RE:Watch Canopy - the causeTo blame this all on Canopy is an absolute joke. It's the whole entire market not one stock. To say we're trading on real numbers right now is also laughable. Beware of anyone making price predictions. If Canopy sinks too low I have no doubt constellation will simply take them out. Right now I would not be surprised to see a hostile takeover or two in this sector. Aph and others are looking pretty attractive to anybody looking to get into the sector.
QuickThinker wrote: The reason why all the stocks in this sector have dropped is because Canopy - #1 was overvalued. We all knew it. Now it is correcting. Based on Canopy's expected revenue for the year, and the amount of shares out, we should be expecting a proper evaluation in the 30s. Canopy has come down and broken each threshold one by one. $48/49 is the last resistance before reaching the $40 one. After that, it is $37, and then $34. I think it will break the $48, $40, and eventually bounce between $34 and $37. The market has memories, we know where these points of resistance are.
We have to accept that the number 1 company is going to be compared to existing stocks with real revenue data. We are no longer in speculation land, we are in real trading territory based on real numbers. Unfortunately, Canopy was one of the most over-valued stocks, and they will drag down everyone else with them in this sector, whether the other stocks are over-valued or not. Eventually, the stocks will stabilize to where they should be, so be prepared.
I Aphria high, and the last week sold Canopy after realizing this is what is coming. I am waiting on the sidelines now for my target price to buy back in and then going long.