Investing

Cannabis (Marijuana) Stocks

  • Last Updated:
  • Mar 20th, 2019 8:44 am
Deal Fanatic
Jul 1, 2007
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2K6TSX wrote:
Apr 27th, 2017 5:26 pm
What's triggering this sell off?
It's not a sell off insomuch as that it's some kind of negative force against pot stocks. It's simply a reduction in euphoria. You have to realize that when you were buying these stocks at price $X last fall you were buying at the same time as everyone else at inflated values. Now they're getting closer to reasonable (but still inflated) valuations which properly reflect fundamentals and potential of these companies.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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Dec 30, 2014
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booming
Thalo wrote:
Apr 28th, 2017 8:33 pm
It's not a sell off insomuch as that it's some kind of negative force against pot stocks. It's simply a reduction in euphoria. You have to realize that when you were buying these stocks at price $X last fall you were buying at the same time as everyone else at inflated values. Now they're getting closer to reasonable (but still inflated) valuations which properly reflect fundamentals and potential of these companies.
what?
let me break it down for you.
they will be selling weed to canadians, legally.
you should be buying and sleeping well.
look at
Molson Coors Brewing Co
it was $8 in 1995
this is not rocket science guys.
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Feb 1, 2015
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MB
2K6TSX wrote:
Apr 27th, 2017 5:26 pm
What's triggering this sell off?
Attempt by the primary force in the market to re-accumulate shares prior to the next major uptrend.
This is especially apparent when studying the market activity of Canopy Growth.

The long decline and the accelerating upward and downward volatility have scared momentum traders, while supply has been gradually absorbed by the Bulls near and at each low.
Volume has also been in net decline since the flash correction from Nov. 16th. That would indicate that weak holders are exhausted and have liquidated their position.
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Jan 9, 2011
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Markham
Interesting thoughts. I'm in and have been slowly adding but can't say I'm not somewhat worried lol. I'm avg around 9.40 right now..
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Jul 1, 2007
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save3save4 wrote:
Apr 28th, 2017 10:12 pm
what?
let me break it down for you.
they will be selling weed to canadians, legally.
you should be buying and sleeping well.
look at
Molson Coors Brewing Co
it was $8 in 1995
this is not rocket science guys.
Everyone knows this already and it's reflected in prices. Stocks don't go up when something that is already expected happens. Stocks go up when the unexpected (positive) happens, and they can go down a lot of they fall short of expectations.

Thus far, the Feds' outline on how it will be legalized has fallen short of market expectations, thus the pull-back.

There are still a lot of signs that the recreational marijuana industry will be extremely lucrative, however this is already reflected in stock prices.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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Nov 22, 2015
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Thalo wrote:
Apr 30th, 2017 12:26 pm
Everyone knows this already and it's reflected in prices. Stocks don't go up when something that is already expected happens. Stocks go up when the unexpected (positive) happens, and they can go down a lot of they fall short of expectations.

Thus far, the Feds' outline on how it will be legalized has fallen short of market expectations, thus the pull-back.

There are still a lot of signs that the recreational marijuana industry will be extremely lucrative, however this is already reflected in stock prices.
You seem to be confusing short-term volatility with long term growth. Stock prices and market cap tend to increase over time, if the company has strong fundamentals and continued profitability.

How did legislation fall short of market expectations? The legislation is exactly what the Liberals have been saying repeatedly over the past year. No surprises there.

Are you saying that we've already reached the peak for MJ stocks and that the Fall 2016 highs are as high as they'll go?
Jr. Member
Mar 1, 2011
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Can anyone speak to the quality of the marijuana from aphria, aurora and canopy? And what current customers have to say about these companies?

I think someone mentioned there were lots of complaints from aphria customers
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Jul 1, 2007
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superfresh89 wrote:
Apr 30th, 2017 12:33 pm
You seem to be confusing short-term volatility with long term growth. Stock prices and market cap tend to increase over time, if the company has strong fundamentals and continued profitability.

How did legislation fall short of market expectations? The legislation is exactly what the Liberals have been saying repeatedly over the past year. No surprises there.

Are you saying that we've already reached the peak for MJ stocks and that the Fall 2016 highs are as high as they'll go?
Better for the LPs would have been if the proposed legislation didn't allow for growing your own.

Tell me one Cannabis company that has strong fundamentals and doesn't already have the next ten years of growth baked into its price.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
Deal Guru
Mar 20, 2003
10112 posts
451 upvotes
Moncton, NB
Thalo wrote:
May 1st, 2017 11:46 pm
Tell me one Cannabis company that has strong fundamentals and doesn't already have the next ten years of growth baked into its price.
I've been consolidating my shares from other companies into Aurora because they have a large new greenhouse opening up. I haven't read much about it lately but I think I saw it would increase its capacity to either the same, or more, than Canopy which should hopefully result in a share price increase. Of course that might just be hype with the rest but that's the one I'm putting my money on as I believe it has room to grow.

