RE:RE:RE:Closed at 1,77YAa nice strong up day....
The problems with TA is that the chart may read like its going down - but a big news event reverses that trend at a moments notice.
In the marijuana sector - it tips the scales.
With very favourable retail laws set by ontario - with what looks like 1000 pot shops set to open - that is a huge amount of distribution and revenue for weed companies.
so the metrics on their valuations shift. and momentum moves them in a different direction.
MY bet on this sector is that there will continue to be large positive news events moving things upward: aka
- USA states act/farm bill and eventually legal rec in 2020.
- mexico/germany and other european countries legalize.
- Larger than expected rec slaes/ larger than expected demand/ large tax revenues announced
- approval of edibles -
- large corporate partnerships with DIAGEO/Second CUP/ect rumoured and pending
as it relates to FIRE
- tsx will be huge (lots of people dont't buy venture stocks) much larger exposure and market.
- godrich/expansion.
- takeout (can happen at any time)
the news yesterday didn't move the needle bc of canopy - but we bounced nicely today bc the news in the backdrop suggests there is good fundamentals here.
a shitty stock wouldn't bounce.