CV Sciences Inc (CVSI)

[TimSaysMakeMoney]

Correct. Speculation and fear of missing out is what drives a lot of stock price movement. The current low price reflects low expectations for this company. Any good performance results could generate a significant upswing. Poor results at this point are expected.

This is why stocks often fall after a good earnings report. The expectations are high and the stock price already reflects the high expectations. Then when earnings meet or even exceed expectations, the stock goes down. Hence tbe term "sell the news."

For my high risk high reward plays, I look for stocks with low expectations, but potential to perform well.

CVSI could very well have a good sales performance quarter, but that's not expected.

This is different than picking a stock that has no potential for an upswing. There are plenty of those I avoid.