ITHUF 6/14/19 : BIG bounce play (longer term play)
تم تحديثه
TraderNoxtreme calling out what looks like a good entry.
MJ stock
Looking between 3 and 2.65 as entry if we get there before trend reversal.
ITHUF has dropped about 51% in about 3 months and about 42% since the 23rd of April.
Related to earnings miss on 5/30/19 (appears to be the reason for this leg down):
"The company reported Q1 revenue of $9.6 million, a huge 4,166.7% jump from the $225,000 reported in the prior-year period. This total also reflected a 384% quarter-over-quarter increase, and iAnthus easily topped the average analysts' Q1 revenue estimate of $2.78 million.
iAnthus posted a GAAP net loss in the first quarter of $18.3 million, or $0.15 per share. This was much worse than the $645,000, or $0.01 per share, reported in the prior-year period. It also missed the average analysts' estimate of a loss of $0.07 per share.
However, the company's adjusted EBITDA trended in a positive direction. iAnthus announced an adjusted EBITDA loss of $5.1 million in Q1. This reflected an improvement from the adjusted EBITDA loss of $6.5 million reported in the prior quarter."
"Significantly higher spending. The company increased its head count with the MPX acquisition. It's also done a lot of internal hiring."
Company is growing fast and should be announcing new "Be" store opening in NY in "Fall."
Just hired some big players to operations, marketing and legal.
This would be a longer-term swing. Perhaps a qtr or more depending on the momentum of the move up when it comes. RSI is 20 on the daily (lower now) and 30 on the weekly. Medium risk trade but the sector as a whole has been pulling back so I feel that a negative earnings surprise with overall sector weakness might be providing an optimal entry in the very near future.
Not financial advice as I don’t have the proper certifications to provide you with that.
Like and subscribe for sure!
MJ stock
Looking between 3 and 2.65 as entry if we get there before trend reversal.
ITHUF has dropped about 51% in about 3 months and about 42% since the 23rd of April.
Related to earnings miss on 5/30/19 (appears to be the reason for this leg down):
"The company reported Q1 revenue of $9.6 million, a huge 4,166.7% jump from the $225,000 reported in the prior-year period. This total also reflected a 384% quarter-over-quarter increase, and iAnthus easily topped the average analysts' Q1 revenue estimate of $2.78 million.
iAnthus posted a GAAP net loss in the first quarter of $18.3 million, or $0.15 per share. This was much worse than the $645,000, or $0.01 per share, reported in the prior-year period. It also missed the average analysts' estimate of a loss of $0.07 per share.
However, the company's adjusted EBITDA trended in a positive direction. iAnthus announced an adjusted EBITDA loss of $5.1 million in Q1. This reflected an improvement from the adjusted EBITDA loss of $6.5 million reported in the prior quarter."
"Significantly higher spending. The company increased its head count with the MPX acquisition. It's also done a lot of internal hiring."
Company is growing fast and should be announcing new "Be" store opening in NY in "Fall."
Just hired some big players to operations, marketing and legal.
This would be a longer-term swing. Perhaps a qtr or more depending on the momentum of the move up when it comes. RSI is 20 on the daily (lower now) and 30 on the weekly. Medium risk trade but the sector as a whole has been pulling back so I feel that a negative earnings surprise with overall sector weakness might be providing an optimal entry in the very near future.
Not financial advice as I don’t have the proper certifications to provide you with that.
Like and subscribe for sure!
ملاحظة
Finished the day weak so if we see a gap up I would be looking for potentially one more red day OR I would watch for continuation. If we gap down then I might take an entry anticipating a bounce sooner rather then later. If we are flat I will probably sit on my hands for a day or two waiting for a break.I was considering making my first YouTube video explanation of this chart and the logic behind this idea... Please comment below if you would watch me explain this chart / trade in my own opinion.
ملاحظة
Went ahead and grabbed a small position at 3.41 because we got the gap up and then continuation. Will cost average down if we dump below 3.Again, this is a longer term play and I am prepared to make multiple entries if the opportunity presents itself.
ملاحظة
We are testing $4!We are testing if we can break the 12 and 26 EMA on the 4 hr which has been resistance all the way down. We did break in once on the way down. The break was met with a harsh rejection so hopefully Monday brings green as 4 should turn into strong support.
Set up looks quite good for continuation now. I have not made a second entry but I wish I had bought more at 2.99 when I saw it.
ملاحظة
Errr. Something funky going on with TradingView with the chart above. Price is 3.37. It says 337 but the chart is showing 4 which it did not and has not hit yet. Strange. The 15 min is right
ملاحظة
Been in this one a while and have seen quite a bit of draw down on my first position but I have held strong because the entire MJ space has been pulling back and I always planned this to be a longer term accumulation position. This was a bit more pullback then I wanted but that is why I waited to get my second bite.Made my second entry at 2.66 today when we broke the daily pattern bullish and showed support at the end of the day. The MJ space is a lot like crypto and I think with spy turning and some of the market uncertainty easing it could be time for some solid upside in the space as a whole but that is just an educated opinion. I still think this company is a sleeping giant ready for exponential growth as more states legalize recreational MJ. They are still OTC and not even searchable on Finviz, stocktwist last I checked. It could be a while but Morning Star is looking now So hopefully I will be taking profit or averaging up soon :) Cost average is 3.04 I believe.
backend.otcmarkets.com/otcapi/company/morningstar/report/ITHUF/
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