BNXA: Normal volatility or is there something more?

I opened a position a way back in BNXA, and added more on its ascent earlier in the year. It has been faltering with new lows daily more recently. I don’t think anything has changed fundamentally with the company. In fact, I think they’re doing well. Is there something more to this multi-month downtrend? I think Mat owns the stock. Do you have any insight here as to what’s going on?

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Asked on September 30, 2021 10:26 am

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Hi there,

Banxa is going to be a highly volatile and highly risky play. Its fortunes will be tied to those of crypto. As you've seen - crypto has taken quite a hit lately and Banxa along with it. Similar to gold - when gold prices take a hit, the stocks actually do worse than the price of gold itself. We are seeing similar action with crypto stocks. When cryptos struggle, the stocks themselves drop even more.

There is nothing in terms of company performance that is driving the price down - at least not in my own opinion. I continue to hold it with the recognition that it can go to $1.00 just as easily as it can go to $10.00. This industry is in its infancy and stocks like BNXA should be considered highly speculative.

Mat

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Posted by Mathieu Litalien

Answered on September 30, 2021 1:13 pm

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