Once in a while, I believe it's my duty to rant against venture stocks. Because there's always people looking on penny stocks for an explosive growth.
I've said it again and again: it's a bad idea to look there. I'm tempted to add some insults to people investing in that kind of stocks because it's been proved by science and me (two synonyms), a business not well estabilished is usually doomed to failure. You better bet on Spotify or Netflix, as speculative as they may sometimes look, than to bet on a fucking 80 million dollars capitalization that will probably be a 40 million dollars capitalization in a few years.
Let's take a look at 10 small caps that have been recommended by many analysts in Canada over the last 5 years. Most of these have been recommended by Jason Donville, but some others have been recommended by me and some other bad analysts. Some of these have experienced a big overvaluation period, so, if we take a look at the price 5 years ago and the price today, it looks good (CRH Medical for instance).
However, most of them did pretty bad. And we can seee that, usually, when a stock changes it's name to something else, it's because it tries not to be associated with itself anymore. How the fuck would you want to be associated with a stock that doesn't even want to be associated with itself?
That's how fucking crazy some investors are.
CRH Medical (CRH.TO):
5 years ago: 0,72$
Peak: 10,87$ on march 1st 2017
Patient Home Monitoring (now Protech Home Medical) (PTQ.V):
5 years ago: 1,25$
Peak: 7,90$ on april 1st 2015
Macro Enterprises (MCR.V):
5 years ago (which was also the peak): 5,25$
High Arctic Energy (HWO.TO)
5 years ago: 5,48%
Peak: 6,15$ on january 1st 2017
Nobilis Health (HLTH):
5 years ago: 1,11$
Peak: 6,83$ on may 1st 2015
5 years ago: 5$
Peak: June 1st 2014: 6,11$
Ten Peaks Coffee (now Swiss Water) (SWP.TO)
5 years ago: 4,05$
Peak:11,99$ on january 1st 2016
Callidus Group (CBL.TO):
5 years ago: 18,60$
Peak: 22,80$ on august 1st 2014
Delphi Energy (DEE.TO)
5 years ago: 3,54$
Peak: 4,53$ on august 1st 2014
Concordia Healthcare (now Advanz Pharma) (ADVZ.TO)
5 years ago (which was also the peak): 210$