Discussion - How will Session's impact TNY?So a bit of a long post but I'd really enjoy to have this discussion with you all.
I did a fair amount of researching last night trying to get a better sense of why TNY has gotten beat down so badly after all the good news it put out. In my opinion.. It came down to Session's/Spicer's comments on MJ. Seemed that was the turning point and the MJ market overall took a hit. While the CDN side rebounded, the US side continues to hang in suspense for further updates.
While the situation is unfortunate, I didn't foresee the results impacting TNY's operations. I considered both sides:
- Session's crusade against Rec MJ proceeds. Hemplify is a hemp based consumer health product. I feel the chance of them targeting hemp would be slim as their focus is more on the rec market of MJ and the "drugs". Popular opinion is also in favour of rec MJ so even if law enforcement cracks down, the consumer base of Americans are in favour of it so I don't see a depletion of consumers for Hemplify. Tinley 27 on the other hand is targeting only Medicinal patients at this time. Therefore, I don't see it being impacted either. We may see disappointed investors whom had banked on a Rec market for Tinley but as far as current business structure, I don't see any change in more stringent enforcement of Federal MJ laws impacting TNY. Unfortunately, I feel the only impact with be from investor perception.
- Session's crusade against MJ does NOT proceed. I would expect to see an immediate boost in the US MJ stocks as investor risk is reduced and confidence restored. Many have assumed that US $$ is flowing North to the CDN market in recent weeks due to uncertaintity in the US markets. I would expect this $$ to return South as investors look to capitalize on a much larger prospective market.
I think a big catalyst will be when we actually hear comments on the topic from Trump's own mouth. So far I have not found any post-inauguration comments. In the past, he has stated he is pro-medicinal MJ and also pro-state when it comes to Rec. So it would appear that Sessions views conflict with Trump. I suppose the question is who's views will win... The President or the AG?
All in all, while the current situation is unfortunate I feel that TNY is in a relatively safe position since they are not a "pure" MJ play nor are they targeting the US Rec MJ market. I seriously considered dumping and eating the loss due to the current trend but instead took advantage of adding another 10k shares this morning.. now 100K and holding strong. For anyone who has level 2... you probably see that this could go either way very quickly... in fact support has grown and It has moved up already since I started this post. Warren Buffest says to be greedy when other are fearful and fearful when others are greedy. I feel that is the perfect example of TNY atm. He also says that the stock market is a mechanism of transferring wealth from the impatient to the patient. Another perfect example of TNY atm. The insider buy @ 0.26 just last week was also very re-assuring. And to be honest, Andrew Stodart is one of my favourite on the TNY mgmt team.
I know many of us are Bullish on this board but I'd love to hear your opinion and critiques. Please no simple pump spams responses, provide substance/insight/news with comments. If you have any updates on Session's current situation I would also appreciate them. I currenty peg it at a 30% chance he will be removed for lying under oath during his swearing in.
GLTA