#9141227 - 09/25/17 09:37 PM
Weed stocks luring young people to 'invest'
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furball
Post Master Sr
Registered: 09/24/03
Posts: 9484
Loc: Toronto, ON
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#9141444 - 09/26/17 08:37 AM
Re: Weed stocks luring young people to 'invest'
[Re: Screamin Type ARGH!]
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spd-dmn
Post Master
Registered: 11/24/04
Posts: 2271
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It's a fun yolo play and based on the last 12 months it has definitely been a roller coaster ride. Just use some TFSA room and be prepared to lose everything. 
It kinda feels like the industry is slowwlyyyy starting to shift from hyper drive to performance-based results (aka reality), but there are still a few industry catalysts to come. Though there are already endless discussions, like in any speculative space, on what is already priced in and what isn't.
It's a total crapshoot though with so many unknowns still. One small gov press release here or there and everything can drop 10% in a day. Major swings, def not for the faint of heart or the weak of hand.
For what it's worth, I'm holding canopy (TSX WEED) since the 2.60 days and made a few buys of supreme (TSXV FIRE) to average down to 1.36
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#9141779 - 09/26/17 12:14 PM
Re: Weed stocks luring young people to 'invest'
[Re: spd-dmn]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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I could write way too much about this.
When initially submitting my ACMPR application with health Canada my partner and I were in discussions with Dundee IB to raise capital by going public for our company. THis is pre 2017 Q1.
There is so much investor fatigue in the cannabis market right now and so many hyped up companies that are complete crap but the retail investor yahoos still continue to throw good money at bad.
I made a good return on the emblem pre IPO issue because I got in before every reddit troll tried to get in at issue date. Stock has lost more than half its value since the IPO, I wonder how many people are still sitting on those losses  but of course no one talks about it 
I called it a while back in the OT thread, Aphria is probably my favourite publically traded company for a long term hold. I even tried to troll their credit union for financing our venture to no luck, but these guys have a good grasp of the business. Even though I am not a big fan of the greenhouse grow aspect, they are smart for preparing for commoditization.
If anyone has specific questions then post up.
The rest of the players have a ton of downside risk.
For example abcann, which arguably makes the best product right now has way too high of a cap rate and they will not be able to sustain themselves long term. They also signed a financing deal with Cannabis Wheaton which will not work in their favour.
Medreleaf in Markham is trying to be relevant, not sure about the mgmt.
Cronos is crushing it long term imo, so is Aphria.
Emblem, emerald health, beleave...a ton of hype but not much behind them as of right now.
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#9141785 - 09/26/17 12:18 PM
Re: Weed stocks luring young people to 'invest'
[Re: Risky Business]
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c2k
Post Master Supreme
Registered: 05/21/00
Posts: 19291
Loc: Wiesloch-Walldorf, Germany
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I could write way too much about this. When initially submitting my ACMPR application with health Canada my partner and I were in discussions with Dundee IB to raise capital by going public for our company. THis is pre 2017 Q1. There is so much investor fatigue in the cannabis market right now and so many hyped up companies that are complete crap but the retail investor yahoos still continue to throw good money at bad. I made a good return on the emblem pre IPO issue because I got in before every reddit troll tried to get in at issue date. Stock has lost more than half its value since the IPO, I wonder how many people are still sitting on those losses but of course no one talks about it I called it a while back in the OT thread, Aphria is probably my favourite publically traded company for a long term hold. I even tried to troll their credit union for financing our venture to no luck, but these guys have a good grasp of the business. Even though I am not a big fan of the greenhouse grow aspect, they are smart for preparing for commoditization. If anyone has specific questions then post up.
HMMJ has Aphira in their holdings. Although I have the morningstar sheets on at least several companies, why is morningstar rating the companies an "F" on profitbility whereas their returns are in double digits since IPO? I wont scan/post the morningstar information sheets, too much work to join them together.
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#9141789 - 09/26/17 12:21 PM
Re: Weed stocks luring young people to 'invest'
[Re: c2k]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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You just answered your own question:
profitability =! stock cap gain (returns)
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#9141793 - 09/26/17 12:25 PM
Re: Weed stocks luring young people to 'invest'
[Re: Risky Business]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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Also stay away from ETF's there have already been a few failures/scandals. Like any emerging market too much is happening too fast.
If you want exposure to the industry pick a company that you believe in and go from there. An ETF doesn't have much upside risk, but bears all the downside.
Personally I wouldn't be in any of the companies right now. There is speculation that there will be a run up again upon legalization of rec, but so much of that is already priced in, so are their expansion plans, etc even the yields that no one can meet have been priced in. They are slowly coming back hence the decreases, but the bottom is much lower.
