Hi ThePasta, Both great questions. I don’t like to predict prices as a lot can change over a year. Focusing on the facts, WNB is transforming and headed in the right direction. When I first took a look at Wellness when it was at 1c almost a ago, I thought it had much potential but would take some time. Unlike a mining company, it’s not a matter of finding a new asset and going again. Wellness had to carefully map out the business to eliminate debt and then inject products into their portfolio to create the revenue needed in becoming a positive cash flow company.
The spas were always my biggest concern. Once these were sold, I purchased a decent amount of additional shares. The sale of the spas de-risked the company but the market didn’t really factor that in. We’ve seen the introduction/acquisition of decent products that are sufficient to push the company forward into being cash flow positive. The upcoming quarterly report will shake out the remaining stale holders and then a big 2021 is on the cards. Personally, I look to invest in companies where there is significant selling by stale holders who have had enough and want out; WNB fits this perfectly.
Concerning your second question, I prefer under $1b SOI when investing. That said, some of my biggest winners have been over $1b. The current register is definitely rubbish though with holders happy to take a pip and move on which creates unnecessary pressure on price movement. There are other more important factors to consider such as: top 20 holders, management, market capital, etc. In this case, we should be more focused on the market cap and it’s still relatively low. The turnaround story is at play and the market is slowly waking up to the opportunity. Good luck!
Ps don’t these two products look similar
WNB Price at posting:
0.7¢ Sentiment: Buy Disclosure: Held
