RE:RE:Here's hoping for a good end of week Wow!!
I wonder if you went short??
IMO, this company will have far less downside and FAR FAR FAR more upside then its "overvalued peers".
MJInvestor101 wrote: VIX is hovering at 13.73 (just below 14) where we had the big panic before the state of the union speech. (2 days ago) before that it had not broken that limit since August.
8 of 95 weed stocks huge in the red today and the divestment of Aphria US assets might be a foreshadow to the CSA delisting companies with US assets. Aphria was in close talks with them and last said in an interview that they could not get rid of the assets due to a contract agreement requiring them to hold them for 6 months, but looks like they solved that now…which would suggest there was some kind of urgency to get it done. 2 weeks ago the CSA said they were reviewing their policy. Not a coincidence
Sunniva is a good company but this has too many headwinds. Overvalued peers have driven up relative valuations.
In case you are thinking this down draft is warrants, or market makers or whatever other excuse. This is a weed sector meltdown coupled with a general profit taking from the overall overheated equity market. The tide is going out and everyone will suffer when the money walks (albeit in a relative manner but still suffer none the less.
This is going a lot lower. Even the underwriters of some stocks have been caught off guard as prices fall below the private placements. (PAT, Namaste)
Just be careful. The music stopped. Don't be the last one out or you will have to clean up.
BTW the 8 that were green had very specific catalysts. Some of the 87 that were red also had catalysts but they simply were either too overvalued to start or just not enough interest to warrant staying in the stock as the sector tide flows out.