COPIED QUOTE AND MAKES SENSE Alright I think I've seen enough BS, and it's just about time to chime in.
For starters - y'all need to stop crying. Seriously. If you can't stomach volatility, go buy a blue chip and be happy with your 5-10% profit a year. Those of you constantly complaining about the recent prices of MJ stocks really don't realize how the market works. Here's a hint - in a non-blue-chip NEW industry, you're going to have a great deal of volatility. As an investor it won't faze you - you're long term anyway. You know that buying and holding almost ANY of the top 10 MJ stocks will yield you more than buying a house and waiting the same amount of time. As a trader, you should be thankful you keep getting a chance to buy these companies with BILLIONS IN REVENUE THIS COMING YEAR for prices this low. For the new investors - here's a bit of advice - when the sky is falling, it's time for you to buy and hold. When things 'can't get any better', it's time you sell and wait for the next wave. Seriously - it's THAT SIMPLE.
Some of your common complaints... debunked.
1) The MJ market is wildly overvalued.
Jesus... nothing could be further from the truth. I won't get into forward P/E's, revenue growth potential, etc (that's just too easy) - I will simply say this. Less than 4 months ago now, a company with a market cap currently of about 35 billion USD (Constellation brands) decided that an MJ producer from it's neighbour to the north is worth at least 10 billion dollars USD, by buying a 38% stake for 4 billion USD. They bought into a company that, at the time, didn't even have 100 million a year of revenue (CANADIAN DOLLARS). Less than 2 weeks ago, another giant company worth about 100 billion USD (Altria) decided to pay 2.4 billion for 45% of a company that has less than 50 million a year of revenue (CANADIAN DOLLARS). Do you honestly think that these behemoth companies haven't the slightest clue what they are doing? If you merely took forward revenue for TGOD in the next 18 months or so, based on the valuations the VERY SMART AFOREMENTIONED AMERICAN GIANTS just put on two 'start-up' companies, we are talking about a company worth more than 6X IT'S CURRENT MARKET CAP. Yes, TGOD's current value based on these VERY RECENT BUYS by companies much smarter than you are, puts the stock at around 15-20 a share (Canadian). Spare me your 'overvalued' arguments - I have 2 American giants in the... call it, 'recreational fun consumables' industry that know a lot more about how much a company is worth than you do.
2) TGOD is lagging it's competitors.
Nope - they just haven't been bought out yet - because they haven't finished growing their facilities yet. Don't you worry - they will be bought out. As will Aurora, Aphria, Hexo, Canntrust... hell even Supreme will get some cash. The American giants will take out each and every Canadian LP within the next few years. BUT WHY NOT TGOD IF IT'S SO CHEAP RIGHT NOW? Because every shareholder of any company that buys out a business that is still constructing it's facilities will call for the heads of the executives doing the buying. Imagine Diageo paid 3 billion USD for TGOD and had to tell their shareholders the facilities weren't up and running yet? Canopy had minimal revenues, as did Cronos. But they have something that TGOD doesn't - a little head start, and some production. THE DAY TGOD HAS IT'S 2 MAIN FACILITIES UP AND RUNNING AT FULL CAPACITY - HELL, EVEN 1/4TH THE CAPACITY, EXPECT THE BIDS TO COME IN. Luckily, we have growth as of next month. NEXT MONTH. If you ever think you will buy TGOD at a cheaper price than what you see now in December 2018 - you're simply nuts (but this is based on the CRITICAL assumption that there are no delays in construction and production - which the company does NOT anticipate).
3) The market is heading into a recession.
Nah. Again, you're being lied to. There's some market jitters because of the fed being overly aggressive in the US, and some tariff war that likely won't last more than a few more months - but with unemployment as low as it is - both in the US and Canada - any actual 'recession' will be short lived. More importantly - hell MUCH more importantly - MJ can be lumped into the category of recession-proof industries. Why? Because medicinal users will buy their MJ before they buy their Mercedes. Because the recreational buyer will spend 10 buck on a gram of MJ before they do 30 dollars at the movies for a chance to see something they'll stream online a month later, or to buy 6 cents worth of popcorn for 9 bucks. This sector is no different than the alcoholic beverage one - a necessity, even though it seems like a luxury when times get tough.
Listen - when new investors lose money, they simply can't handle it. They sell for steep losses, complain on message boards, and make it seem like the sky is falling. I get it. You worked hard for your money and you can't understand why people can't see what you see. But that's the market, man. It has a funny way of doing the opposite of what you want it to for absolutely no reason sometimes.
My thoughts are simple - stop worrying about these short-term problems. Use them as your opportunity to enter what will most certainly be the biggest growth industry in the world over the next decade. Focus your interest on the companies that have yet to obtain a partial buyout (ACB, TGOD, APHA, HEXO, TRST) - they most certainly will, and you'll be glad you did. Revisit this post in mid-January, and watch how quickly the whole market changes it's tune on the MJ industry. Be smart. Be strong. Be patient.
Good luck to you all.