Stock jockeys, Red Bull and beer nonsense.Welcome to the world of rabid speculation that can take a good thing like ACB and turn it into a race track for stock jockeys, fast money momentum players and people that don't do research.
The first time I joined this board was about a week ago and this stock has risen +30% with no material change to the business. You can peruse this web page and confirm for yourself that little is new https://www.newcannabisventures.com/tag/germany/ Check the dates on the releases and they go back months.
Yes, the alcohol boys threw gas on the fire with their TSX: WEED investment which has been great for speculators who clearly have not done their homework.
Back on March 13, 2017 Forbes ran an article based on a Cannabiz Consumer Group (C2G) report that predicted the beer industry could lose more than $2 billion in retail sales due to legal marijuana. The company reported that 27% of beer drinkers said they have already substituted cannabis for beer or would make that switch if marijuana was legal in their state.
However... after more digging... C2G also wrote that the substitution would be short-lived since the novelty of legalized marijuana will wear off.
My other research shows that in Colorado, 2016 taxes received by the state on alcohol sales actually increased between January and November. Beer tax receipts climbed 4.5%, spirits rose 4.0% and wine increased 3.3%.
So... declining beer sales due to cannabis... nonsense, if you follow a market mature in legalized cannabis.
And here's more nonsense...
As far back as 2011 there have been marijuana sodas. Nobody gave a hoot then... so why should they now, six years later?
Here's great little clip from ABC done back then: https://abcnews.go.com/Business/business-marijuana-soda/story?id=12786089
My overall read is this... the Red Bull energy drink phenomena is alive and well in the minds of many a drink producer who sat on the sidelines while RB created a $50B + market.
You have in the market Modern Martini RX with 50-100 mg of THC per bottle, Canna Cosmo, Laced Lemonade, and Cannabis company Stratos with a tablet called Ascend that the consumer can drop into a drink. Seattle-based Prohibition Gold offers cannabis product Potshotz.
And a bunch more.
None of these are the next Red Bull and a gold mine for cannabis sales to this category is not in the cards as I see them being dealt.
What to do about the parabolic rise in ACB price over all this nonsense? Make your own call. For me... it is too much... too soon... running on fumes. Long term, it should be fine and a correction here would be healthy as we look very overbought.