RE:What's a good entry point for a new investor?gigantor wrote: Thoughts?
Summer can be a volatile time and the stock is technically broken. Two years ago there was a similar bubble in health care stocks. Names like Phm, Hlth, Cxr etc were being bid up like crazy. Similar to the MJ sector the collapse began in May as the fundamentals weren't there to support the valuations although the future looked promising. Acquisitions were being made like crazy and everyone and there dogs were buying the stocks. As people took risk off the table the stocks fell 80-90%. Names like Phm are just starting to generate cash now and are looking like they could have big breakouts, but if you bought at over $2 the stock is currently trying to break out from 30 cents, which it looks like it will very soon.
I think we could see the same type of panic selling in Weed as we seen with the health care bubble. The hot money seems to have left the sector for now and there is an aweful lot of air in the valuation which could deflate rather quickly.