Investor, shareholders, and pundits have experienced the vicious cycle of the market. Respectable investors such as Warren Buffett have often advised "to be fearful when others are greedy, and be greedy when others are fearful." A technical indicator that measures this type of "fear" is called the Relative Strength Index, or RSI, which measures the momentum of the share price on a numerical scale of 0 to 100. Many analysts believe share prices to be oversold if the RSI falls below the value of 30 and overbought if the indicator is above 70.
Today, shares of Creative Edge Nutrition (OTC: FITX) have reached a historic oversold territory, indicating an RSI of 23.66 on the daily average. After changing hands as low as $.0314 per share, a 25% decline in the share price, investors have become weary and somewhat fearful in a seemingly unknown cause of the share drop. A smart investor, whether bullish or bearish can look at this indicator as a clear sign that the recent heavy selling is in the process of exhausting itself, and opportunities to buy shares have emerged from the selling pressure. The chart depicts the yearly performance of FITX:
Looking at the relative strength index (outlined in red circles) , investors notice FITX is at a record low of 23.82. Only once before did the company reach a low of 25.66 RSI on May 20th, 2014, in which catapulted back to erase all losses almost immediately the next trading day. This is one of the best buying opportunities for investors today.
It is imperative that investors understand that there essentially has been no recent news that dictates this price drop in share price. A recent incorrect article that speculates a Ukrainian Law firm was hired to "fight Lakeshore residents" is not only ludicrous, but a repulsive attempt to manipulate new investors and worry long term investors. Most recently, CEN has secured the most powerful law firm in the entire country of Ukraine to implement and execute the logistical steps necessary for the import/export of medical product in a free trade agreement established by the Canadian government and Ukraine. This is NOT to fight the town of Lakeshore or any other speculative rumor that has caused a sense of panic selling in today's events. The fundamentals of the company are sound and remain even stronger than before. The recent Ukrainian conferences have given many investors a strong indication of the "spring-coiled" effect this company will have.
I can not stress enough that no recent news has transpired to cause this panic selling leaving many investors in disbelief. As many investors seek answers to their questions, they fail to realize the paramount importance of the company's strategic partnerships and Open House event that is to be held on October 21st 2014. Investors should understand the financial straddling required for the company's success and be confident in Bill Chaaban's strategic investment executions. CEN Biotech has became an elite world class company that will soon be exalted for their dedication and perseverance to help patients with their various ailments.
Almost a year ago, the construction of this company was being prepared with blueprints and drawing boards. Today, the $20 million facility is not only constructed and given documented approval by the Town of Lakeshore, but it has been admired by inspectors of Health Canada as a template for future marijuana companies to emulate.
Investors have patiently waited for months to obtain some type of result in this tenuous task with hurdles beyond imaginable. Every Canadian marijuana company is defined by the moment they receive their MMPR license. This company, to my knowledge is unique to investors in that it offers investors to engage in trading before license news reaches private investors, much different than other companies that are open to investors only AFTER license approval. CEN Biotech is the apex of the industry and other companies are envious. And when license is finally announced, the world will know, along with every investor out there, CEN Biotech has finally arrived. I can only say to prepare to take a great leap forward. Prepare to expect the best and become part of history.
Cen Biotech facility. Courtesy J Smith.
Every person should be accountable for their own due diligence and act responsibly in their investment trading strategies. This article aims to show my own opinions and investors should trade accordingly.
Analyst's Disclosure: The author is long FITX.
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