RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Cannabis at startup $0.115 it's my choice To clarify, yes the sales license now allows sales and revenues to begin, but the predicted revenues were projected long before the actual license arrives, hence why there might be, and usually is no massive pop on license news
Updownsideways wrote: Been in this sector for a few years now, and one thing is for sure, it's almost always sell the news if it's anticipated news, and if it's surprise news, usually you get about 3 green days before selling pressure trends down. Remember the market isn't dumb, all publicly known events and upcoming future catalysts get priced in when the info gets disseminated (not necessarily by a formal news release). Once the news gets officials released, those that bought early will unload onto those buying the news, until eventually (usually 3 days max) sellers trend it down.
The type of news you really want, is the type that gives a surprise upside boost to revenues or bottom lines. The type of news that implies going forward, an increase to operating income. That news will sustain higher share prices.
Pre license plays already have market caps to reflect predicted revenue once licensed. When the license news comes out, it doesn't immediately change the predicted revenues to the upside, it only confirms that we got the license so now hopefully we can justify current speculated market cap with future revenues. To savvy investors, that means sell the news and take your profits elsewhere because that was the biggest catalyst for a while. All the license news does is say to investors "now we wait nervously to see if we can execute to justify our already inflated market cap that predicted revenues based on license approval and grow space/clients/etc". In other words, sit and wait.
Zhantao wrote: Mrg8324 wrote: Zhantao wrote: Just to give a better perspective, let's take BELEAVE (BE) for example. They are an LP. Here's what happened:
On May 19th, they announced their are now licensed. Share price DROPPED and hasn't gone back up to that level since.
June 28th, they begin cultivation. Share price drops further!
Am I saying the same thing will happen to MMJ? not necessarily, but maybe. How many times have I seen on stock boards, people saying "When xxx news comes out this will go up", but in reality many times people sell off their shares. I have no idea WHY but that's just how the market works sometimes.
Just being realistic here.
BTW, Beleave has a much, much, much, much lower float (around 29 million shares I think).
Why do you think their share price dropped AFTER becoming a licensed producer? I have no idea but it happens
Zhantao wrote: JordanDee wrote: Simple answer... Things don't happen over night. It's incredible that they have two late stage apps now, but the fact remains that they are still in the process of getting licensed. Have you seen what happens to a stock when they get their LP? KABOOM. Those who believe that mmj will be licensed, and are patient enough to hang on to their shares until it happens, will be greatly rewarded.
yeah but there are at least a couple of other licensed producers that aren't trading at a high level given their status.
What is your definition of kaboom? If you're talking about a double from here, then I don't think that's very strong at 11 cents
lmao.. BE was at $2 plus that time. How can you even compare a stock worth $2 with a stock which is at 11 cents? How far can MMJ drop from 11 cents LMAO !!!!
Bud if you have no interest here then why waste your time??
I think you're misunderstanding my position here. I'm not saying I have no interest. I have shares, but all I'm saying is sometimes when a company SHOULD be trading higher (due to good news or whatever else), it doesn't always happen that way. I'm not comparing BE and MMJ in the SP sense (ie, $2 vs 11 cents). Instead, my comparison was based on two companies that are both in the marijuana industry, both pursuing LP status, etc. But even with BE being a $2 stock at the time, now it's $1 something AFTER LP status and AFTER cultivation. Exactly, you just basically proved my point. Why would hte market react that way?
So when MMJ reaches a certain point, it's probably a good idea to sell and buy back in cheaper. because it can't be assumed it will go up every time there's good news. It might go up on LP status, then when the next news release after that comes out (Even fi it's a good one) the SP might actually go down again. That's why the market is weird, because on BAD news there will be a sell off, but on GOOD news, there's a 50/50 chance of a sell off. it's weird..