# what do you think of these two cannabis stocks?



## Mulak (Feb 7, 2017)

hey guys

I was wondering if anybody bought or checked out these cannabis stocks... organigram holdings (OGI) and eviana health corp (EHC)


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## Just a Guy (Mar 27, 2012)

Fad stocks. May make money short term, probably lose money in the long run. 

One talking head said something about cannabis that I thought was profound. In canada, we sell a lot more lettuce than cannabis, it sells for about the same price per gram, yet no one wants to trade lettuce stocks.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> Fad stocks. May make money short term, probably lose money in the long run.
> 
> One talking head said something about cannabis that I thought was profound. In canada, we sell a lot more lettuce than cannabis, it sells for about the same price per gram, yet no one wants to trade lettuce stocks.


Good to know... how do you decide on what stocks to get?

thinking of buying baytex stock... hoping to get it at $1.99 today


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## EPS_Investor (Sep 7, 2017)

My rule of thumb for even considering a stock in this day in age (after almost two decades of trial & error), show me two quarters of back to back profits and you got me as an investor, or at least interested enough to sift through the balance sheet. Sounds simple right? Way less common than you think in terms of small and medium cap companies. Cannabis stocks have yet to do this, so be careful. Analyze the books before deploying your hard earned money. All these people that made money on the hype early on are one trick ponies and I would love to see them try and do it again. Cannabis, Lithium, Cobalt, Green power, all fads that have come and gone over the last few years.


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## Just a Guy (Mar 27, 2012)

Mulak said:


> Good to know... how do you decide on what stocks to get?
> 
> thinking of buying baytex stock... hoping to get it at $1.99 today


My strategy is very simple. I buy companies I know and use, when they go on sale. Usually in a crisis. 

So, I bought BMO during 2007/8 in the financial meltdown. It paid $2.80 in a dividend at the time, and I bought it at $28. Today the dividend is higher, all the money I paid for it has come back to me in dividends, all my holdings are pure profit. 

The latest company I bought was kraft/Heinz. I’ve heard it’s down 50% (I thought it was only 25% because of the scandal) and everyone seems to think no one wants them anymore...but I don’t think they are going anywhere. 

My plays are all long term, buy and hold, value plays. I probably miss out on a lot of get rich quick stocks, but they don’t lose money. Things like BMO are up over 300% and pay me $15% on the purchase price, and I’ve got no money in the stock anymore...not bad in my opinion. Did the same when income trusts were changed, and other downturns.


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## kcowan (Jul 1, 2010)

Mulak said:


> Good to know... how do you decide on what stocks to get?


Avoid the talking heads recommendations. Look for unloved stocks with good fundamentals. It won't be exciting but will win in the long run.
First half gains:
BCE & Banks 12%
Premium Brands 25%
Suncor 11%
CSCO 28%
all ignored by the promoters.


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## Mulak (Feb 7, 2017)

EPS_Investor said:


> My rule of thumb for even considering a stock in this day in age (after almost two decades of trial & error), show me two quarters of back to back profits and you got me as an investor, or at least interested enough to sift through the balance sheet. Sounds simple right? Way less common than you think in terms of small and medium cap companies. Cannabis stocks have yet to do this, so be careful. Analyze the books before deploying your hard earned money. All these people that made money on the hype early on are one trick ponies and I would love to see them try and do it again. Cannabis, Lithium, Cobalt, Green power, all fads that have come and gone over the last few years.


I assumed you aren't a fan of the beyond meat hype?

are there certain industries/sectors that you only look into? like banks, telecomm, transportation?

is there a rule of thumb on how much you spend on a stock minimum... like do you buy 500 shares minimum for each stock or spend minimum 3k per stock?

do you hold them for a long period of time or sell them when they are on a high and buy it again when they are down?



Just a Guy said:


> My strategy is very simple. I buy companies I know and use, when they go on sale. Usually in a crisis.
> 
> So, I bought BMO during 2007/8 in the financial meltdown. It paid $2.80 in a dividend at the time, and I bought it at $28. Today the dividend is higher, all the money I paid for it has come back to me in dividends, all my holdings are pure profit.
> 
> ...


you never sold your stocks?

BMO from $28 to $97 is a nice bump up to sell and use some money to buy some lower price value stocks and wait till BMO go down a bit and buy some again... but it not your style?



kcowan said:


> Avoid the talking heads recommendations. Look for unloved stocks with good fundamentals. It won't be exciting but will win in the long run.
> First half gains:
> BCE & Banks 12%
> Premium Brands 25%
> ...


thats pretty good gains....do you hold them for a long period of time like the other previous posters? or sell them at a certain price point?

how do you find stocks that are unloved and ignored by promoters... I never heard of premium brands or suncor for example ... is it hard to search through so many companies on TSX?


