Lost confidence in NightCulture

I sold my NightCulture (NGHT) shares today for a 37% loss since mid-September. This was, obviously, a bad trade. The Q3 numbers were disappointing and although this thing could easily triple (or more) within a year, I am less confident in it now, so since it is December I decided to harvest the loss for tax purposes.

The company lost $222,000 in Q3 and grew revenues about half as fast as expected. The gross margin was disappointing.

Still, at today’s $0.03 closing price, NGHT is only worth about $2M to $3M. The stock has been hanging out at 52-week lows and there is a lot of pessimism priced in.

I previously wrote about NGHT in NightCulture: a divergence of price and results.


Disclosure: At the time of this writing, NGHT is $0.03 and I have no position.

Nat Hunt

Leave a Reply

Your email address will not be published. Required fields are marked *