By Glenford Robinson
DAVIDsTEA Inc., a tea retailer having 250 stores located in Canada and the United States, played down the recent Stock Market excitement surrounding its company’s stock. The stock trading on the Nasdaq under symbol “DTEA” has garnered a lot of attention lately from traders and investors alike who thinks the company could be a buy-out target by any number of Cannabis producing companies. The stock has experienced a whopping increased in stock price well over 50% since the frenzy began in late August, continuing into September.
Despite the rapid increase in the price of its common stock, the company has tried to play down the hype by stating that it has no knowledge of any corporate deals between any Cannabis-producing company and itself. In fact, a deal with any of the major Cannabis producers would spell big money for the struggling tea retailer.
A Report Report surfaced on October 8th stated that the company has been contacted by several Cannabis producers to foster a deal, which would give the tea retailer the ability to sell Tea mixed with Cannabis. However, the tea retailer has declined all offers so far, despite its disappointing earnings.
DAVIDsTEA is currently a Penny Stock, hovering around the $2.20 and the $5.35 mark in the past few months, simply because it has experienced negative earnings, quarter after quarter since its inception in 2008 when the company IPO-ed at $19 per share. Therefore, it is not a far-fetched idea to think that the company won’t eventually forged a deal between itself and one of the major Cannabis producers in Canada or the U.S.
Considering the currently negative financial circumstances of DAVIDsTEA, the possibility does exist that the company could sooner rather than later sign-off on a merger deal with a major Cannabis producer. With such a possibility lurking in the deep like the Loch Ness Monster, the Scottish legend, it should be expected that the DAVIDsTEA stock price will continue to exude a high level of volatility, rising to very high prices, then crashing to very low prices. This kind of volatility and eventual steady overall increase in stock prices could mint a few millionaires on the way, before it is all said and done!
Anticipation is the name of the game when it comes to becoming a millionaire in the stock market, in other financial markets, or in any other business for that matter. In business, newly minted millionaires recognized business opportunities before these opportunities become apparent to others in a paradigm shift. This is why they became millionaires, and so too can you. An aspiring millionaire should develop an eye to identify opportunities that will help them become millionaires.
Just like the legendary Michael Jordan of the National Basketball Association franchise, Chicago Bulls in the 1990s, anticipation was the key to winning basketball games. Michael Jordan was the best at anticipating the moves of players around him. He saw them moved to spot on the court before they actually made the move to the spot on the court. This is why he made everyone around him better and this was the reason why he was a 5-time NBA champion. So, too investors or traders can use anticipation to sniff out investment and business opportunities whenever and wherever these opportunities exist. DAVIDsTEA is beginning to look like it could be a great investment opportunity for someone wishing to become a millionaire. This opportunity could possibly exist in the new Cannabis-Beverage paradigm shift. This is just an honest opinion derived from diligent research and study.
This article should not be perceived as an attempted to endorse or promote the buying or selling of DTEA securities. This article is simply a research induced opinion. Therefore, before you or anyone else decide to buy or sell any securities including DTEA, you must first consult with your financial adviser or your investment adviser. Mstardom Finance is neither a Stock Broker, Investment Advisor, nor a Financial Advisor. We are simply traders, investors, and entrepreneurs in real estate and wholesale packaged food distribution.
We own shares in DAVIDsTEA (DTEA) and is currently occupying a long position in the stock.
We believe in transparency, so we will always disclose to you the reader whether or not we have taken up a position in the stock or currency that we write about.
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I am a Clinical Lab Scientist, entrepreneur, investor and trader (stocks and Forex). I enjoy writing and publishing articles online.