Hate to say but I believe Weebit Nano is headed for all-time lows; lower than 30c, particularly with no news in progressing a commercial agreement, and no news in progress on the 28nm front. And this is why I believe this is possible.
#1 The likelihood of a recession in the US economy is rising, with non-farm payroll growth currently flagging an amber warning of a recession looming using momentum indicators. Any decline in growth from here on will flag a recession as being near certain.
#2 Trump continuing to place tariffs on Chinese goods has a similar effect to increasing taxation on his own citizens and businesses, which will likely lead to increased financial strains on everyone.
#3 Problems with the Federal Reserve Funds Rate has caught the Fed off guard, where yield curves have inverted and the Fed funds rate for overnight lending is higher than both the 2-year and the 10-year Treasury yield. This is despite unemployment and inflation remaining low.In several overnight ‘repo operations’ the Fed have flooded the market with nearly $200 billion in liquidity in the past 2 weeks just to keep banks functioning.To my knowledge this has not occurred since the 2008-09 financial crisis, so things must be much worse than we’re led to believe by the mainstream media.
#4 It appears to me that a double top in the Dow Jones Industrial Index has been made, and IMO a decline will follow. If a major stock decline occurs, investors will liquidate any stock they need to remain financially afloat, so no stocks are immune from a stock collapse and small caps likely to cop the biggest hit. Weebit, with no revenue, no commercial agreement and no product currently, IMO will not be immune to taking a big hit.
#5 This stock has been in decline since January 2018, and there is currently no real reason to accumulate when I believe you could accumulate more later at a cheaper price. Stock trading chart indicators also appear bearish, to an amateur chartist such as myself.
#6 Bullish momentum in gold and silver is indicative that we have financial headwinds in front of us.
All IMO of course, and is the reason why I’m sitting out this CR.I already have a reasonable holding so am not really concerned about rushing to get any more at the current price, but certainly if Weebit experiences a big drop in share price where I believe that no fundamentals have been jeopardized, at that point my sentiment may change and I’ll back up the truck instead.Until then, I’m patiently watching for any signs of life.
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