Cannabis news re Washington tomorrow December 3rd

originally I was optimistic about this sector several years ago, but it went nowhere and cannabis stock prices dropped for a long time. But now with a new cannabis friendly White House, plus increasing social acceptance of cannabis, maybe now's the time to jump on board.

I bought a little of each of those stocks, no more than a few hundred dollars each, and will scale into the ones that run up and dump the ones that go down, as usual. it is one of those sectors with considerable regulatory challenges, but if legislation passes on a more widespread scale then it could be a sector with huge, huge upside. As usual, I start skeptically and conservatively with a wait-and-see attitude, combined with position sizing.
 
KCalhoun said:
originally I was optimistic about this sector several years ago, but it went nowhere and cannabis stock prices dropped for a long time. But now with a new cannabis friendly White House, plus increasing social acceptance of cannabis, maybe now's the time to jump on board.

I bought a little of each of those stocks, no more than a few hundred dollars each, and will scale into the ones that run up and dump the ones that go down, as usual. it is one of those sectors with considerable regulatory challenges, but if legislation passes on a more widespread scale then it could be a sector with huge, huge upside. As usual, I start skeptically and conservatively with a wait-and-see attitude, combined with position sizing.
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lolwut? This shit's DOA in the senate.
 
Here4money said:
The point is they'd be positioned to flood the US market w/legal cannabis.
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Right, if those canadian companies already ship marijuana into the united states. Which would be smuggling, and I seriously doubt they do that. I see more profit potential with a U.S based company, and that's only if the senate allows this vote to pass, which I highly doubt he will...
 
Trader Curt said:
Right, if those canadian companies already ship marijuana into the united states. Which would be smuggling, and I seriously doubt they do that. I see more profit potential with a U.S based company, and that's only if the senate allows this vote to pass, which I highly doubt he will...
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key words "they'd be positioned to flood". Who's at a greater advantage, a fully operational company where Cannabis is legal, or one that's in a gray market and needs to ramp up for national demand?
 
KCalhoun said:
i'm in

APHA
ACB
CGC
CRON
GRWG
HEXO
MJ
NBEV
TLRY

Any others I'm missing? Thx.

fave = CGC
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If it's like the Canadian experience, a bubble will form in this sector of unknown duration followed by a crash as it becomes obvious making money in this market is harder then expected. I was looking at HMUS a Canadian listed etf concerning "US marijuana index". On the plus side, like Gold and Energy I like these off beat sectors that aren't heavily correlated with broader markets at this point. On the negative, concerning HMUS, it's already a double last year or so.

Given my distrust for IT valuations these days, and that the banks have already filled most of the value proposition in recent months, I like the following as potential plays : Biotech, US market related pot stocks, Cdn energy, Cdn mining. Not entirely sure on the current valuations in the first two but it's an excellent theme imo. If I had to choose one area at current valuations. I might choose Silver miners. A few months ago, I liked Copper miners, Cdn banks, beaten down Cdn energy but there has been a serious rally in all those areas in November.

Of course, given normal seasonality we might get a surprise rally in IT that I will miss just like I did most of this year. Just seems like poor risk/reward though at this point.
 
Nine_Ender said:
If it's like the Canadian experience, a bubble will form in this sector of unknown duration followed by a crash as it becomes obvious making money in this market is harder then expected. I was looking at HMUS a Canadian listed etf concerning "US marijuana index". On the plus side, like Gold and Energy I like these off beat sectors that aren't heavily correlated with broader markets at this point. On the negative, concerning HMUS, it's already a double last year or so.

Given my distrust for IT valuations these days, and that the banks have already filled most of the value proposition in recent months, I like the following as potential plays : Biotech, US market related pot stocks, Cdn energy, Cdn mining. Not entirely sure on the current valuations in the first two but it's an excellent theme imo. If I had to choose one area at current valuations. I might choose Silver miners. A few months ago, I liked Copper miners, Cdn banks, beaten down Cdn energy but there has been a serious rally in all those areas in November.

Of course, given normal seasonality we might get a surprise rally in IT that I will miss just like I did most of this year. Just seems like poor risk/reward though at this point.
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Good points, cannabis is still highly speculative sector. Agree miners are interesting, like copper FCX silver SLV. it's been interesting to see recent strength in CCL MGM mu
 
Pot stocks cannot truly grow until the US banking system is allowed to process money from pot sales. It is that damned simple. It must be legalized on the federal level so banks can handle the monies. Until then it is a dead end.

End of line.
 
The thing everyone misses with the pot market is that the market could be worth billions in the U.S. and every single grower could still go bankrupt or barely stay afloat. This is a commodity, no different from any other commodity except that we can be almost certain it's going to be vastly overplanted initially because of this mania around it. Which means supply is going to go through the roof and profitability is going to be crap. When that all settled down, you've got a product with very low barriers to entry to produce that's hard to differentiate which means it will always be a hyper competitive market with little to no profits. There's a game of musical chairs to be played initially here, but when the music stops it's going to be brutal.
 
Sig said:
The thing everyone misses with the pot market is that the market could be worth billions in the U.S. and every single grower could still go bankrupt or barely stay afloat. This is a commodity, no different from any other commodity except that we can be almost certain it's going to be vastly overplanted initially because of this mania around it. Which means supply is going to go through the roof and profitability is going to be crap. When that all settled down, you've got a product with very low barriers to entry to produce that's hard to differentiate which means it will always be a hyper competitive market with little to no profits. There's a game of musical chairs to be played initially here, but when the music stops it's going to be brutal.
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AMEN.
Not everyone misses it Sig.

I told @Overnight this over two years ago.




vanzandt said:
I'm not cynical... I just view it for what it is... its an agricultural product with an (as yet to be quantified) demand. All the counter-culture stuff means absolutely nothing. If there's a big demand, it will be commoditized and grown cheaply af. Bio-engineered strains aside... its still a weed. Its easy to grow. Or so I have been told. :rolleyes:

There's no money there Over-Night... most of these stocks will be synonymous to buying Bitcoin at $20K. Fundamentals matter in the long run. Paper tigers always and inevitably end up with broken bag-holders.

If you want long term... read that PDF the one member (Nursebee) posted with the thread "TSLA 2019". https://elitetrader.com/et/threads/tsla-2019.328906/
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EDIT... I love that last line about TSLA... on a split adjusted basis, it went from $61 to $600.
 
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