While companies plod along executing on their business plans, frequently taking months or years to bring products to market and develop meaningful profits, the stocks underlying the Company can be incredibly volatile. While the business itself takes time to develop, investor sentiment into the future of the Company doesn’t maintain anything resembling a slow growth curve. Instead, it can run the range of euphoria or despair. Frequently a stock can reflect both these emotions multiple times in the same year.
Patriot One is a classic example of this. Prior to FCC approval, the shares bounced along, with investors basically ignoring the potential. Then, approval and WHAM!, the stock runs from $.60 to $1.50.
Until people realize it’s going to take a while for revenues, at which time the shares retreated to around $.80, an almost 50% reversal. The stock didn’t stay there long however as the horrific Vegas tragedy struck and investors suddenly realized that Patriot One was the company best positioned to assist casinos (and others) with unobtrusive security measures. Which drove the stock to just over $2 per share.
Since then, shares of Patriot have traded off again. The euphoria of every casino buying many units has turned into the boredom of units not being available for sale until Q3. It should also be noted that, on that move up in the stock, the Company took advantage of the strength to sell some shares at around $1.60 USD ($2.00 CAD).
From my perspective, now is the time to be acquiring more shares in PTOTF. The stock is back to its trend line. Meanwhile, we are nearing the important catalysts of additional installations and (hopefully) systems integrator partnerships. Patriot One is now about 4 months away from production beginning and actual sales. It makes sense that the stock should be moving higher into that event.
I believe shares of PTOTF are poised to rally back to the $1.60 level in the near term. On May 17th, the shares from the Canaccord financing will be free trading and we’ll likely see some come to market if the stock is higher than that price. However, expect those shares to be consumed by investors as momentum builds into the official product launch.
Now is a quiet time in Patriot One. Investors are anxious for the next piece of positive news. When we get it, the stock will likely go on one of its patented runs higher. Meanwhile, forward looking investors who are getting ahead of the curve, are likely picking up some shares here and now.Tailwinds' Disclaimers & Disclosures: For a full list of disclaimers and disclosures, please visit http://