RE:THE FORCES IN PLAY Another good post, I do want to question yoru comment yesterday regarding the new CEO news being - meh or whatever comment you made. Why woudl you make such a comment? I beg to differ and expect a very nice bounce.
Mayham
Starsearcher80 wrote: I consider the news today to be one of the most substantial developments in Canopy's history.
This development, in combination with Canada 2.0 domination is going to vastly improve Canopy's top and bottom line. So the question is, if this is "so great", why is the price not racing higher? I think there are several forces in play, NONE of which will stop the innevitable move upwards.
1) Sentiment:
Sentiment is a funny thing. It's very powerful, but ALWAYS lags. With the mj bubble was at its biggest and best, sentiment couldn't be stronger or more positive. But what a mistake. And now, when everyone is still licking their wounds from the bubble bursting, sentiment couldn't be worse. Again, this current negative sentiment will prove to be a huge mistake. The astute investor looks through and beyond sentiment to see the opportunity. The astute investor wins. Sentiment investors get eaten alive.
There is still some negative sentiment overhang. Again, sentiment is a lagging force. Not to worry. Sentiment will change. Greed and opportunity always sees to that.
2) Broader Market:
The Dow is off 260 yesterday and another 400 today? And WEED is rising? Gotta love that! It shows the internal strength of the stock. While this kind of drop today does bring the headlines and shifts focus, this is only very temporary.
3) Understanding:
This is linked into sentiment, whereby people who are currently sour on the stock or sector, aren't taking the time to see and understand the changes for what they really are, especially in the sake of Canopy. These are people, currently/collectively "the masses", who's first sentiment change will come on an upcoming quarterly, where Canopy's numbers show vast improvement. Then they'll start looking, and start chasing. It's silly I think, but not everybody plays close to the market to keep up to date. Oh well, their loss.
4) Institutional:
This is an important sector, and not to be ignored. Collectively, they have the power to run the stock. Insitutions typically don't care to the same degree as you or I, as any one holding represents only a tiny part of the overall holdings. There have been many times where I've seen institutions just piss all over a stock that "did them wrong", or a stock that they didn't want showing on their books. They blow it out. Did that happen in the midst of the mj bubble? Absolutely. But those same institutions are at least smart enough now to restart their buying, especially in light of the recent news on 31 States and Canopy 2.0 offerings. They don't move fast, but they do move strongly. I have no doubt that we're going to see a re-inflation of Institutional interest and reccomendations. Bank of America the other week was an excellent example.
The market is made of of SO many forces in play, which all percolate into a given trade in realtime. It would be a naive mistake to look at any singular news event, and judge the effect on price as somehow happening independent from all other forces. It doesn't work that way. What people need to do is see any given news in the bigger context, and know that innevitably it's going to move the market price.
I have COMPLETE CONFIDENCE that the share price of WEED is going to be rising substantially in ALL timeframes, from days to weeks to months to years. Truly, there is a reason to buy for everyone, no matter what your timeframe is. ALL of the above factors are forces that are going to come in to play, and positively affect WEED's share price. I don't mind waiting at all, and it won't be a long wait imho. There remains VERY easy money to be made, and personally I wouldn't be surprised at all to see the stock over $30 before Christmas.