How can you have a company valued at 30M+ without production, without naming names the same company was even valued at $90M at peak with peak production if successful of $3M of revenue a year, LOLZ
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#9141799 - 09/26/17 12:31 PM
Re: Weed stocks luring young people to 'invest'
[Re: Risky Business]
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c2k
Post Master Supreme
Registered: 05/21/00
Posts: 19291
Loc: Wiesloch-Walldorf, Germany
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Also stay away from ETF's there have already been a few failures/scandals. Like any emerging market too much is happening too fast.
If you want exposure to the industry pick a company that you believe in and go from there. An ETF doesn't have much upside risk, but bears all the downside.
Personally I wouldn't be in any of the companies right now. There is speculation that there will be a run up again upon legalization of rec, but so much of that is already priced in, so are their expansion plans, etc even the yields that no one can meet have been priced in. They are slowly coming back hence the decreases, but the bottom is much lower.
How can you have a company valued at 30M+ without production, without naming names the same company was even valued at $90M at peak with peak production if successful of $3M of revenue a year, LOLZ
Im not cashing out my Horizon ETF, I've had the shares since inception day in April. However, since Sept 22nd they increased their holdings slightly on canopy, aurora and aphira. 
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#9141805 - 09/26/17 12:35 PM
Re: Weed stocks luring young people to 'invest'
[Re: c2k]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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I am not telling you to cash out anything.
I am saying for anyone looking to get into the market NOW/TODAY/THIS MOMENT, to stay away from ETFs. Odd that you are holding on to something that you've lost your shirt on though.
End of the day I actually don't care what anyone does
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#9141808 - 09/26/17 12:38 PM
Re: Weed stocks luring young people to 'invest'
[Re: c2k]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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My holdings?
I am starting a licensed production, so basically everything I am holding is cannabis, I don't need more exposure
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#9141822 - 09/26/17 12:56 PM
Re: Weed stocks luring young people to 'invest'
[Re: Risky Business]
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c2k
Post Master Supreme
Registered: 05/21/00
Posts: 19291
Loc: Wiesloch-Walldorf, Germany
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My holdings? I am starting a licensed production, so basically everything I am holding is cannabis, I don't need more exposure
Congratulations. All the best!
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#9144119 - 09/28/17 08:29 PM
Re: Weed stocks luring young people to 'invest'
[Re: c2k]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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Here comes the debate, a big outlet is interested in publishing a story on our start up...yet i am still employed full time. Not sure how that would go over unless i remain annon, which defeats the point of the publicity 
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#9144977 - 09/29/17 09:00 PM
Re: Weed stocks luring young people to 'invest'
[Re: TheRealCSnapper]
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BroKe
Post Master Sr
Registered: 09/15/01
Posts: 3833
Loc: Markham, Ontario
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I know a few people that have doubled their money so far. Curious to see what's going to happen after the government monopolizes the industry.
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#9145043 - 09/30/17 09:14 AM
Re: Weed stocks luring young people to 'invest'
[Re: BroKe]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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I am assuming they are basic retail investors? When retail people double their money imagine what's happening on bay street.
Since late 2015 when I got into this I've seen a lot of new minted millionaires, and the ones really benefitting the most from this are lawyers at the top 10 firms. With any emerging industry it's always the lawyers that are in the know, most publically traded cannabis LP's are run by lawyers for that reason alone.
/should've been a lawyer 
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#9145520 - 10/01/17 08:21 PM
Re: Weed stocks luring young people to 'invest'
[Re: Risky Business]
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TheRealCSnapper
Post Master Supreme
Registered: 12/05/02
Posts: 31955
Loc: Toronto, Canada
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I am assuming they are basic retail investors? When retail people double their money imagine what's happening on bay street. Since late 2015 when I got into this I've seen a lot of new minted millionaires, and the ones really benefitting the most from this are lawyers at the top 10 firms. With any emerging industry it's always the lawyers that are in the know, most publically traded cannabis LP's are run by lawyers for that reason alone. /should've been a lawyer
Saw a deck from one of our investment bank about doing an IPO, the fucking fees are outrageous. On average about $1M to go on the TSX and not much less for TSX.V
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#9145533 - 10/01/17 08:49 PM
Re: Weed stocks luring young people to 'invest'
[Re: TheRealCSnapper]
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Risky Business
Provides a Great Work Environment. he/him
Post Master Supreme
Registered: 05/17/10
Posts: 44790
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$1M seems light?
When we briefly entartained the idea, between IB/Legal you are looking at 30% of the raise going to them. There have been hundreds of millions raised in the last 2 years, guess who made out like a bandit lol
It has calmed down though, maybe because more institutions are willing to be stigmatized with "weed" so prices have come down, but $1M seems low, then again i don't know what the raise amount is so maybe it's in line if the amount isn't that big.
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