Why Pot 2.0 is Already Included in Current PriceWith only 10 days to Pot 2.0, I think that it's already baked in to the current price. The stock market tends to be forward thinking and tries to anticiapte what's going to happen months down the road.
Let's use Oct. 17, 2018 being the legalization date. On Oct. 15, the stock hit it's all time intra day high of almost $77 and closed at $61.30. People on this board were projecting $100, $200, etc. within a year after legalization. There was so much hype leading up to legalization that every pot stock was going up and up. These were very speculative and risky growth stocks, flying high on potential of billions to be made. Once legalization came, all the hype was gone and so was the easy money.
One week later on Oct. 22nd, the stock closed at almost $51. This stock fell until the end of December. It did find its way back up until the end of April, 2019 when it closed at $66 and hit an intra day high of $71. We all know what has happenned since then.
This time around, the news in the pot sector has all been bad with issues like CannTrust, terrible earnings numbers, vaping issues, etc. If Health Canada puts out any kind of restrictions on vaping as part of its Pot 2.0 rules on Oct. 17, then Canopy will be hit hard because of its development and marketing of vaping products. The other thing may be the Conservatives winning the election. They may slow down the roll out of Pot 2.0 because the regulations come out on Oct. 17, but not effective until Dec. 17 which gives them time to change things.
I'm still waiting for mid $20's to start buying back carefully my positions that I sold starting around May 1 at around $70 and down to the low $30's a few weeks back. I still hold a 25% position and believe in this stock long term, but not so much short term. The days of easy money are gone as the market now wants to see revenue not hype.