That said, I'm down 15-35% in MGW, THC and WEED because I bought last year and am waiting to legislation to see what'll happen.
Last edited by Feneant on May 2nd, 2017 6:50 am, edited 1 time in total.
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Deal Addict
Jul 28, 2009
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Cronos (MJN) distribution in 500 German pharmacies, wow.
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Jul 1, 2007
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Feneant wrote:
May 2nd, 2017 6:50 am
I've been consolidating my shares from other companies into Aurora because they have a large new greenhouse opening up. I haven't read much about it lately but I think I saw it would increase its capacity to either the same, or more, than Canopy which should hopefully result in a share price increase. Of course that might just be hype with the rest but that's the one I'm putting my money on as I believe it has room to grow.

That said, I'm down 15-35% in MGW, THC and WEED because I bought last year and am waiting to legislation to see what'll happen.
Aurora currently has an $872MM market cap. Let's give it an optimistic 30x p/e (accounts for some growth potential) in a few years when their new greenhouse is up and running. To justify today's price, or a higher price tomorrow, it'll have to generate at least $30MM in net income, or around 9 cents a share. Earnings consensus is 8 cents in 2018. So the price today is a reasonable price for the stock to have in 2018, provided it meets its targets and continues to be on a growth trend at that time.

What I'm saying is, don't expect the stock to go up just because their revenue will go up in future years. The current stock price already reflects this. If they miss their revenue target and, say, only generate 7 cents a share in profit, it will go down, not up.
Money Smarts Blog wrote:
Nov 29th, 2010 11:18 am
I agree with the previous posters, especially Thalo. {And} Thalo's advice is spot on.
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Nov 14, 2006
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Thalo wrote:
May 3rd, 2017 9:29 pm
Aurora currently has an $872MM market cap. Let's give it an optimistic 30x p/e (accounts for some growth potential) in a few years when their new greenhouse is up and running. To justify today's price, or a higher price tomorrow, it'll have to generate at least $30MM in net income, or around 9 cents a share. Earnings consensus is 8 cents in 2018. So the price today is a reasonable price for the stock to have in 2018, provided it meets its targets and continues to be on a growth trend at that time.

What I'm saying is, don't expect the stock to go up just because their revenue will go up in future years. The current stock price already reflects this. If they miss their revenue target and, say, only generate 7 cents a share in profit, it will go down, not up.
Again as I tell people , are you are investing in these companies long term or short term/swing trading? swing traders making lots of money on this sector if you know what your doing, if your long do some DD and invest in the company then come back in few years and you will be happy regardless with the results 2019+
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Jul 11, 2015
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lilmikey wrote:
May 4th, 2017 8:59 am
Again as I tell people , are you are investing in these companies long term or short term/swing trading? swing traders making lots of money on this sector if you know what your doing, if your long do some DD and invest in the company then come back in few years and you will be happy regardless with the results 2019+
so who are u saying is best long term?
weed, aph, and ogi, acb? how about mgw? probably anyone in the hmmj holdings hey?
what u think about cnz? i was thinking of putting in a long position on these guys. but I don't really think the industry is going to really care or effect these guyses business. seems like they cant even meet the need of the feed industry, or whatever other markets they can sell too already, can they? I did like how they shot up during the post usa election though. could have made like 5x ur money if u (unrealistically) had perfect timing :P
You're the average of the five people, you most associate with.
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jointedhornet wrote:
May 4th, 2017 12:45 pm
so who are u saying is best long term?
weed, aph, and ogi, acb? how about mgw? probably anyone in the hmmj holdings hey?
what u think about cnz? i was thinking of putting in a long position on these guys. but I don't really think the industry is going to really care or effect these guyses business. seems like they cant even meet the need of the feed industry, or whatever other markets they can sell too already, can they? I did like how they shot up during the post usa election though. could have made like 5x ur money if u (unrealistically) had perfect timing :P

I like APH , ACB at the moment. WEED has a big market share but they paid to get where they are, their stock have been heading in a downtrend for last 2 months now but again when all these companies are producing and selling with all their builds complete plus rec happens at full rate it will be a different beast.

Right now they are having trouble keeping up for their clients, so the demand is already there. The big guys are spending lots of our investor money trying to fill all current orders let alone next years rec market (when that happens) will be even more, so spending today is what is needed for tomorrow even though showing losses. After next summer when all builds complete then having financials every quarter to show they are profiting will stop making this sector so volatile and show a steady uptrend. People who believe in these companies will win regardless, time is all you need. If you cant wait or don't like seeing swings , come back next year and invest or play the swings lol

I got SL at 1.60 saw it go down to 1.20 , people freaked and sold to the sharks, then came back up to 1.80, now at 1.50. I didnt do anything as i'm in long but pop in to still see whats going on with my money here and there. I have a trade job so cant watch the market at a desk, learning more about stop loss/exit points lately so maybe wi'll try a swing trade soon , who knows.

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