Marijuana and other nutty stock

[Weedy1]

A post earlier today got me thinking. Has anyone bought into the marijuana stock frenzy or any other crazy overvalued stocks? There seems to be a lot of speculative trading and interesting things happening in the market nowadays. I got a real kick out of Marc Cohodes on BNN yesterday concerning the real estate situation in Toronto.

http://www.bnn.ca/video/cohodes-stil...capital~981334

How big of a bubble can be blown? When do you leave the party and take your party favors?

[pikergolf]

I bought Canopy at 4 sold at 13.65. Trading at around 10.70 now, still way over priced.

[From The Hip]

I bought into Tweed for $2 a share....it got merged into what is now Canopy Growth Corp....I have 400 shares....am still in a holding pattern.I see a big rise when our idiot prime minister's government tables the legaliaztion agenda within 2 weeks.

FTH

[Weedy1]

I bought Shopify at $53, sold out on a stop at $87.50 only to see it jump to $96 a couple of days later and presently riding at $97.
This is for a stock with a P/E Ratio of -174.46

I still own Aurora though so my value investing doesn't make me crazy.
Hey if you're going to invest in pot it should be Alberta grown at least!

[Fur]

Valuation is not an easy thing. Speculation is everything.

Look at Tesla. Cant remember off the top of my head but they are not making profit and are valued at what 20 billion?

I think we do not have a valuation or a comparison for this market. People in the stock market always like to think they can predict the market, but all it is is a guess. Oil crash? Housing crash?

Dot com bubble not all crashed, amazon, google, ebay etc all came from there. Weed stocks will have winners and losers.

The reason why these stocks are not higher is because bankers have not been unleashed onto them yet. When they are legal I think values will skyrocket due to actual bank investment than correct/tumble and 2-5 players will be left.

[Weedy1]

Originally Posted by From The Hip

I bought into Tweed for $2 a share....it got merged into what is now Canopy Growth Corp....I have 400 shares....am still in a holding pattern.I see a big rise when our idiot prime minister's government tables the legalization agenda within 2 weeks.

FTH

I'm not convinced of a huge rise considering the announcement Sunday/Monday of this week only resulted in a 10% move. The market may already be saturated with the speculative buyers. Unless we see a move into these stocks by big time investors such as pension funds I really can't see this moving until there is substantial proof a profit will be made. Mergers and acquisitions may keep things steady, even boost prices but long term I have my doubts. We also have to consider that people will be able to grow 4 pot plants at home, packaging and marketing regulations may be an issue, amongst other problems.

I work with a guy that has $300,000 on Canopy. He bought in at around $12.00. I see the stress in his face. For his sake I hope it skyrockets and he pulls out when the going is good.

[pikergolf]

I believe there will be a winner in Mary Jane stocks. But I'm not going to bet a lot on one of them. Till they start turning a profit who knows who the winner will be.

[play.soccer]

Bought 250000 shares of MMJ at 3 cents, it's at 5 cents. I'm up $4000+. It hit 6.5 cents a few weeks ago. Holding on just to see what could happen. Also have ACB and BLO (breathalyzer company)

[From The Hip]

Originally Posted by Weedy1

I'm not convinced of a huge rise considering the announcement Sunday/Monday of this week only resulted in a 10% move. The market may already be saturated with the speculative buyers. Unless we see a move into these stocks by big time investors such as pension funds I really can't see this moving until there is substantial proof a profit will be made. Mergers and acquisitions may keep things steady, even boost prices but long term I have my doubts. We also have to consider that people will be able to grow 4 pot plants at home, packaging and marketing regulations may be an issue, amongst other problems.

I work with a guy that has $300,000 on Canopy. He bought in at around $12.00. I see the stress in his face. For his sake I hope it skyrockets and he pulls out when the going is good.

All I can say for your friend is his timing stinks.Had he got in at $3-5 a share when Canopy was going through that huge surge and got out at $12 he would be lovin it....right now he is under water and may lose his nerve when it hits $12 again.

FTH

[^v^Tinda wolf^v^]

Legal skunk weed I'm going to eat a brick of hash like a chocolate bar when it's legal to do so

Sorry for the derail...just sayin.

[Weedy1]

Originally Posted by Weedy1

A post earlier today got me thinking. Has anyone bought into the marijuana stock frenzy or any other crazy overvalued stocks? There seems to be a lot of speculative trading and interesting things happening in the market nowadays. I got a real kick out of Marc Cohodes on BNN yesterday concerning the real estate situation in Toronto.

http://www.bnn.ca/video/cohodes-stil...capital~981334

How big of a bubble can be blown? When do you leave the party and take your party favors?

