FITX now, and the future! Ask yourself this que
Post# of 56324
Posted On: 07/16/2014 9:03:24 PM
FITX now, and the future!
Ask yourself this question
Will politicians ultimately go for tax revenues/regulations and jobs or constituents? This is a real no brainer here,
1. FITX will obtain licensing
2. September is a probable timeline from the city council because it is based more upon governmental calendar and structuring., i.e., last quarter cleanup of 2014 business to prepare for the 2015 calendar year. (I know that makes absolutely no business sense but governments do not base timelines on business)
3. TWEED did an IPO and currently trades around 2.80 on just 72,000 volume and two additional licensed companies (when last checked) trade around .11 and .14 on VERY low volume. If you use FITX volume/PPS around 8 million volume then using comparative analysis of currently licensed public companies (via JV or directly) PPS extrapolates out to .79 within several months once license is issued. This projected PPS is NOT REVENUE BASED but note that companies in this sector and in this market are in reality not being valued according to SS/PE
4. Factors such as share structure and MMs selling large blocks of shares will continue to have significant short term impact on PPS as liquidity issues emerge due to retail buyer sentiments. Also, once license is obtained there will be a short term combination of profit taking with both retail shareholders and MMs that are presently holding shares off the market. I know this sounds like a contradiction but not if you recognize that the owners (insiders) ultimately exert control on shares/market entry.
Even though IPO on TSX and FITX traded OTC markets are hugely different it is logical to consider volume and price action as being indicative of a segment of retail buyer interest within the mmj sector.
If you further extrapolate then it is probable to see head to head competition (after license) which will bring IPO pricing and OTC pricing closer together. Needless to say this would almost certainly include a FITX uplist and we should eventually see pricing above $3.00
Other factors will drive this market such as politics and projected tax revenues/medical marijuana R&D/ Hemp, etc., This is a very young market that could grow significantly for the next 20 years. Keep that in mind as we (together) see many twists and turns before this market segment matures,
NOTE**Watch for Aphria to do an IPO on the TSX Venture Exchange
Ask yourself this question
Will politicians ultimately go for tax revenues/regulations and jobs or constituents? This is a real no brainer here,
1. FITX will obtain licensing
2. September is a probable timeline from the city council because it is based more upon governmental calendar and structuring., i.e., last quarter cleanup of 2014 business to prepare for the 2015 calendar year. (I know that makes absolutely no business sense but governments do not base timelines on business)
3. TWEED did an IPO and currently trades around 2.80 on just 72,000 volume and two additional licensed companies (when last checked) trade around .11 and .14 on VERY low volume. If you use FITX volume/PPS around 8 million volume then using comparative analysis of currently licensed public companies (via JV or directly) PPS extrapolates out to .79 within several months once license is issued. This projected PPS is NOT REVENUE BASED but note that companies in this sector and in this market are in reality not being valued according to SS/PE
4. Factors such as share structure and MMs selling large blocks of shares will continue to have significant short term impact on PPS as liquidity issues emerge due to retail buyer sentiments. Also, once license is obtained there will be a short term combination of profit taking with both retail shareholders and MMs that are presently holding shares off the market. I know this sounds like a contradiction but not if you recognize that the owners (insiders) ultimately exert control on shares/market entry.
Even though IPO on TSX and FITX traded OTC markets are hugely different it is logical to consider volume and price action as being indicative of a segment of retail buyer interest within the mmj sector.
If you further extrapolate then it is probable to see head to head competition (after license) which will bring IPO pricing and OTC pricing closer together. Needless to say this would almost certainly include a FITX uplist and we should eventually see pricing above $3.00
Other factors will drive this market such as politics and projected tax revenues/medical marijuana R&D/ Hemp, etc., This is a very young market that could grow significantly for the next 20 years. Keep that in mind as we (together) see many twists and turns before this market segment matures,
NOTE**Watch for Aphria to do an IPO on the TSX Venture Exchange
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