A sell-off wave that had engulfed Belgravia Capital International Inc (CNSX:BLGV) appears to have lost momentum. Over the past four months, the stock has resorted to trading in a range, amidst improving sentiments in the market. The announcement that the company is eyeing acquisition investments in the gaming industry has ones again reinvigorated investor interest in the stock.
Belgravia Capital Holdings Price Analysis
The pursuit of opportunities in the gaming industry comes months after the company confirmed it was in the process of developing active pharmaceuticals ingredients based on cannabinoids. The Company is eyeing opportunities in the multi-billion cannabis sector that continues to show strong promise.Belgravia Capital remains engulfed in a strong bear trend after the underperformance of the first half of the year. The stock has lost more than 80% in market value since the start of the year, as short sellers have continued to push the stock lower. With the stock currently languishing near 52-week lows, all indication is that a bounce back could be in play in the coming days.A rally from the CA$0.02 handle to the CA$$0.03 mark, in recent days, has once again reinvigorated hope about the stock’s long-term prospects. The stock now needs to stabilize above the CA$0.03 handle to reaffirm sentiments that the bear run has run its course.Above the CA$0.03 mark, the stock could make a run for the CA$0.04 handle, seen as the immediate resistance level. However, for the stock to be considered a long-term bounce back play it first needs to rise and stabilize above the $0.05 mark.
About Belgravia Capital
Belgravia Capital is an investment company that operates three core business divisions. Under the incubator division, the company invests in early-stage companies in various sectors with huge prospects of growth. Belgravia holdings, on the other hand, invest in private and public companies with a view of generating long-term value. The Royalty and Management Services operates a royalty and fee income model.
Gaming Industry Acquisition Push
Belgravia Capital has underperformed for the better part of the year. Investor’s sentiments have hit rock bottom, amidst growing concerns about its ability to continue operating as a going concern. However, the company appears to be working behind the scenes in a bid to revitalize its growth prospects.For starters, it has engaged the services of Haywood Securities in pursuit of crucial advice and services as it eyes investment opportunities in the gaming sector. Haywood is to provide valuable information and insight as the investment company pursues potential acquisition targets in the gaming industry.
“It is the intention of Belgravia to acquire private companies with the purpose of growing their asset base and subsequently realizing value by way of special stock dividend to Belgravia shareholders. The special stock dividend of the acquired companies will provide liquidity to Belgravia and its shareholders,” Belgravia Capital in a statement.
Cannabinoids Focus
In addition, the company is also in pursuit of opportunities in the cannabis sector. In August, it confirmed it was actively advancing its incubator division with an eye on developing active pharmaceutical ingredients based on Cannabinoids.Belgravia is quietly advancing its Dermatology research and development unit as it looks to leverage the use of cannabinoids on the treatment of various unmet medical needs. The company is currently working with Dr. Sam Hanna the Chief Medical Officer and Dr. Shoaib Sheikh as part of the latest push targeting cannabinoids.The company has already established molecular targets for specific cannabinoids that it is exploring as potential treatments for acne. In addition, the company is also expanding its portfolio of specialized cannabinoid and terpenoid molecular approaches.
“The company is evaluating specific delivery emulsion technologies. These technologies will be important for pharmacokinetic studies and the buttressing of intellectual property in the form of patents,” said Mr. Sidney Hummel, Belgravia Dermatology Director.
Bottom Line
Belgravia Capital Holdings languishing at all-time lows should be a point pt concern to any investor. However, the fact that underlying fundamentals are showing signs of improvement continues to reaffirm the company’s long-term prospects.The company has already underlined its commitment to pursuing opportunities in the multi-billion cannabis sector. The pursuit of opportunities on the use of cannabinoids to address various unmet medical conditions is another development that points to a bright future.Price action indicates that the stock is currently trading at the same level from where it rallied late last year to all-time highs of $0.29, at the start of the year. That said it, might be wise to wait for the stock to first rally and stabilize above the $0.05 to enter positions as a long-term play.We will be updating our subscribers as soon as we know more. For the latest updates on CNSX:BLGV, sign up below!Disclosure: We have no position in CNSX:BLGV and have not been compensated for this article.
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