Read on Twitter
$HCMC DD on why this could reach $1+
There are many negative views on here stating that it is impossible for HCMC to reach a dollar. They all spew the same rhetoric, that there are too many outstanding shares. Here I am breaking down why this may get to $1 or above.
There are many negative views on here stating that it is impossible for HCMC to reach a dollar. They all spew the same rhetoric, that there are too many outstanding shares. Here I am breaking down why this may get to $1 or above.
1. The lawsuit vs. PM is seeking approximately 1.5-1.7 billion usd. It is also very likely there will also be a royalty payment for PM to continue use of the iqos technology. They have made billions on this technology, and it is in there best interest.
2. PM does not want to take this to court. This will be a very bad image for PM, even if it does win the case (which is not likely). Legal issues being resolved in court will drive the stock price down, and investors will exit upon arrival of the court date. Further, this will
attract more option and short sellers, which will further drive down the price. By settling out of court, PM will avoid negative publicity, will preserve for the most part, its stock price, and will most likely be able to continue to use the technology.
3. There is a possibility that PM buys out HCMC. This gives a lot of room for growth, whether they continue the HCMC brand, or incorporate directly to PM brand. Stock price will still rise significantly. I don’t see this as the probable solution, but it is a possibility.
4. Most importantly, there will not be a reverse split. The ceo owns 11 billion shares. Many company employees own preferred stocks that are in the process of being converted into common stock, which will allow them to watch their portfolio grow. This happened last week, which,
given the 20 day requirement on notification, lines itself up perfectly with the court/likely settlement date. Something is happening, and the company is giving very good hints.
5. The most likely outcome is what most are neglecting to see. The company, upon a settlement, will most likely buyback most outstanding shares, and retire them. They can do this with roughly 400-500 million USD, which leaves still another 1 billion USD from a settlement for
their usage. This will send the stock price soaring. Due to the number of insiders who own common shares, including the ceo, along with the new investor at 3 billion shares, and most likely a partner/supporter/confidant of the CEO, this is all their best interests to drive the
price up. Reverse splits will rise the price, but lowers the number of owned stock, this have no influence on the value of your portfolio. The buyback very well could have started already, as there is a decent chance that a settlement has been reached, but just not yet announced.
In summary, this company, which is already quite profitable and successful, will win its lawsuit against PM, most likely via settlement. This will send the price quite high, and the price will soar once the company starts buying back and retiring stock, which very well could have
already started.
Ride this to the moon. Don’t be scared and sell short. You will be able to retire on this stock.
Ride this to the moon. Don’t be scared and sell short. You will be able to retire on this stock.
