I thought Forbes was legit?
What if I told you that my relationships goals include having threesomes on a yacht with Ariana Grande in the Mediterranean? Sounds great, but, also ridiculous, right? Well, the highly respected Forbes magazine once gave Namaste Technologies a price target of $7.00, which I would argue is even more absurd.
Namaste was also pumped with similar gusto in another Forbes piece the week previous.
What’s worse is that it wasn’t some GETRICHNOWWITHWEEDSTOCKS! bullshit, it was none other than business giant, Forbes.
This should act as a reminder to never take price targets seriously – especially ones backed by no analysis beyond what a company says in their MD&A.
A $7.00 price target for Namaste would give the company a $2,150,100,015 market cap, for a company that drop ships vapes from China. The article goes on to predict than Cannmart will standup against Shopify as a retail platform.
“The company is well-positioned in the cannabis-related market in Canada, given its artificial intelligence-driven platforms and supply agreements with LPs in Canada as well as abroad. While the company currently sells only medical cannabis accessories, it expects to launch (subject to receiving a sales-only license) in the near term its medical marketplace, CannMart.com, which will enable it to procure and sell medical cannabis products. ”
But in reality, for an online store with no costly grow facilities their numbers are horrendous.
This is the reality of the situation, Namaste currently sits at $0.40, a jump to $7.00 would be a 1,650% jump. Sick gains.
This is what actually happened:
The reason websites and analysts make price targets is to get traffic. By the sounds of it, the authors of the price target post aren’t idiots. According to their bio:
Led by MIT engineers and Wall Street analysts, Trefis (through its dashboards platform dashboards.trefis.com) helps you understand how a company’s products, that you touch, read, or hear about everyday, impact its stock price.
The moral of the story is to trust yourself when making financial decisions, and don’t buy into the hype.