Ghostinthedark wrote: The event has passed. For some, the stock gaped up. After the first 1/2 hour, the stocks returned to their ranges.
The passing of the banking legislation had no impact on the Canadian pot secort. It remains flat. More to the point, because of so much volatility---mostly due to daytraders and shorters---the pot stocks are hugely volatile, and not worth buying and holding, unless you are willing to stomach the large swings in share price. For instance, Weed rose to over $38 this month, and then proceeded to tank to $31 or so in the past 5 trading sessons. Basically, the stock dropped approximately $7 in a few days. Who would want to own a stock that is so volatile?
Compared to last March, all pot stocks---WEED, OGI, APH, ACB, FIRE, TGOD, ACB, HEXO, TLRY----are trading at share prices not seen since the summer of 2018 or earlier. And TRUST has tanked from over $15.00 to $1.50 since last summer. No rational person, no informed investor---one who understands fundamentals, charts, and techical analsis--- would be holding a stock from the high to this low, especially after the debacle in July.
As well, earnings for all pot stocks have been sluggish, due to a number of reasons--including lack of supply and lack of retail stores in Toronto and other large cities.
Due to the countinous losses by these big name pot stocks, retailers are experiencing "fear and despair. "Many have lost well over 50%.
So FOMO--the feare of missing out has evaporated. In the past, bullish news would fuel the share prices of stocks to new highs. Uptrends, as indicated by the candles stick charts, would move higher on the daily, weekly, and monthly time frames.
But then, after poor earnings, the stocks began to tank in late March, because of earnings failied to meet analysts expectations, and because each pot stock had a price to sales ratio that was out of this world---miles higher than any blue chip stock, such as FACEBOOK or Amazon. I -believe Cannopy was trading as high as 60 Price/salesm Facebook and others are trading at 2 or so. In other words, these pot stocks were hugely overvalued.
Then we had the scandal of TRST---the CEO PETER ACETO and his cronies---essentially lying and cheating---growing pot in unathorized locations, buying pot seeds on the black market---in an effort to boost production and sales and revenue, caused many to tjhink that pot was a shaddy adventure. Eventually, ACETO's lying and cheating was found out by Health Canada. ACETO and many others in TRST were fired for their unethical, unethical, and down right incompotent behavior. (I hope ACETO never gets another job. His actions and decisions are despicable--he is not worth of becoming a CEO anywhere. Time will tell.)
The TRST fiaso addded to the doubts of many retailers. Then, in August, ACB and WEED did not meet earnings expectations, and tanked,followed by a tanking of the rest of pot stocks.
What is going to happen in the future? TRST will likely not recover. If the license remains suspended, there will be NO sales and revenues for many months---perhaps a year. Even if the suspension is lifted, pot has not been sold since early July, and it is still NOT being sold. So will be no earenings for many moths. Earnings/revenue drive prices, contribute to bullish expectations of insttutional investors and retail investors. There is no reason to buy and hold TRST. In fact, you willl make money by taking your losses and buying another pot stock while they are at the bottom.The only people buying and holding are retailers who are wishful thinkers, magical thinkers---investors who have NOT done their due diligence, essentially buying TRST blind or based on a feeling---magical thinking.
As for WEED, HEXO, APHA.....I expect the share prices to rise significantly in the next three to six months. Why? Edibles and pot-laced drinks will be legal and sold, which will significantly boost revenue for all these stocks. Revenue drives price up or down. FOMO will return, Social media an the business publications will write wonderful articles. The key metrics to watch are earnings, revenue, debt to equity, price to sales, earnings per share, profits..And you must pay attention to analysts targe price, which fluctuate short-term, depending on the earnings for the past quarter.
Once you see an uptrend on the monthly candlestick patterns for each stock, you know the bottom is in, and there is the beginniing of an uptrend. Look at the candlestick patterns for TRST---you see a fallilng knife:
https://www.investing.com/equities/canntrust-advanced-chart Not until you see the beginning of an uptrend on the monthly charts should you buy TRST. This might never happen. The same reality goes for all other POT stocks. IF you are buy and holding long--a year to 5 years, you will likely make a killing in the stock market.
As it stands now, pot companies are speculative investments. Hoever, for those who day trade or are shorting the stock, pot is a gold mine.
If you are a bagholder, like I am for some stocks, you must wait it out. I truelyl believe that POT will be hughe.
Unfortunately, investor sentiment remains "fear and panic," and huge reluctance to buy any pot stocks.
That is why the bullish news of the banking legislation had NO impact on moving the share price of pot stocks higher today