Two years ago I bought a house with a one acre Pinot vineyard in Northern California. I had the vineyard removed! The money in the wine business is in marketing, not in growing grapes (kinda similar to coffee!). Like almost all farming ventures, growing things is very hard work, risky, and with very thin margins. I'm literally surrounded by vineyards, so didn't feel it necessary to have my very own. 'Nuf said!
For me to be enthusiastic about PDP, I need to see accumulation, in other words volume behind upward moves in the stock price. My thesis is that "someone always knows more than I do, and they've acted on that knowledge." When a stock languishes despite having such wonderful prospects, the questions begin: "What am i missing? If things are as good as they sound, why aren't insiders and institutions loading up the truck?" Sometimes selling begits selling, in other words, no rhyme or reason to it. That may be the case here. Or it could be geopolitical risk (price controls?) Or that Gusella has a bad rep. Or it could be just about anything. The sum total of all buying and selling is reflected in the stock price, and thus in the chart. For some reason PDP isn't getting accumulated, which isn't something I like to see when I'm a stockholder.
At present there is a sequence of lower highs and lower lows, a "downtrend" in other words. That trend shows that sellers step in and unload shares into strength. Not until that changes will PDP be able to move higher. It needs to break that line of resistance with some volume; the volume validates the "change in character" (ie, from a downtrending stock that is getting distributed, to an uptrending stock that is getting accumulated). That will get me enthusiastic.
AEN is a good example of a stock that is getting accumulated right now.
Pino |
