Updated
ACB should see a minimum 8% correction
As announced today, ACB will further dilute their stock. We'll ignore that management earlier said that they would not further dilute their shares, and what this news could actually mean. Lets just look at the stock alone: $750.000.000 worth of extra shares means the speculative future value just dropped with at least 8%. Investors should act accordingly, and send the stock down. We were already in a down trend channel, with increasing bear volume. I don't expect the market to take this news as an incentive to buy more shares.
I am looking at the current levels. We may see the February 4th top tested at $8.32, which is a FIB level, not quite unexpectedly. We still have a gap to close down to $8.25, and there is no telling where investors currently have their stop losses. When the current uptrend is lost, we'll be looking at the larger FIB retracement levels as specified on the left side.
I am looking at the current levels. We may see the February 4th top tested at $8.32, which is a FIB level, not quite unexpectedly. We still have a gap to close down to $8.25, and there is no telling where investors currently have their stop losses. When the current uptrend is lost, we'll be looking at the larger FIB retracement levels as specified on the left side.
Note
Thank you to RonVau for your comment on another idea:Executive Chairman Michael Singer commented, "Although we have no immediate intention of drawing capital against this Shelf Prospectus, we have introduced this option as a prudent and long-term strategic measure to provide us with flexibility in access to growth capital, if or when required, to continue executing on our global expansion and partnering strategy With our recent listing on the NYSE, our successful financing in January 2019 led by U.S. institutional investors, and as we work with Nelson Peltz to explore potential partnership opportunities, this filing is a natural evolution for our company as we rapidly mature into a global and profitable organization."
And while I don't like it, that isn't dilution. It is an option to do so "if or when required".
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.