We’re back with another short discussion article! This should be a relatively quick one, but there are some key points I want to get out there. Today’s topics:
- AITX – Reverse Split Bylaw Changes
- AITX – Share Price Volatility
- Rant #1 – Technical Analysis
- Rant #2 – The Purpose of my Blog
AITX – Reverse Split Bylaw Changes
One thing that sort of snuck under the radar today was that AITX amended its bylaws to not allow a reverse split until January 1, 2024 UNLESS it was directly related to a NASDAQ or NYSE up-list. I wrote an entire article on this, so I suggest reading that for more insight.
Steve has said like 10,000 times that he doesn’t plan to do a reverse split. But this is great news that it’s now codified that they cannot do one without it being directly related to an up-list. It sort of gets rid of the annoying Twitter users constantly saying he’s lying or they’re going to do it anyways. It would be unbelievably damaging to AITX’s credibility if they went back on this “no reverse split” stance (without an up-list), I don’t think the company would recover.
My take, this is cool news, but I don’t think it changes a ton for me because I always believed the CEO when he said there was not going to be a reverse split. So it’s cool to hear and I’m glad they did it, I’m sure it calmed a lot of people down, but I always trusted the guy!
AITX – Share Price Volatility
I’d be remiss if I didn’t bring up how wild the AITX share price has been the last few days. We were up more than 15% today I think, and at one point down more than 15%. So quite a wild day!
I think a lot of things are coming to a head. Macro events such as Omicron, interest rake hikes, congressional deadlock, etc. already have the markets in a bit of flux. Now add in the fact that AITX is in the OTC which ramps all of that up by at least a factor of three, and couple that with AITX’s upcoming 10Q, plus now PR around a reverse split and more sales perhaps?
I’m going to give the most politician answer here and say any one of those things could be factoring the share price. Like I always say, be very, very, careful during these times. Don’t give into FOMO and don’t panic.
WARNING – if you’d like to skip my rants, stop reading now 😊.
Rant #1 – Technical Analysis
I’m going to ruffle some feathers here, so I apologize. I could write 50 blog posts on this as well, so I’ll keep it short. Deciding to buy a stock based on technical analysis, and technical analysis alone, has got to be one of the stupidest things you can do in this world. You’re better off just heading down to your local casino and putting it all on red.
Do you really think you drawing lines on a share price graph and analyzing Elliot Waves is going to serve you better than, oh I don’t know, reading a 10K and seeing if the company you’re investing in is actually a good company?
Also, do you really think that you can analyze share price trading data better and draw better conclusions than the literal billions of dollars investment firms spend on data analytics. Do you think you can out-think a supercomputer back testing millions of scenarios a day to glean even the slightest 0.0001% advantage over other traders? I bet a lot of these technical analysis gurus have trouble with long division let alone complex data analysis encompassing billions of data points!
In 1942, yea technical analysis maybe would work. But not today.
The reason I got triggered to write this rant… I was watching this bozo doing a live video interview with a CEO of an OTC company I follow. The CEO is talking about his company, going about his business, giving actual real information. And this absolute bozo keeps going on these tangents in between questions and rattling off these stupid technical analysis indicators for the company…DURING THE INTERVIEW.
Like saying “wow that’s really cool about the company thanks for your answer… so we’ve $XYZ ticker CEO speaking with us today $XYZ ticker is currently hitting 52 points of resistance, hit 100 Elliot waves in the last five minutes, it just crossed the MACD and back twice in the time I’m reading this sentence NOW’S THE TIME TO BUY!!1!1”.
I exaggerate, but you get the idea. I’m surprised the CEO didn’t just hang up on this clown. It’s a not well-known company and an older CEO, so he probably didn’t even understand what the heck this guy was even saying. If he did, he probably would have put his head through a plate glass window.
Anyways, rant over. Stop using technical analysis, I get physically ill seeing people recommend a stock because of a technical indicator.
Rant #2 – The Purpose of my Blog
This unfortunately needs to be said again… the purpose of my blog is not to pump stocks, it’s not to short and distort, I’m not some activist investor selling you guru classes (we all know who I’m talking about). I’m here to try and discuss some educational topics on micro-cap investing, analyze some companies I follow, and hopefully give you a little bit of entertainment with my awful jokes.
I don’t have some master plan of sending some stock to the moon or sinking another company. I’m flattered that some people seem to think I have enough clout to even do that in the first place, but I don’t. Let’s be real, I have like 150 Twitter followers, I’m not Kanye. Also, not to get too personal, but I think some people also REALLY overestimate how much skin in the game I have with my micro-cap positions. If you saw my portfolio, you’d probably fall asleep with boredom.
Rant #2 over, and article over!
As always thanks for reading. If you’d like to help support my blog, you can do so via Patreon here. This will be a separate topic for another day, but I am so unbelievably flattered by my current Patron’s support of the blog. It makes writing even more enjoyable for me. I know I’ve told all of you this personally, but I appreciate your support so much.
DISCLAIMER – I CURRENTLY HOLD A LONG POSITION IN $AITX. THIS ARTICLE IS NOT FINANCIAL ADVICE AND IS INTENDED ONLY FOR EDUCATIONAL AND/OR ENTERTAINMENT PURPOSES. AT THE TIME OF WRITING THIS ARTICLE, PERSONS AFFILIATED WITH THE COMPANY/COMPANIES ANALYZED ABOVE MAY BE PROVIDING MONETARY COMPENSATION AS MONTHLY PATRONS THROUGH MY PATREON. THIS COMPENSATION IS NOT PROVIDED IN RETURN FOR ANY SERVICE, WRITING ABOUT A PARTICULAR TOPIC, AND/OR FAVORABLE OR UNFAVORABLE OPINIONS. MY PATREON SUPPORTERS HAVE NO INFLUENCE ON THE CONTENT OF MY ARTICLES.