RE:Well guys for what it's worth here's what I think... Re: All Cash Tax loss season is also here. So I still expect downward pressure into the end of the year.
I am keeping a close eye on the trade war, global geo-political and economic concerns, various hot spots around the world; wars and so on.
I am cutting my underperformers right now for tax loss harvesting. (Non- mj stocks and holdings - when I say I am diversified, I mean not all pot stocks. ha)
Some countries are in recession or damn near close to it. North America is doing well, but it can get dragged down the black hole if world wide sentiment and economy goes full negative.
So protecting myself by cashing up and waiting to grab cheap shares of any good company that might gets a hit later on. (Dip buying a few thousand shares of Canopy in the last little while - will stand pat and see where it goes before grabbing some more cheaper shares.)
The SAFE banking act would be great for a good kick to the sectror in the meantime. One of the main reasons I am staying out of the US market for now.
If that passes I will load up on Acreage and actually consider getting back into the US MSO space again.
re: Vaping issues. Tough break right now - but one that I am actually glad has happened. (No not the deaths of vapers that is a horrible thing to happen to anyone.)
I am specifically highlighting the illegal vapes and garbage that people are consuming in the US unregulated market. This needed to be dealt with. What I find appaling is that the US health authorities like the FDA allowed these unregulated and untested poisons to be sold and injested in the first place.
They are lumping E-cigarttes in with THC / dry bud vapes and confusing the issue. All vapes bad is the current mantra.
Cynically I can say: the public has a short memory.
They will shrug their shoulders and still consume what they want. Addictive sh!t like cigarettes in what ever format - liquid or regular will be consumed and so will THC / CBD and its many derivatives. Legal or otherwise.
On another note - alternatives like beverages and edibles can't come soon enough.
It's coming up on 1 yr legal in Canada - damn time flies fast.
doobiebaby wrote: 1. If you still want to play weed stocks then get your money into the one's with the strongest balance sheets. Canopy obviously has the strongest balance sheet by a country mile as of right now. The US tickers with the strongest balance sheets I think are Charlotte's WEB and Green Thumb Industries. The shorters go after the companies with weak cash positions and make a bad situation worse. So in the current climate it is less about hopes and dreams and expensive jaw dropping M&A deals and more about operating efficiently and getthing through this credit crunch.
2. Unfortunately Canada is out of short-term catalysts right now. I moved my money out of Canadian LPS a year and a half ago, but I still got dragged down hard holding US MSOs since May. So far I have not seen a divergence in how the Canadian LPs and the US MSOs trade. They all seem to go up together and down together regardless of the markets they operate in.
3. The biggest catalyst I personally perceive right now is the US vaping crisis. This vaping crisis changes the conversation around legalization in the US I think. Up until the vaping crisis the catalysts for legalization where about social justice issues and the opioid epidemic. The vaping crisis has changed this conversation to include the need to deschedule and regulate the industry ASAP to curb the abuses of the Black Market operators and their VAPE PENS with POISONS FROM CHINA. At some point some US politician is going to start beating this drum really loudly one would think.
4. Tough days guys. The Canadian industry is not healthy with such limited distribution and no branding opportunities. The strong will survive and I have no doubt that Canopy is going to come out of this the strongest given how much money they have and the expertise and backing of a Fortune 500 company.
5. Is it better to be in cash right now and wait this out? That would certainly be a prudent strategy. Since i am playing US MSOs I feel like I've paid for an expensive ticket to see the SAFE BANKING ACT through the Senate and President. I hope Mitch McConnell's cannabis meetings last week went well and that the Senate is ready to move this legislation forward. As usual we shall see how this all plays out.