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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.