Saturday, July 30, 2016
FOLLOW THE "SMART" MONEY
As an investor I am always wondering how my year will end. Did I reach my goals or targeted projection for growth? Is my portfolio safe if another market crash happens? It's not an easy way to make a living these days by throwing all your cash into the stock market. It's a growing trend in America yet most are merely throwing their money away. When investors first start out they usually trade local rumor in their warm circle of contacts at work or through friends. As they progress they find on line sources of information that may or may not be bait for unsuspecting new traders. The real crux of the matter is that companies need to be transparent yet tight lipped on new developments or changes in a business plan. These changes are not easy to spot if you are not in the camp or directly connected. As an aggressive investor you need to spot trends in trading patterns and watch if a larger investment group has signed on for the long haul. One site worth checking out is https://www.ceo.ca/
The term "follow the money" means different things to different investors. You can follow the money, or you can follow the smart money. Recently Eguana Technologies had a run on it's share price, right around the time it put out it's 2nd quarter financials. You could argue that it was a run based on the speculation that the company was turning the corner on its balance sheet and investors were loading up ahead of that news. But the financials were not that great. The CEO has recently hinted in an interview that the company could start turning a profit in the 3rd quarter based on an increase in demand for it's products. Shortly after the quarterly was released a financing deal was struck that quickly put into motion a build-out of their operations and a stronger balance sheet after dealing with some small debt. $6 Million Offering The money, or smart money coming in at this key time makes me think there is a broader plan in the works that could put Eguana on a global stage.
We have all watched Tesla and Elon Musk shine a very big light on solar and the electric car market and this light may have started the move on Eguana Technologies. The company has been doing the right things in a challenging market but seems to have switched into high gear by one or multiple catalysts that have not been yet revealed to the public. The stock has been trading in a very tight range of 29-31 cents after a very nice run. Normally hype only gets you so far and although the market hints were very arousing the inevitable sell down after news has parked the stock where it is now. Oddly enough it's been almost 6 weeks since real news but the stock has not sold down any lower. It seems almost frozen while some speculate it's under heavy accumulation.
As an investor I see this story de-risked every week with solid support but there is a lack of intel or direction from the company. I remain optimistic but I need to be realistic if there is a fail to deliver. New investors fall in love with stocks and I should know better. It's a temptation I fight every day to dive even deeper into the rabbit hole. For now I have to sit back and enjoy the summer. I almost feel like I am held hostage to a story in the hottest sector of modern history. This could be my biggest and greatest investment ever. I understand the fact that companies want to keep secrets due to competition and the protection on intellectual property but when you see other stories like Electrovaya EFL.T put out news and watch the stock run from 40 cents to over $4 a share you have to believe greatness is around the corner. http://www.electrovaya.com/
at 12:36 PM