BLACKROCK Municipal Income TRUST V.BFK.P

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Hexo Corp Returns To Trough For Further US$20 Million Fundin

[Rothchildish]

This will be my last response to you. I feel like MJ investing is like a cult, whatever is said or done, believers try to push a positive spin. That is quite unhealthy. You think people will pay 5$ for a cookie? People will buy Pillsbury and put a few drops of whatever and get the same result for a fraction of the price. There will be an initial hype because people want to try, but it will revert to reality quite fast. I dont see lines at any SQDCs anymore. Theyre stocked and people arent rushing to buy it. Edibles are already available online (illegal) for a fraction of the legal market. Even if they make money on edibles they will mostly partner up with companies who have the infrastructure in place to produce them, reducing the margin. As for the US market... come on, one company over there will stomp the whole canadian sector if they ever allow it. I hope you enjoyed the rise and sold, or enjoyed the fall and shorted. But for now, it will be wild swings untill the company heads to zero.

quinlash wrote: Don't let the past cloud your view of the future.  Alot of people came in high and got caught on the pullback, that's trading.  Sit down and give some hard thought to what you think of HEXO, if it will go to zero or survive, going low and recovering just pushs out the time you will be invested and you haven't lost any money if you haven't hit the sell button below your average.  The flip side is that you never make money when you're up either unless you sell in the black.  Until the win or loss is in your bank account the numbers on the screen mean little (unless you need immediate access to the money).  

Don't forget that there were a hell of a lot of assumptions made last year by these companies, likely the most damaging was the expected rollout of new MJ stores in Canada's largest market, ON.  Our lovely fed gov screwed up selling pot !?  remarkable isn't it .. lol.. anyhow, we have hope now that the new stores will start to open at a decent rate in 2020 along with the rollout of edibles and infused drinks that the BM cannot readily compete with.  I am also optimistic that the margins on a $5 cookie with a drop of CBD oil will be far better than raw product that has to be sold to compete with street prices.  

To your point about the run last year, no, I doubt we will see the same thing happen this year (I hope I am wrong on that) but the average retail investor likely heard or seen all the hype and ups and downs of the sector in the past and are less inclined now to wade into MJ investing.  With that said I think enough will come in as edibles and drinks are rolled out that the bigger players (incl HEXO) will trend upward.  The only thing that will bring back the same hype as before is US legalization.  IMO this is a matter of WHEN and not IF as the golden rule for the next election says that if the dems or reps want to win the Cali vote they will need to appeal to the MJ smokers and investors in that state.  If they can't win Cali they are almost certainly not going to get elected in.  The US election is in Nov, some point prior to that I believe we will start hearing campaign speeches that incl legalization (med at fed level min.).  IMO US legalization will either happen after the election in 2021 or the current fed government will roll it out early in 2020 in an attempt to head off the dems from playing that card in their campaign.

So back to the forward planning, if you conclude that HEXO will survive and that the SP will eventually go back up you need to decide if your best option is to average down, add money to daytrade your position down (putting in money, then pulling the money and leaving profits in as new shares to drive the real dollar avg down) or just sitting and waiting for your avg to hit.  Depending on your current avg and options to play new money and when you need out all need to be worked into a plan.  If you have completely lost faith in the company and sector then you just need to set a target SP for exit and/or timeline to pull the money and take the loss.

As for the rest of your message... no amount of CBD infused shampoo is going to help my mop so I'll have to pass.

Feel free to msg me directly if you want to discuss something off-board.

Q

Rothchildish wrote: I just dont see anymore upside. I remember the time when ANY news was a reason for the stock to go up. Nowadays every pop gets sold. Just look at Tilray.. for no reason it went to 300$. The whole sector was a scam. People say that because it visited X or Y price range, that is it bound to reach it again. Retail investors got burnt severely and institutions are pumping out price targets while remaining on the sidelines.. whos going to pump it this time? Estimates were so ridiculous and the sector failed to deliver. Everyone was supposed to pump oit millions of grams making hundreds of millions in profit. Take all the players and add it all up, whats the total profit for the whole sector..? If you believe this is a winner ive got some MLM huns that have miracle shampoos and essential oils to sell you waiting for your contact info

quinlash wrote:

Rothchild.. first off, sorry, i didn't mean to end off that last reply in a bit of a rant. I do alot of reading on this stock and draw my own conclusions to base my investments on, sometimes I'm right, sometimes I'm wrong.  IMHO the class action suits don't hold water or are so subjective that they will not stand up in court, again, I could be wrong, this is JHMO.  I would not be surprised in the slightest of the new Jan 27 date set out by the firm heading up the suit comes and goes and the case is not put foward due to the firm not having enough plantiffs to proceed with hope of getting compensated.

