Newstrike Brands Ltd NWKRF

RE:RE:RE:Hey.. Havarti here..

[quinlash]

Its possible I guess but what you are saying is that many shareholders exited and the only ones buying were banks ?  Seems unlikely IMO.  HIP is already part of a few ETFs so they have been buying for about 6-8 months now and add / subtract as investors buy the ETF. 

IMHO the overall sentiment for investing started to go really sour mid 2018 which caught up with the MJ sector post-legalization.  The eval numbers and SP for most of the LPs where absolutely insane and companies were trading well over-value.  Once the hype burned off and SPs started to fall it was an all-out panic run for the door and SPs actually dropped back to fair market value or below pretty quick.  For the MJ sector this counldn't have happened at a worse time we started to move into tax-loss selling season at year end... traditionally SPs do some level of pullback in the final days of trading and sometimes drop as much as 10% in the closing minutes of trade on the last day.

Investors tend to wake up from their slumber in January and see these low prices then start to buy.. more people see the SPs going up and they start to buy... then new investors start rolling in the SP really runs.  This is being played out right now on those stocks that have had a ton of media coverage such as ACB and WEED which are pretty much back to trading at their full eval numbers and running a very high risk of a correction in the next few weeks.  Newstrike has been out of the media coverage for awhile so the hype factor on this is minimum IMO and we continue to trade under eval, even under the 200 day average.

Do I think the SP could pull back from here?  Yup.. of course it can, its the stockmarket and if you think a SP can't go down you haven't been trading for very long... You really need to be trading with blocks of cash, not going all in on one stock at a time.  If you invest half, a third, a quarter etc of your money at a time you can establish a core holding of shares in a company and always have money to average down in the event of a pullback and do the long haul play on a company that has a good ROI over the longhaul.

So yes, long story short.. HIP could pullback in the coming weeks however it is all going to depend on how many people hit the SELL BUTTON... if you think you are on this at too high of a cost compared to the eval of the company then do it, sell.  If you think you have a good average and looking for that longer term ROI (Eg. When edibles go legal in Oct) then hold, average down and be patient.