@McKhenry, this is normal price action after a cap raise. In fact, this is better than the average stock, that normally returns to the Cap raise price as the likes of Regal sell down from 5.9 after the stock got issued. IMO, the fact that 5c has held solid for 4 weeks is a very positive signal. Further, someone is manipulating the stock in the closing match for the market to close lower. This is usually done by accumulators. They slam the stock down and make those relying on charts nervous and they accumulate slowly on the back foot.
You maybe correct that it could drift lower on no news but it really doesn't matter to longer term holders. In fact, I welcome it as an opportunity. The coy have NEVER been in better shape. The cap raise is out of the way and the balance sheet is now very solid. The refinancing is a matter of days away from completion, the demand for the product has never been stronger, the number of retailers wanting the product is growing exponentially, the margins have never been higher/ costs lower and supply is being addressed with better terms and a second supplier.
One thing that is extremely different about LIFX in 2021 is that I am not expecting them to have 3 -ve quarters and 1 positive one. With the recently announced stores to fill ( Costco, Lowes, HSN, Target and Sams Barn ) in the first quarter next year, I believe its possible that every quarter from now on will be positive. Especially with Switch available in north America in mid 2021 and hopefully OHM will be a meaningful contributor by then.
With Philips currently having supply issues this represents a great opportunity to pinch some market percentage from them in Europe.
Looking forward to an update of this weekends sales and reorders. Hopefully Thursday or Friday next week.
BUD Price at posting:
5.1¢ Sentiment: Buy Disclosure: Held