Regarding the burn rate etc of HEXO.  At first glance the numbers are not stellar, agreed.  I am still re-visting the last QTR report and adding in the latest financing to determine what I think of it all.  I have a few theories, some terrible and some very encouraging. I need to hunt around more for clues to draw my conclusion and decide from there what to do with the investment.

For the BUY HIGH, SELL LOW... yes, we have a lot of that going on with new investors coming in gang-busters and then getting terrified and bailing on a pull-back.  The MJ sector is a rough ride and one that I will not turn my back on.  We can all expect these big runs and pullbacks to continue until institutional buyers move in to suck up some of the float and stablize the SP. I am bullish overall on the sector but there will be winners and there will be losers, which is HEXO is the burning question.

So far SSL has made some good moves to position the company as a winner but the slower than expected opening of new stores in ON has put the LPs in crunch mode.  I am sure their projections included a certain number of store openings per month that are just not happening.  

For the near/mid-term (IMHO) I think we will continue to see new money coming in from retail as more and more news comes out regarding infused drinks and edibles being released with the SP taking a slow and bumpy ride upwards, how far that goes and when is anyone's guess.

GL

Q

 

Rothchildish wrote: Whatever the costs are.. they are too high since Hexo is on a money losing mission. I made a killing with the stock both long and short. People who threw all their money when the stock was 9$+ deserve to lose it all. As if the run would continue forever... buy high, sell low.

 

quinlash wrote:
The Law Society of Ontario's fee schedule for their own work sets the price of a lawyer with 10 years of experience at $300/hr. Business lawyers in Toronto charge around $350-$700/hr. Why is this so?


https://www.nationalmagazine.ca/en-ca/articles/law/access-to-justice/why-legal-advice-is-so-expensive


Whatever numbers you want to use it can be taken for granted that the legal firm heading up these suits will be incurring apx the same cost.  Maybe we can also take it for granted that these firms will want to get PAID for their services?  (maybe)... ok so if they need to make $2.08 million (or is it $3 mil?) to cover their efforts how many retail investors would they need to have in the class action suit with an average loss of??  10k, 100k, 500k ?  what do you think the average retail investor has in this and, if they sold, what kind of loss would they have incurred?  80% of their total?  60% ?  50% ?   How many folks do you think had 500k or more to invest in a pot stock and were stupid enough to go in that heavy and take such a big loss?  Everyone I know who has money has it for one reason and one reason only, they're not that dumb...

The lawyers will likely expect to take a cut of any losses re-cooped in order to get compensated (cover those legal fees) so if you were in and lost a total of 500k and somehow you were awarded the full 500k you might get 50% of that (if you're lucky).  So the 500k you lost is actually only reduced to $250k due to legal fees. 
Oh, Damages you say?  Getting paid extra to get the whole 500K back?  Sure.. that will take more time and more legal fees so the case would have to be pretty bad against HEXO for this to occur, right?  Make Sense? 

Now..  if you read over the last few messages from the legal firms you may have noticed that they extended their cut-off dates.. why?  Maybe there is such a hoard of investors joining this case that they are overrun with the case action and this will be SUPER-HUGE !!! wow, amazing.  With all the chatter on the board from folks saying they are joining the suit that has to be it, right?  Wait a minute... did anyone ever say they were joining this.. hummm... nope… I seen a few people ask about anyone’s experience with these suits and one guy come back to say he joined one once and got a grand total of $40.00 back (FORTY-DOLLARS).
Now that I think on it, the last msg from the firm indicated that YOU could possibly be the lead-plaintiff.. LEAD PLAINTIFF, WOW !! that would be fun right!? 
If you lost a ton of money on this and wanted to sue HEXO would you not be jumping at the chance to be LEAD-PLANTIFF??    but that role seems to still be available… how the heck is that possible…??  Oh, one sec… maybe they extended the deadline and have the lead plaintiff position still out there because….
THEY DO NOT HAVE ENOUGH HIGH DOLLAR PLANTIFFS JOINING THE SUIT TO HAVE ANY HOPE OF GETTING PAID FOR THEIR EFFORTS
Don’t despair, I will agree with you whole-heartedly… people are clueless.

Rothchildish wrote: Theres a difference between their salary and the fee they charge... people are so clueless. Same goes for accountants etc. They have to pay the employees, office space, etc etc. A law intern fee is 150/hr at a good firm. That intern probably gets paid 25-30/hr

quinlash wrote: Corp Lawyer fees in Canada

https://www.payscale.com/research/CA/Job=Corporate_Lawyer/Salary

quinlash wrote:

40 hr work wk x 52 weeks (no vacations) = 2080hr x $1000/hr = $2.08mil. 

Thats one busy overpriced lawyer IMO

short the stock or sell if you think the lawsuits are going to impact the company

GL

Q
 

VeritasVern wrote: At $1000/hr that would be $3 million for a year of work. These things can drag on for months and if not a year or more especially if their are appeals.