Price to Participate17 Jan 2021 10:54
I read several posts here and other place with regards to high valuation, no sell numbers etc. and below are my thoughts.
1) Markets is always forward looking and will price a company according to future expectations of growth.
2) For a new emerging technology or investment sector, the market will bid up much higher price or valuation
(Example: ITM was on my watch list from around 20p, did not invest which is now more than £6.
ITM revenue is only 3.3m but MC of 3.7B, i.e. more than 1000 times to earning).
3) Long term investors (particularly for ZOE/ HUR in previous incarnation), many holders have returned to profit in last 3/4 months only and they may top slice/reduce their investment but unlikely to mass sell-off unless there is a change in investment case.
4) CBD business is attracting far more exotic investors than bygone o&g business and MC is expected to keep rising thanks to new heard of investors who are here for a long term.
5) We are also much much sought after with recent deals and product placement/innovation.
6) CEOs know their stuff which was evident from the previous investor presentation.
Much refreshing to hear such young pro. to lead such an interesting business on verge of massive expansion.
7) AFAIK, this is probably the only CBD stock on main market, we may get competition in due course but that is a good thing and will probably bring in more institutional investors
While we may of course experience price volatility, for LTH this may just be a beginning of a fruitful investment but expect major ups and down (recent one I can remember 24p to 15p, 45p to 29p, 82p to 57p) but generally for ong term case and particularly those of us (Can't reach to HD's stake though :), wish I had put in more last March/April) who hold 6 or 7 figures here are least bothered with such fluctuation.
Future is bright, IMHO of course!
As usual this is not an investment advice and Do Your Own Research!
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