CANNAINVESTOR Magazine December / January 2016 - Page 127


Tying this back to the article, forums were filled with those trying to create noise and

misdirection to nudge the share prices by convincing inexperienced Retail Investors that the two

decisions (Investor1 and Investor2) were identical when in fact the scenarios are diametrically

opposed. Hold or swap doors? I have heard it be said that Investor2 should buy shares in CGC

and wait before selling those shares for shares of MT. That scenario effectively transforms

Investor2 into Investor1 holding CGC shares debating whether to hold them or convert them and

we have already addressed that decision. So long as the share price of MT is less than 0.7132

the investor is ahead by buying shares in MT. The below chart illustrates that the lower the cost

of MT shares (compared to CGC) the more shares that will convert when the acquisition closes.

Trading CGC and MT during this period for a quick ROI is completely different. I personally know

someone who purchased CGC for the first time just a few months ago at less than $4, sold on

November 16th at over $16 and bought it back just days later around $8. On December 1st, she

sold all of CGC and bought MT. She never used Technical Analysis or looked at charts but rather

relied on her instinct and experience.

All decimals and ratios can be expressed as fractions - a little confusion, manipulation,

misinformation, misdirection, and the promise of a guaranteed windfall and/or loss is all that is

needed to nudge some Retail Investors to make a decision that they would not have made

otherwise. After all, there is a 50% chance of winning the car, an impossible chance for the coin

to land on heads, and three is less than four.

Case Study 2: In that same October article I referenced the companies Arcturus Growthstar

Technologies Inc (CSE:AGS, OTC:AGSTF) and Namaste Technologies Inc (CSE:N, OTC: NXTTF).

Namaste, for example, just announced monthly revenues in excess of $1 million and a 1308%

increase in traffic. As with Heliospectra, my referencing these companies was based on the

relevance of the topic and solely on due diligence/monitoring without any charting. You are

encouraged to investigate these on your own. However, the ROI on both are over 150% since

that article.