Well stated, maybe this will help with your response to your associates. Keep in mind that I am primarily an investor based on the fundamentals of a company. I do some light trading but for that all you need to do is learn how to read a chart reasonably well.
As you mentioned, the company has many things going for it, yet the share price remains lower than expected. One of the things I love about the stock market is that beyond all the chatter and perceived complexity it all breaks down into a few basic math calculations. You don’t want to buy companies that are going broke, so you read the Balance sheet and compare Cash/Receivables vs Current and Long-Term Liabilities. From there, see if the core business makes money or not by a quick look at the Income Statement and see if they have any Income from Operations. If not, the cash burn until they do go broke or need to raise capital can be calculated. There is a little more to it, but overall it’s simple stuff.
But what about the share price? It’s a math problem as well, basic supply and demand, but for the shares of the company not a product. With HIRU the supply of shares coming off restriction (500m +) into the Float was more than the demand, driving the price down. I underestimated this myself and got stung a little in the short term. However, the supply side of the equation is no longer overloaded with only 8m Restricted shares remaining, now all we need is demand. The company buying back shares will help but the real boost will come when more investors/traders realize the company is profitable and expanding. This takes a little time for people to figure out and is generally driven by quarterly numbers or press releases, both of which are coming soon enough.
When answering the question “if the stock is so great, why is the price so low?” It’s simple, Supply outweighed Demand due to the conversion of restricted shares, and Demand hasn’t kicked in yet since people have yet to realize how good the company really is.
It’s just math, hope this helps,
Knife
Bullish
Do your own DD and trust it, no one else has your best interests in mind.
