RE:The biggest cannabis ETF will potentially add PCLO shortly
Nice try on the potential index add. I must correct you on a few things. Firstly this is a rebalance and as such some names first have to come out OR anything above 10% has to be reduced. In the previous HMMJ case there were FOUR stocks well above 10% and several stocks which were coming out which created a host of names which went in. PCLO was added but the overall buying was less than half of what was anticiapted even with the major reblance that needed to be done.
In the case of the MJ its a totally different story. Its predicted only one small name will come out. There were also no mergers or acquistions in the names of the makeup of the current index so no other major rebalce there. Finally there are no stocks above 10%. So in the end the REBALNCE is very minor at best. You are not just allowed to add names at random. Solactive will however provide a list of almost 30 stocks that qualify . I'm sure PCLO will be one of them but there are several other names that dwarf PCLO in size so PLCO is unlikely to be included. Its control block also reduces its size by almost half. y prediction is there is no conceivable way it gets included and even if it did the size would be very small due to the nature of the rebalance.
I might also mention that PCLO insider and seed investor lock-up agreements expire in about two weeks or 12 trading days from now. The amount of selling this will generate will absolutely dwarf any buying any index would ever create. As an example when Tilray's lock up expired the stock dropped in the three weeks leading up to that date by almost 30% ( from $115 to $78). Its now at $52. I expect PCLO will drop to about $2 in the coming months . It only owns a $15 MM canopy covered farm and nothing else. Shorts will make large in the coming weeks.
BTW...I'm still waiting for that Seeking Alpha hit peice. I'm betting they are dotting the i's and crossing the t's on it but its timing would be perfect right about now ahead of the insider lock-up expiring.