their former company does and has done for over a decade.
1,000,000 shares that cost only $9,000 at today's price, will spin off $100,000 per quarter when they pay a $0.10/share quarterly dividend.
11x every three months on some extra shares you just have lying around.
Yeah.
