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Caterpillar - Catching A Reversal On A Tuesday

Tuesdays are not the best of days to look for reversals however Caterpillar jumped a modest amount which impacted the value of this series of Puts. This is a 1:36 p.m. readout. Here is it's five day chart. Now its one day chart. It would seem like kind of a random thing to do and why fight a strong stock? One reason is that the markets are only mildly up and could give back some of it's gains before the end of the day. Caterpillar could be gaining strenght based on last weeks articles talking about how Caterpillar could potential gain from this new AI movement. Notice that the five day chart is in an uptrend and notice the small open interest numbers in the Puts. No one wants to hold Puts on Caterpillar when it is in this uptrend. Could it has a soft selloff in the next two hours? Here it is now 50 minutes later. The "bid and ask" are almost unchanged. There is also not much change in the DJIA index.Now this. The DJIA is sellig off and Caterpillar is hanging ...
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What Happens on the Day After a 100 for 1 Reverse Split. Are Shareholders In A Better Position? SugarBud (Symbol SUGR)

Management was sleeping at the switch today to allow their share price to drop 24% on a volume of only 30,000 shares on a day just after a 100 to 1 reverse split. With somewhere over five million shares left outstanding a drop of 24% wipes out about one million dollars in shareholder value. Lets add to this storey the following information. I also note that there was some good news. Yet then again, how good really was this news?
So now what? Check out Sedar. Look at how SugarBud is filled to the rafters with inventory that is not going anywhere and look at how their operating expenses are double what their gross sales are. You can't run a business that way. In a recent blog I noted how "Eve and Company" (Symbol EVE.V) near London Ontario Canada also has inventory problems. There is nothing special about growing weed. Anyone can do it. It's an industry of the survival of the fittest. When I looked at the Mendocannabis.ca website I came across "Nextleaf Solutions" (symbol OILS). They also supply product to Medicibis and they recently raised over three million dollars in a new issue. Here now is more about it. Do your own homework. The marijuana space is a dangerous sector of the market to be in right now.
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*** A final note on the root of this problem. Prices derived from growing the product are falling. To learn about an interesting company who is busy trying to get ahead in this space go the the Sedar website and read the news releases on Sundial. They never seem to stop in trying to reinvent themselves and their daily trading volumes are impressive.
+++++++ A Feb 28th update. If this was to happen and this happens and this happens... SugarBud now has a new friend.
*A 2022 update. SugarBud did not survive.

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