Newstrike Brands Ltd NWKRF

RE:SECTOR HYPE IS OVER

[blobboy]

goldman777 wrote: And now the companies settle in with fundamentals. HIP still has promise but the head winds are significant. I`ve been out of the sector for a while and have done just alright after rotating into the energies again. I think it is safe to say that no one knows where this is going, that being said it is approaching my buy target of 35 cents. A few more days of capitulation and then a stink bid might be warranted but I stop and ask myself do i even want back in. Some others I follow are not doing any better - HVT, GENE to name a few, and I really wonder just what the catalyst will be to a higher s/p - everybody and their uncle knows production is ramping up with increased capacity....but so is every other company, every body knows that Ontario will enter the fray with brick and mortar capacity...every body knows every thing that is already baked into the pie. Will the Q4 numbers be so stellar that the s/p regains it`s former glory. So today we saw a nice gain for the DOW and as such this sector should have seen a lift but it did not, the 3 big guns lost 7% collectively...a worrisome sign if this sector decouples from big positive movements on the major indices...so I need to ask, What is the catalyst for any of these companies to keep them from sliding into the abyss.

Excellent observation on the correlation between positive movements of the DOW driving this sector, again today we see the DOW edging into positive territory and yet the majority of the pot stocks lag and are firmly entrenched in the red. If I was holding large positions in any of these companies I would be very concerned. Disclosure : I have been out of this sector since just after the greatly over hyped Oct 19 recreational launch. A stellar job by the boiler room boys on the sector pump.....pump the buy on the rumor and then the massive selling on the news. Very challenging months ahead and now we will see who survives and who fails. We all know Q4 financials will be the next newsworthy catalyst for this sector - one way or the other. I do not expect anything positive that will propel these stocks to revisit anything even close to their former glory. Tough sledding indeed for the bag holders - patience, what ever.....your looking at years.