So? Anybody short Home Capital?

[bdub]

Originally Posted by Weedy1

So? Anybody short Home Capital?

I wish I was a few months ago. It is a scary short right now, could easily go either way I think. The business model is sound and its not like they are having huge numbers of defaults on their mortgage book. They are suffering a run on deposits in a highly leveraged business. Maybe a deep pocket will swoop in and pick up the scraps, like the pension fund thats already into them a couple billion. Fascinating to watch it unfold.

[Weedy1]

Originally Posted by bdub

I wish I was a few months ago. It is a scary short right now, could easily go either way I think. The business model is sound and its not like they are having huge numbers of defaults on their mortgage book. They are suffering a run on deposits in a highly leveraged business. Maybe a deep pocket will swoop in and pick up the scraps, like the pension fund thats already into them a couple billion. Fascinating to watch it unfold.

I just hope that deep pocket isn't the Can Gov't. The players need to be very careful right now. I'm starting to think this whole fiasco cascading into a world of financial fear is becoming a reality. The bank stocks are reflecting the sentiment right now. I went stateside today, hugely, as Trump would say.

[bdub]

Originally Posted by Weedy1

I just hope that deep pocket isn't the Can Gov't. The players need to be very careful right now. I'm starting to think this whole fiasco cascading into a world of financial fear is becoming a reality. The bank stocks are reflecting the sentiment right now. I went stateside today, hugely, as Trump would say.

Anythings possible, we got the moodys downgrade of canadian banks this week, houshold debt at record highs and yeilds pointing higher. All this is getting baked into the price of the stocks. We had a downgrade in 2013 of our banks which turned into a non-event. Household debt is an old story. Yeilds and how fast they rise are the wild card I think. Inflation seems pretty benign for now but an oil shock or something else could trigger something. Almost certainly it will be something we don't expect that will cause the next crisis.

[Weedy1]

Originally Posted by bdub

I wish I was a few months ago. It is a scary short right now, could easily go either way I think.

Yah wouldn't be doing that right now unless I found a lamp in the desert.

[husky hunter]

Originally Posted by Weedy1

A post earlier today got me thinking. Has anyone bought into the marijuana stock frenzy or any other crazy overvalued stocks? There seems to be a lot of speculative trading and interesting things happening in the market nowadays. I got a real kick out of Marc Cohodes on BNN yesterday concerning the real estate situation in Toronto.

http://www.bnn.ca/video/cohodes-stil...capital~981334

How big of a bubble can be blown? When do you leave the party and take your party favors?

The Pot stocks go up a an unbelievable rate ...just wait until they figure out there is an oversupply that will fill a huge warehouse and watch the prices tank....

[Joe Black]

Originally Posted by husky hunter

The Pot stocks go up a an unbelievable rate ...just wait until they figure out there is an oversupply that will fill a huge warehouse and watch the prices tank....

Didn't buy any at 2$ a share eh?

[HVA7mm]

There will be many more red and green days going forward, leading up to and after the actual federal legalization date. There will be stock manipulation, mergers and acquisitions, legal hurdles etc. Then you have to also factor in what the lawmakers decide to do south of the border going forward. A real roller coaster for sure, but there will be many fortunes made/lost just like any other segment of the market. I'll try to be as well informed and patient as possible, that coupled with how much I am willing to risk will decide the outcome for me.

[bdub]

Could be just the start of a rough ride for most stocks here. We are into extreme tightening mode in the US starting in October and its going to continue to ramp up till next October unless they break something. The bubble stuff could really get killed here, or maybe not? Gonna be interesting. Been a long, long time since a correction, things are expensive, yields are moving up, phone lines to the banks are overloaded with retail investors buying heavy...etc.

[HVA7mm]

Anyone holding GLH? I'm hoping it might break out later this year, or early next year.

[HighROI]

Originally Posted by Weedy1

A post earlier today got me thinking. Has anyone bought into the marijuana stock frenzy or any other crazy overvalued stocks? There seems to be a lot of speculative trading and interesting things happening in the market nowadays. I got a real kick out of Marc Cohodes on BNN yesterday concerning the real estate situation in Toronto.

http://www.bnn.ca/video/cohodes-stil...capital~981334

How big of a bubble can be blown? When do you leave the party and take your party favors?

Don't you wish you had bought into the overvalued marijuana stocks when you made this post originally? Could be up about 500%!!

[Weedy1]

Originally Posted by HighROI

Don't you wish you had bought into the overvalued marijuana stocks when you made this post originally? Could be up about 500%!!

I owned Aurora stock when I made the first post. Read a little further.