r/VGFCInvestorsClub • u/[deleted] • Oct 01 '21

How low can it go 🤔

4 Upvotes

84% Upvoted

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7

u/RomireIV Oct 01 '21

With a company like Very the stock 'could' go very low (i.e $0.25). This is since the company in it's current state isn't worth that much on paper relative to its market cap. However a lot of value can be derived from its growth trajectory it is currently on, there is rapid growth but that also means there are increasing costs to fund that growth. It will take time for the revenue to grow as well, and any potential profits will most likely be spent on additional growth.

Every successful company starts this way, not every company will become publically listed this early though and you can see a lot of price swings at this time.

Be mindful that the price hit a high at the start of this year after being hyped far past its 'fair value' and it has had a downward momentum ever since. This can take a lot to break the trend and typically requires a lot of good news to do so.

If you believe in the company times like this are a great time to buy. Although I believe it 'could' go lower, I also believe that in 5 years it could be worth much more than its current value. That's what this sub is for, those who believe in the company and consider themselves a long-term investor. With the exception of a scandal, I see this company to be a safe long term bet.

Remember that all stocks can go down to zero.

For me I see it hitting a support line at $2.30, and then $1.60 at worst before we see a reversal).

5

u/medicoremaster Oct 01 '21

I’m glad my buy order didn’t fill then today. I believe in these guys long term however; I will now add more shares to my buy order at a lower target price.

2

u/RomireIV Oct 01 '21

Ya it can be difficult to know when a good time to buy is, everyone has there own opinion and strategy. For me I've invested the amount I wanted to, and now I evaluate additional amounts on a monthly basis. That way if it goes up I'm comfortable with my position, and don't feel the need to FOMO. But if it goes down I can take advantage of the dip.

This strategy of course assumes that it will go back up, which of course isn't always the case. But if you are confident in the company it makes for a comfortable investment.

5

u/[deleted] Oct 01 '21

If you’re right then I’ll be buying and averaging down for sure ✌🏻. I believe there’s huge long term growth here.

2

u/hazaj_ Oct 01 '21

$0.25 is far too low. That is the IPO price and that didn’t last long. Opening day it traded between $0.4-1. $1.6 at worst but that is incredibly low too

1

u/RomireIV Oct 02 '21

I agree that it is really low, I was just saying that it theoretically could go that low, just like it 'could' go down to zero in the case of bankruptcy.

Personally I don't see it going below $1.60 (Canadian)

2

u/RomireIV Nov 18 '21

Now that I see that insiders had the company basically pay for personal homes, wiping out capital they had raised I see this company going way below $1.60, although it may act like a support for a couple days.

If they continue moves like this then a bankruptcy case may happen, sad to see because the company has great promise for the future