RE:A risk I decided to takeThe simplest and easiest way for new investors to gauge risk is to look at Beta, it's a relative measure of a stock's volatility compared to the market (usually an index). For example: a beta of 1 means when the market drops by 1% the stock will drop by 1% (this is measured historically so no guarantee of future accuracy). A beta of 2 means if the market drops by 1% the stock will drop by 2%. Aphria has a beta of ~0.9, which I believe is the lowest in the MJ sector.
Foxx248 wrote: Since I recently bought shares in APH and SL I've been reading some of the posts here. The way I see it, everyone makes their own decisions about what to invest in or not based on the level of risk they can tolerate. I bought shares in these companies even though I view this particular investment as risky ... I don't know how much risk. But I also view it as a potential opportunity to achieve some decent growth if the legislation is introduced and goes through. I wouldn't buy these stocks unless I was planning to hold them for a decent length of time to see what happens. I'm a relatively new investor, but I"m trying not to let the daily ups and down in stock price get to me. I decided what amount of $ I could risk on this type of stock and still sleep at night. Of course, I hope that it works out and one day I can say that it was a good decision to take a chance on this. Even if the share price dropped to half tomorrow, I wouldn't sell ... I'm going to wait this out and see what happens. I read varying opinions here about whether buying these stock is a good idea or not ...
Last week I told a friend that I bought these stocks and he was very negative about my decision and sent me his analysis of the situation, which was all very negative. Then he changed his tune and this week bought a few shares of APH. Interesting.