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MJ Stocks

Started by Orphan, September 18, 2018, 08:28:43 AM

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Orphan

Asking what people's opinions are on the MJ industry. Some of these stocks are flying off the handle right now.

Do you like any of them or do you think it is a flash in the pan ?

Young And The Invested

#1
Seeing how far they're jumping without any tie back to fundamentals, these look like the next speculation mania after cryptocurrencies have fallen out of vogue.  To anyone "investing", be careful.  Make sure you read everything online and not just those items which justify your view.  Confirmation bias, among other cognitive biases, is the currency of speculation.

That being said, I'm exposed to the MJ market through owning SHOP shares.  I didn't purchase the stock a while back because of MJ but the company's exclusive deals with all the Canadian provinces could be a huge tailwind as legalization nears in mid-October.  Will be interesting to see how it all develops.
https://youngandtheinvested.com/

Orphan

Quote from: Young And The Invested on September 18, 2018, 10:58:09 AM
Seeing how far they're jumping without and tie back to fundamentals, these look like the next speculation mania after cryptocurrencies have come out of vogue.  To anyone "investing", be careful.  Make sure you read everything online and not just those items which justify your view.  Confirmation bias, among other cognitive biases, is the currency of speculation.

That being said, I'm exposed to the MJ market through owning SHOP shares.  I didn't purchase the stock a while back because of MJ but thee company's exclusive deals with all the Canadian provinces could be a huge tailwind as legalization nears in mid-October.  Will be interesting to see how it all develops.

Interesting indeed. I bought into five companies and all have done well, with the exception of one. I have definitely not sold the farm and really don't anticipate putting anymore cash into any of them. I think I am just going to hold them and see where they go. One Canadian company might and it is speculative might develop a JV with Coke. If that happens it will interesting to see how that may play out..

Bonsai

The only stock with a MJ connection I would consider investing in (do your due diligence) is Constellation Brands (STZ), a $40 billion market cap spirits marketer that is buying into the MJ industry.  I just started options trading the others I know about (e.g., CGC, TLRY) with small position so I won't know if my bets paid off until the option expiration date.  I feel the long term future for the industry is promising.

Orphan

Quote from: Bonsai on September 20, 2018, 09:08:55 AM
The only stock with a MJ connection I would consider investing in (do your due diligence) is Constellation Brands (STZ), a $40 billion market cap spirits marketer that is buying into the MJ industry.  I just started options trading the others I know about (e.g., CGC, TLRY) with small position so I won't know if my bets paid off until the option expiration date.  I feel the long term future for the industry is promising.

Thanks Bonsai,
I am with you on the industry and the long term future. It seems very volatile right now and difficult to gauge when you should take profits and keep some dry powder. Look at LXRP, they have some interesting technology related to the industry without being involved in the growing of any product...

hyperobjeckt

Quote from: Young And The Invested on September 18, 2018, 10:58:09 AM
Seeing how far they're jumping without any tie back to fundamentals, these look like the next speculation mania after cryptocurrencies have fallen out of vogue.
yeah, valuation seems wacky on every MJ stock I've looked at... clearly there is a lot of potential revenue in this business but nothing is worth owning at these prices imo. The closest I've come to buying any MJ stock was $SMG which I ended up passing on earlier this year.