There are two groups - traders and investors. Some people prefer to buy low and sell high, capturing the 50% capital gains discount in the process. People - traders or investors - who say the share price is heading to 6-cents without substantiating their argument shouldn't be taken seriously. It's literally laughable. Sure these folks could be right. But claiming the share price will head to 6-cents without explaining why or providing any evidence is a straight forward joke. Any man and his dog could say the share price will fall lower or higher, or whatever. On the other hand, if someone provided a chart at 9-11 cents showing why the share price would hit 6-cents, then hats off and respect earned. In our previous blog post, we clearly warned about the 11-cent resistance on the charts, which day traders were focused on and decided to take profits...we clearly started this would be a risk in our blog post days ahead of it happening.
Why didn't we sell?
Well the 50% capital gains discount is worth far more to us than worrying about a few extra pips. Plus who knew the trade war would heat up at the time and how far the share price would pull back? Fundamentally speaking, when you compare IHL to its pot sector peers, the biotech business is worth around 10-cents per share which we argued at length in our previous blog post. The dental business is written off by the market and will probably only become valued when it gets closer to FCF+. So, when will the biotech business be valued at 10-cents? Well, we wish we had a crystal ball. But with four biotech trials about to start in the weeks ahead, the cannabis oils business on track for significant patient growth, and a major sleep devices deal that could net over $2 million in revenue p.a, we're not to phased about what happens with the share price in the near term. We started writing about IHL on our blog at 2-cents and then 3.7-cents before the big breakout and our recent post was around 9-cents. So, whether this falls back to 6-cents or whatever, who really cares? Fundamentally speaking, assuming the market doesnt collapse, we're confident that we'll see a 10-cent ++++ share price by early next year at the latest.
Lots happening hear...and for people who come out of the woods at 7.3 cents and stating they 'warned us' (speaking for all shareholders) is an absolute joke. Even if you warned the share price would head to the 6-cent region at 9-cents, it's laughable. The entire market has been falling thanks to the trade war, HK geopolitical risk, and Brexit looming. If people cared to provide concrete research that justified a 6-cent share price when the share price was trading at 9+ cents, then respect earned...otherwise its literally laughable! We're confident shareholders, similar to us, aren't losing sleep over this recent pullback - in line with the market, mind you - given everything that's happening over the coming months. We're eyeing off 20-cents, as argued in our recent 12,000 word blog post. But 20-cents is a real target over the coming year (assuming markets hold up) and we'll be thankful for out 50% capital gains discount, if this prediction becomes a reality. To your first million, -Trading For Millions
IHL Price at posting:
7.4¢ Sentiment: Buy Disclosure: Held
