Canadian CANNAINVESTOR Magazine November 2017 - Page 176

Drawing on past articles and other content, you know to undertake due diligence and you know your own risk tolerance and our case study in this issue on CMED walks you through that process. We recently highlighted many possible value companies (low market caps, growing revenues/customers/markets, etc) but typically they are the exception and companies with low market caps usually have so for a reason. Back to the where we began - just how is understanding BRE-X useful? Instead of impossible to reach areas deep in the jungles of Bornero:

- Are there LOIs and MOU’s with unnamed companies often in another country?

- Are there progress reports with substance or does one need to sift through filings and financial statements to find material and meaningful updates?

- Does the company’s IR department respond to queries satisfactorily?

- Are the news releases value added or lacking in meaningful sustenance?

- Insider transactions (example, insiders selling a lot on a share price ramp up)?

- Is following the company like watching a cat chasing a laser pointer?

- Characters on bulletin boards and social media appearing to be overly promoting (or bashing) a specific company and even using Monty Hall Problem tactics? CannaInvestor Magazine previously alerted subscribers to how some use this and other game theory for their personal gain and often at the expense of the typical Retail Investor.