I am no good at charts as I don't trust charts beyond using them to explains the fundamentals and investor sentiments at every pop or drop. I have checked the chart again. I see that around Jul 2017 when AusCann raised more money and got 16 millions in the bank, its share price was around 45c before it rocketed to 1.80 after some announcement of license approval. It was purely speculative at that time plus the pump and dump action ... Now, we have about 40 millions of cash and share price about the same! Does it look attractive now? People have lost faith in AusCann as they see that this is a paper tiger. They cannot get things done. Suddenly the whole idea is in doubt. One observation I see is that this stock is so speculative. When this stock goes side way in the past, it would drop further. I also notice that the volume in 2017 was so much higher when people were excited by AusCann. This excitement is now gone (probably forever).
I am happy to miss the opportunity by staying on the side line. The big boys can still make a good profit by selling further as they got their shares around 20c. I think 35c is a good point for a pure speculative punt on the long side. If this stock ever drops to 35c, it would take a while longer to do that. And this would be the longest stretch of downside. We do need a longer stretch of downside for the funds to find confidence to jump in again. I feel the recent selling is not long enough and the total volume is not high enough for the big boys to stop thinking about taking profit. AusCann won't have any real positive news to announce for months. Some people might go for a "leap of faith" that AusCann can actually produce a product by end of 2019. My concern is that AusCann may run out of money in 2 years and still has no revenue by that time.
AC8 Price at posting:
45.0¢ Sentiment: None Disclosure: Not Held