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## Just a Guy (Mar 27, 2012)

Why sell, its all profit, it makes a guaranteed 15% (and growing) from my purchase price in dividends...why give my money to the government and cut the earning power by the taxes I give up? I can margin the account if I needed the money and BMO isn’t going anywhere. I do keep an eye on my holdings (loosely) if I see some reason they may fall, I might consider selling, but I never have found a reason.

I don’t need to sell to buy more at this point either. My strategy doesn’t really lend itself to buying often, and the real estate side has plenty of income and equity to play with.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> Why sell, its all profit, it makes a guaranteed 15% (and growing) from my purchase price in dividends...why give my money to the government and cut the earning power by the taxes I give up? I can margin the account if I needed the money and BMO isn’t going anywhere. I do keep an eye on my holdings (loosely) if I see some reason they may fall, I might consider selling, but I never have found a reason.
> 
> I don’t need to sell to buy more at this point either. My strategy doesn’t really lend itself to buying often, and the real estate side has plenty of income and equity to play with.


how much of your own money did you buy the stocks? how much dividends do you usually get monthly?

do you use the dividends to buy more stocks?


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## Just a Guy (Mar 27, 2012)

Stocks require your own money, unlike real estate...I never spend money, anymore (things were different when I was broke) that I can’t afford to lose. I consider invested money spent money, like I bought a cup of coffee spent. I don’t really plan a set amount, or worry about dividends much (I got rental income dividends each month). I rarely check my portfolio...

This isn’t my style, I’m a buy and hold, value investor so, like real estate, I buy on sale, cheap, and then collect the money. How much I spend depends on the stock price, amount of cash I have at the time, and how I feel about the stock at the time. I’m too lazy usually to set up a drip, but some stocks have done that automatically. 

I also don’t worry about asset allocation, rebalancing, or other such things which may reduce my earning power. I buy stuff I think will be a winner long term, when it’s cheap...so far, this hasn’t lost money for me. 

I did lose money one time when I tried to play a pump and dump. I knew it was a pump and dump, I knew I could make a lot of money if I just followed it for a couple weeks...I didn’t. It wasn’t in my personality to do so, so I missed the sell point. Taught me a lesson. Even though I knew what to do, my personality didn’t let me do it. My current strategy works well with my personality. Eventually I wrote off the loss against some gains, so even my education didn’t cost me in the long run. 

Sorry, it’s not an exciting or complicated investment strategy. All the companies I’d buy are well known to me, and solid companies (I’ll double check my research before I buy just to make sure, but I don’t really research hundreds). As I said, my latest acquisition is kraft/Heinz (paid less than Warren for it), I don’t expect it to make tons of cash fast, but I also don’t expect it to disappear or not increase in the future...it’s paying 5% dividend at the price I paid, and that’s after it was slashed. Better than a hisa.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> Stocks require your own money, unlike real estate...I never spend money, anymore (things were different when I was broke) that I can’t afford to lose. I consider invested money spent money, like I bought a cup of coffee spent. I don’t really plan a set amount, or worry about dividends much (I got rental income dividends each month). I rarely check my portfolio...
> 
> This isn’t my style, I’m a buy and hold, value investor so, like real estate, I buy on sale, cheap, and then collect the money. How much I spend depends on the stock price, amount of cash I have at the time, and how I feel about the stock at the time. I’m too lazy usually to set up a drip, but some stocks have done that automatically.
> 
> ...


I respect that.

different strategy for different people.... you only buy dividends paying stocks

how many companies do you have currently?


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## Just a Guy (Mar 27, 2012)

No I buy stocks I think will make money, some are dividend ones, some aren’t. Not really sure how many different stocks I own, I’d have to look and that takes more effort as I’d have to check various accounts. My guess would be between 15 and 30. I know some like international flavours and fragrances...I bought it when I learned about the USA meat processing procedures. They provide the chemicals and spices Americans use to turn their “meat” into something that tastes like meat. Did you know cargil shuts their plant down for two days to clean it so they can produce meat for export to Canada and Europe. They produce for two days for export, then three days for America and then clean for two and repeat. They also produce the pink ooze for America (I love how McDonalds says they don’t use it in chicken nuggets, but it was used for burgers...not sure if it still is, they don’t say no...but it’s not allowed in Canada. 

I remember buying funeral homes after some people died in our group and we were impressed by how they did the service. Turns out there are only 4 major companies in all of North America which controls all the funeral homes and graveyards. Lots of boomers are dying these days, with more to come...lots of upsales too. Service Corp (I looked it up )

I own some pizza pizza which was the largest pizza franchise in Ontario, similar strategy to Tim hortons when it came to running the company. They pay out 6-8% (I don’t remember) of all top line sales for use of the logo and trademarks. They don’t own the company, they just collect and pay out cash from every sale. They also bought pizza 73 which works out west. Same deal, but a bigger chunk of the top line. It was an income trust, and I bought when the government said they were making changes and they all dropped by 25%. 

I did buy some of that Forrest Gump fruit company back when people didn’t like them. At the time they were valued at 3.5B, but had 4.5B in the bank...people said they’d be out of business soon...didn’t really work out that way. They didn’t pay a dividend back then, they do now. 

