Investing

Marijuana Stocks

  • Last Updated:
  • Sep 23rd, 2017 10:26 pm
Deal Addict
Sep 12, 2006
1091 posts
130 upvotes
Been a strong couple of weeks for the sector. Anyone thinking of shorting? Winking Face
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May 2, 2006
4952 posts
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GTA
ISOL: Day 3 of epic run. 19.72% gain today!

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May 2, 2006
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ISOL was a nice x2 gain over one week for those who have been paying attention, now consolidating. TGIF is poised for a good run as well, IMO.
Sr. Member
Oct 11, 2010
888 posts
263 upvotes
Charlottetown
I've been in and out of weed stocks for about a year now. For anyone looking to get in I think this is a pretty good buying opportunity right now. DD as always of course but if you buy in now I think you will do all right in the coming months.
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Feb 15, 2006
6702 posts
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Toronto
jfall wrote:
Aug 4th, 2017 3:26 pm
I've been in and out of weed stocks for about a year now. For anyone looking to get in I think this is a pretty good buying opportunity right now. DD as always of course but if you buy in now I think you will do all right in the coming months.
What is your reasoning?
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Oct 11, 2010
888 posts
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Charlottetown
Arrgh wrote:
Aug 4th, 2017 11:32 pm
What is your reasoning?
They've been beaten down so *some* of them are good pickups right now at these levels especially APH and ACB. the reason for the beat down is complex but it is mostly due to a recent article about concerns with companies that have US exposure that really just needed clarifying but of course people overreacted to it. The whole sector took a hit this week. You can learn more at http://www.bnn.ca/commodities/video/reg ... re~1181905 & http://archive.is/PuQuJ

There is a lot of upcoming catalysts that should drive the prices higher in the coming months. Many quarterly earning reports for big guys like ACB and WEED, legislation starting back up in the fall and of course less than a year away from legalization date July 1st.
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May 2, 2006
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TGIF finally closes PP. Should see some movement tomorrow as the news was posted late this afternoon.
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Jul 11, 2011
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Ontario
izzyzz wrote:
Aug 16th, 2017 4:24 pm
TGIF finally closes PP. Should see some movement tomorrow as the news was posted late this afternoon.
Good thing you didn't specify in which direction! Smiling Face With Sunglasses
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May 2, 2006
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hebsie wrote:
Aug 17th, 2017 2:26 pm
Good thing you didn't specify in which direction! Smiling Face With Sunglasses
LOL... Not enough volume... yet.
Jr. Member
Apr 23, 2010
181 posts
36 upvotes
Pickering
izzyzz wrote:
Aug 17th, 2017 4:16 pm
LOL... Not enough volume... yet.
I too have been skiming some purchases as each of my watchlist stocks have been beat up... seeing healthy returns and with a promising future i think i will keep adding
Member
Sep 28, 2010
346 posts
67 upvotes
Surrey
What's a good stock to invest in, or follow? Been wanting to get in but unsure if i should?
Sr. Member
Oct 6, 2015
601 posts
286 upvotes
Anyone studying these companies coming to the realization that they "think" they'll be able to charge the same prices for "legal" weed, as the illicit people are selling for "illegal" weed?

Such expectation seems wildly out of whack to me. Marihuana costs the same to produce as, say, raspberries, gram for gram. In other words, less than a buck a gram. The infrastructure already exists to produce large amounts of it, and since its basically a 'weed', its not like producing it is difficult.

So why wouldn't the prices come down to a buck or two a gram at the most? What does that do to all these pie-in-the-sky pro forma projections of massive margins and spreads?

Also, will more people smoke weed if its 'legal'? I have a hard time believing that. Anyone who wants weed already has weed and is smoking it.
Sr. Member
Oct 11, 2010
888 posts
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Charlottetown
purplekush604 wrote:
Aug 25th, 2017 11:05 pm
What's a good stock to invest in, or follow? Been wanting to get in but unsure if i should?
There are lots out there but you'd be best off sticking with the top three or at least researching them and going from there. That would be WEED, APH and ACB. You could also consider the marijuana ETF "HMMJ" as well which has broad exposure to the sector.
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Oct 11, 2010
888 posts
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Charlottetown
burnt69 wrote:
Aug 27th, 2017 1:12 am
Anyone studying these companies coming to the realization that they "think" they'll be able to charge the same prices for "legal" weed, as the illicit people are selling for "illegal" weed?

Such expectation seems wildly out of whack to me. Marihuana costs the same to produce as, say, raspberries, gram for gram. In other words, less than a buck a gram. The infrastructure already exists to produce large amounts of it, and since its basically a 'weed', its not like producing it is difficult.

So why wouldn't the prices come down to a buck or two a gram at the most? What does that do to all these pie-in-the-sky pro forma projections of massive margins and spreads?

Also, will more people smoke weed if its 'legal'? I have a hard time believing that. Anyone who wants weed already has weed and is smoking it.
Medical side alone is going to be huge, look at the opiate problem for starters, weed may be the saving grace there to get people off of other shit that is killing them. Oil is going to be gigantic IMO and I think people especially older people who are against weed will start opening up to it once it's legal and once they see that they don't have to smoke it and that it can replace some of their other meds etc.

Also another thing that will be huge is when insurance companies/health plans start covering medical marijuana. Think of how much sales will increase when people get their weed covered for free or at a very low cost via insurance. Weed being covered by health plans will be a HUGE blow to the black market. No medical user will want to buy black market when they can claim taxes on their legal weed and get it covered by insurance etc.

In terms of prices you are probably right, it can be produced cheap but so can alcohol and tobacco. In order for them to stomp out the black market prices will need to be kept in line with black market or slightly higher due to the "strict testing" and regulations the product has to meet by Health Canada (that deserves some premium does it not?)

On top of all this, there is a lot of other things to consider as well such as other countries. Some LPs are all ready signing deals and getting their foot in the door to supply other countries such as Germany for example. Who knows how big the international market may be in the future.. my guess is probably fairly significant! Take a company like WEED for example they are even looking in to getting in to the beverage industry with their Pot-O-Coffee line. There is tremendous potential for the weed sector in its entirety.

As of right now I do think the LPs have some work to do in order to compete with the black market in terms of product selection and pricing. I think the gap will definitely close more and more as time goes on, but right now I think black market has an edge in many respects, but there are some benefits for using an LP too. The fact that LPs can only sell flower and oil is definitely a hindrance, but that may change in the future if other concentrates/edibles are allowed.

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