For New and Fairly New Stock People ...like me. Post mostly for those fairly new to stock market trading...to be here and be able to participate in the legalization of marijuana is truly a blessing. Daytraders pro and amateur are in their glory. While I have had time to do a great deal of daytime activity in Nov/Dec; that won't be the case in Jan and beyond, so I look for companies I won't have to monitor so closely. I got started with a bank online web broker for myself Oct 4th I believe. Most of my money is tied up in real estate but I did have about 120K to utilize. At first I did all of the diversification stuff all the experts recommend, but after studying the cannabis situation extensively and having firsthand experience with the potential market size thru work experience, I decided to stick with some diversification - all within the cannabis sector! Abandoned the traditional thoughts and advice (tech, financial, energy, retail) for now. Where some people were capable/smart/lucky enough to get in 12 months or more ago and you (like myself) haven't, don't cry over spilled milk - the following 6 months and beyond are going to show incredible growth. I believe what you have to do moving forward is pay particular attention to the companies you choose, with an emphasis on the management team in place. Do some reading - lots of reading - use boards but do not rely on them without confirming them. There are still going to be ground floor opportunites with great companies, and there are great companies out there that are still going to have major growth in share price with sustainable success afterwards. Do your own homework; here are a few opinions I'll share from mine.
IF you can keep an eye for anticipated release of locked up shares for companies, this could help you smartly work selling and buying. If not, all the more important to pick the best companies. With my limited time and experience, I prefer to pick companies I plan on holding at least until the summer. Here are the companies I've chosen. The company I believe is the best guarantee for longterm success with the least concerns, meaning you could buy it and forget about it, is Canopy. The solid company I believe that has the biggest short term (next couple of months) potential along with longterm potential is Aurora Cannabis. I believe this stock (my biggest investment) will remain fluttering around 7 until the takeover plays out, which could last to March. I believe it will be successful, and this stock will then very rapidly move towards 14 dollars prior to summer. That's a 7 dollar stock doubling in a few months; that is significant money. If unsuccessful, I believe there will be a great buy opportunity around 5.95 - 6.25, with a very quick bounce back to 7 and then steady progress towards 10-11 dollars by the summer. I also believe that if the takeover drags on, this company will surprise many with more smart strategic acquisitons/partnerships/mergers, simply because they have done so many great, smart deals. Go to their website and click on the "investors" button top left, scroll down to press releases, for a start. That is why I like them more than Aphria, who I place 3rd (just sold 2k shares; may buy again if a dip). A stock which I think will take the next step and be a solid player by next fall is Emerald. Check out their management team and decide for yourself. Consider the governmental ties and for longer term the obvious connections to California, nevermind their capacity capabilities. Their stock just dropped due to the release of shares coupled, I believe, with typical frantic daytrading as folks don't want to miss rising (or shooting) stars. I bougt at 4, sold some at 5, and have bought more again at 4.25. The company just looks too good. Again, some people get impatient watching companies around them shooting up. Like Aurora, I think Emerald will be a great investment and will start to separate from the growing pack by the summer and for them even more by the fall.
Doing your homework will pay off; and I also think diversifying for some (like me) within the sector will pay off. One reason I like Aurora is their propensity to diversify - getting into the pick and shovel business with acquisitions like Larssen and Radient, and now the investment in Micron Waste. I wanted to diversify with the best looking companies I could find focused not on growing weed (ie Canopy, Aurora, Aphria, Emerald, etc etc), but in offshoots like vaporizers, oils and edibles/consumables. As a result I picked Namaste Technologies (vapes, oils etc) and Phidiva. I bought Namaste at 93 cents; Phidiva just listed on the tsx on Tuesday I think. I bought in at 73 cents. Both have skyrocketed. I have to study up more on longterm potential for Namaste, but I think it still has legs based on its quality products, ecommerce setup and international exposure. I think they actually have a business deal with Aurora.
Phivida closed around 1.30 today. Look at the management team of Phidiva and read between the lines. These folks are going to succeed; their products - hemp oil infused - have huge potential in a halth conscious society (hello California) and can legally be sold because it is nonTHC. Do your own homework, but I think this also has plenty of running room next. Compare them, for example, to Neptune Technologies, which is switching from primarily fish (krill) oils to CBD oils. While CBD oils and hemp oil have differernces - CBD being more medicinal - both have recognized health benefits. Neptune has operated with net losses forever; their shares currently sit at 2.59. They have a market cap of about 203 million. When the switch to cbd oil was announced, their stock shot up. They are still rated a buy (I have none). Phivida, just listing, has a market cap if I remember correctly of about 58 million. Look at their website and management team, their products (including some developed and ready to roll out) and compare to Neptune. I may be overly optimistic, but I think their products will be very successful and see no reason why their shares won't be approaching 2 dollars by the spring if Neptune is closer to 3. I am also interested by 2 of their management team's history - one formerly with Labatt's, one with Red Bull. Energy drinks and THC infused beverages COULD be something this company looks at in the future whern the time is right. Pure speculation of course. But if their initial product line is successful, I think THC infused beverages - promoting a healthier (low or zero calorie) recreational party drink - will be as big or bigger than smokling cannabis down the road. Like Emerald right now (and for a few days more possibly), I think both of these will have to have a price dip soon, and it may be a good opportunity to get onboard with what appear to be 2 of the better built companies out there in the sector. Time will tell. Good luck to all and Merry Christmas.