XEBEC ADSORPTION INC

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hello,
What I should do with my stocks for XEBEC ? my average cost is 5.72. Should I sell now or wait to reduce the lost ?

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Asked on July 26, 2021 9:44 am
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Hi there,

We can't really tell you what to do here. I always circle back to why I bought in the first place and whether or not the investment thesis still stands. Given your cost basis is 5.72, you likely bought before the company skyrocketed, or after it cratered. If you bought it after it fell from highs, then you would have bought after the company issued warnings and issues with respect to its accounting practices and revenue recognition. When this was first announced, we warned premium members that this was no a risky play.

Management is now in show-me mode and until it can prove that it can deliver against guidance and estimates, the markets aren't likely to give it the benefit of the doubt. Are you comfortable with that risk and waiting it out?

As you can see, it is not a simple yes or no answer and one must decide what is best given their own risk tolerance. I still own the stock (with a much higher cost basis) and am giving them a few quarters to see if they can turn it around.

Mat

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Posted by Mathieu Litalien
Answered on July 27, 2021 5:10 am