lou64 wrote: on the advice of people like Cramer while making a small fortune off their backs
any bad new and I mean ANY will result in a CRASH !!!
only a fool buys into a hyped market without sound hard core numbers on profits
These Millennials WILL BE SCHOOLED .... Pumped up share prices without pure numbers to back sales
look what Ontario just did today .... Canopy HAD 1 / 26 of the Ontario maybe sales but now has 1 / 32 as of today ... Can't trust Ford !!!!!!!!
As Mr. Catherwood shows, there were numerous warnings about the speculative craze of the period, from The Economist and other sources, yet hordes of investors managed to convince themselves to keep buying.
The tech bubble that ended in 2000 and the pre-crisis U.S. housing craze are the two most recent examples of speculative manias. In each case, a defensible investment thesis – that technology will eventually dominate the economy and American housing prices could only move in one direction – was extrapolated to a form of ridiculousness where no price was too much to pay for related investments.
Amazon.com, currently trading at 200 times trailing earnings, is considered one of the poster children for a wildly expensive equity market. But Amazon trades with a price to sales ratio of 4.6 times when Canopy Growth Corp. trades at 139.2 times trailing 12-month revenue.
This is, of course, an unfair comparison in that Amazon has been in business for over 20 years while marijuana is not yet broadly legal in Canada, and there will be a sharp surge in sales when business gets going.
Canopy’s huge price-to-sales ratio, however, provides an indication of the extraordinary growth that is already reflected in the stock price. The company could exceed these high profit expectations – it’s hard to know in an industry that’s brand new in a legal and financial sense – but any disappointments will likely be treated harshly by markets. Investors should be very careful about how much they are willing to pay in terms of valuations to go along for the ride.