Investing

Cannabis (Marijuana) Stocks

  • Last Updated:
  • Nov 25th, 2020 10:40 am
Newbie
Sep 9, 2019
52 posts
27 upvotes
Careful guys! I lost like 70K in the worst of the "weed" stocks. It’s actually a cbd stock Isodiol (ISOL). At one point I was up over 1200% and got greedy thinking it would do something like GW Pharmaceuticals.

To those of you still investing in MJ stocks, I would tell you diversify. Quite frankly, right now I think it’s better to trade most MJ stocks to than to invest (long).
Deal Fanatic
Apr 25, 2006
6112 posts
1054 upvotes
wow HEXO is a killer
"If you make a mistake but then change your ways, it is like never having made a mistake at all" - Confucius
Deal Addict
Jan 22, 2006
4932 posts
2458 upvotes
Northside
TatiLovesFinance wrote: Careful guys! I lost like 70K in the worst of the "weed" stocks. It’s actually a cbd stock Isodiol (ISOL). At one point I was up over 1200% and got greedy thinking it would do something like GW Pharmaceuticals.

To those of you still investing in MJ stocks, I would tell you diversify. Quite frankly, right now I think it’s better to trade most MJ stocks to than to invest (long).
I lost a crapload with ISOL. But that doesn't reflect on all cannabis stocks.
Deal Addict
Mar 22, 2010
2877 posts
794 upvotes
zaidyboy wrote: I lost a crapload with ISOL. But that doesn't reflect on all cannabis stocks.
Not at all because some of us are making that money back from 2 days ago.
Deal Fanatic
User avatar
Dec 28, 2007
8063 posts
4458 upvotes
Alberta
AssetsKey wrote: I will get some Tilray today.
I got ACB (3 days ago), WEED (2 days ago), CRON (yesterday), and Tilray (today).

Buying into the recovery works great (if you know how to see the trend).
Worked out for me also. Got APHA 5000@5.01 and ACB 5000@2.92
Newbie
Sep 9, 2019
52 posts
27 upvotes
zaidyboy wrote: I lost a crapload with ISOL. But that doesn't reflect on all cannabis stocks.
I agree that ISOL’s performance doesn’t reflect on all cannabis stocks but if you look at how they have been performing all year, they aren’t doing good enough to be long, anyone who understands even the most basic technical analysis will see this. I think I would only get in (long) after seeing a bit of steady increase first. But I am 100% for trading them. Not necessarily day trades. Even swing trades. Just not time to be long.

That’s just my opinion though. People have PhD’s and have dedicated their lives to studying the markets and still can’t predict it. That’s because human emotions, feelings and opinions aren’t always predictable, and that’s one of the things that drives the markets. That’s my little disclaimer.
Deal Fanatic
Aug 15, 2003
8478 posts
222 upvotes
Toronto
CA:WEED goes from $18 to $27 within a week, if only I wasn't swimming in red and had the extra money to put in last week.......
Deal Fanatic
User avatar
Dec 28, 2007
8063 posts
4458 upvotes
Alberta
MtX wrote: Can anyone post the contents of the article??
Here u go:

Canopy Growth led a cannabis stock rally with double-digit gains Wednesday morning. The jump came after analysts at Bank of America Merrill Lynch raised their rating on Canopy to Buy.

The back story. Canopy Growth (ticker: CGC) is one of Canada’s biggest marijuana growers, but its stock price has floundered as investors grew tired of the huge losses and disappointing sales that have dragged on the industry.

Canopy stock has shed half its value in the trailing one-year period and is down 36.3% in 2019. That fall has weighed on stakeholder Constellation Brands (STZ), which owns 38% of Canopy.

Canopy is still looking for a replacement for CEO Mark Zekulin, who became its sole CEO—albeit a temporary one—after co-founder Bruce Linton was fired. Last week, Canopy reported a quarterly loss that an analyst at MKM Partnerscalled “astounding.”

Back in September, BofA Merrill Lynch analysts Christopher Carey and Lisa Lewandowski lowered their Buy rating on Canopy stock to Neutral when it was at $24.74. At the time, the analysts wrote that estimates for Canopy and some of its peers were “far too high” given a slowdown in Canadian provinces ordering pot, a temporary headwind due to high inventory levels resulting from a lack of provincial retail stores. Indeed, the stock then fell about 38% to its $15.32 close on Monday.

What’s new. The team at BofA Merrill Lynch think the worst is over for Canopy stock. They upgraded their rating back to Buy from Neutral in a research note early Wednesday morning.

Given the stock’s more than one-third drop, they now feel the valuation is reasonable, with the potential for future earnings reports to meet or even surprise Wall Street estimates, “for maybe the first time in Canopy’s history as a public company.”

They wrote that investor data might soon look better, noting solid readings on Canadian retail sales, which they expect to continue. Readings on volume data, meanwhile, have appeared negative recently due to retailers and distributors reducing their inventory levels. That’s something the analysts expect will improve as inventory resets to more normal levels.

Canopy stock jumped 12.5% to $17.24 around 11:22 a.m. Wednesday, while the ETFMG Alternative Harvest exchange-traded-fund (MJ) was up 3.4%. The S&P 500 was down 0.1%.

Looking ahead. The BofA Merrill Lynch analysts maintained a price target of $19, but before you buy, keep in mind that was following its close Monday at $15.32.

“To be clear, things are by no means perfect,” they added. “Canopy remains a show-me story with much to prove and a new CEO still ahead. However, the worst looks over and, if momentum returns, the market may again contemplate what Canopy could become.”

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