I could keep going but there’s not that much that’s exciting, plus I’d probably have to look them up or think a little harder.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> No I buy stocks I think will make money, some are dividend ones, some aren’t. Not really sure how many different stocks I own, I’d have to look and that takes more effort as I’d have to check various accounts. My guess would be between 15 and 30. I know some like international flavours and fragrances...I bought it when I learned about the USA meat processing procedures. They provide the chemicals and spices Americans use to turn their “meat” into something that tastes like meat. Did you know cargil shuts their plant down for two days to clean it so they can produce meat for export to Canada and Europe. They produce for two days for export, then three days for America and then clean for two and repeat. They also produce the pink ooze for America (I love how McDonalds says they don’t use it in chicken nuggets, but it was used for burgers...not sure if it still is, they don’t say no...but it’s not allowed in Canada.
> 
> I remember buying funeral homes after some people died in our group and we were impressed by how they did the service. Turns out there are only 4 major companies in all of North America which controls all the funeral homes and graveyards. Lots of boomers are dying these days, with more to come...lots of upsales too. Service Corp (I looked it up )
> 
> ...


thats a bit morbid with both the pink ooze and funeral homes lol

I actually did thought about the baby boomers going to start dropping like flies... like buying stocks in chartwell.. probably most popular company in senior homes

pizzapizza ... classic canadian brand power... I didnt know pizzapizza bought pizza 73, interesting name


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## Just a Guy (Mar 27, 2012)

There’s always a reason I buy the stocks, I know a lot about whatever company it is, usually because it impressed me in some way. I’m not in a hurry to buy, I avoid fad stocks, even if i think they’ll do well (Facebook, cannabis stocks, etc) I may miss a lot of opportunities, but I also lived through the dot bomb era where companies with no assets, no income, no products sold for millions...until they didn’t. Never bought into the “new” economy. 

I also use a lot of common sense. During the income trust adjustment, the talking heads all loved consumer water heaters. They rent hot water tanks in the east. Something like $50/month. The problem can buy a tank for $350-500...why rent for $50/month? I don’t even know if they still exist, but it was the #1 recommendation for a while...

By the way, why not just reply instead of copying the text. It’s only the two of us conversing


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## junior minor (Jun 5, 2019)

*what about hedge funding*

I don't think this will be a big thing in the cannabis industry right away because it's too small. A friend I had back in the days told me His father's family had some important mineral reserves on the land they had owned for Generations in Chile, and this became a problematic issue with big mining companies because they hedged on the fact that this was near their prospective lands. 

Thanks for the neat advice!


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## Mulak (Feb 7, 2017)

Just a Guy said:


> There’s always a reason I buy the stocks, I know a lot about whatever company it is, usually because it impressed me in some way. I’m not in a hurry to buy, I avoid fad stocks, even if i think they’ll do well (Facebook, cannabis stocks, etc) I may miss a lot of opportunities, but I also lived through the dot bomb era where companies with no assets, no income, no products sold for millions...until they didn’t. Never bought into the “new” economy.
> 
> I also use a lot of common sense. During the income trust adjustment, the talking heads all loved consumer water heaters. They rent hot water tanks in the east. Something like $50/month. The problem can buy a tank for $350-500...why rent for $50/month? I don’t even know if they still exist, but it was the #1 recommendation for a while...
> 
> By the way, why not just reply instead of copying the text. It’s only the two of us conversing


I'm assuming that you have a lot of boring kind of companies in a way... like banks, telecomm, utilities, industrial etc that been around for years and years


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## Just a Guy (Mar 27, 2012)

No telecom, I avoided nortel because we knew about their crooked business practices like banking the profits twice through different divisions. They’d try to sell it to our business, then we read the financials and it didn’t make sense. No utilities. Avoided Enron. no mines. No oil. No world com. If a talking head likes it, I probably don’t. 

Like I said, I buy stuff I know and use. If I can’t understand them and where the money is, I don’t touch them.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> No telecom, I avoided nortel because we knew about their crooked business practices like banking the profits twice through different divisions. They’d try to sell it to our business, then we read the financials and it didn’t make sense. No utilities. Avoided Enron. no mines. No oil. No world com. If a talking head likes it, I probably don’t.
> 
> Like I said, I buy stuff I know and use. If I can’t understand them and where the money is, I don’t touch them.


pretty strict stock picking... probably the most I have seen from a person on their style of picking stock... a lot of the canadian markets are from the sectors are telecom, industrial, materials, banks etc which you don't touch.. making me wonder what else is left haha since canadian market got limited selection comae

a lot of people I have seen or heard picked stocks from the sectors I mentioned... wasn't sure if I mentioned it in my previous posts but currently I have 1500 shares from Baytex at 1.99/each.. it down to 1.88 cause of the trump and the tariff which cause the stock to drop... they have good quarter earnings reports a few times in a row, just crappy timing


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## Just a Guy (Mar 27, 2012)

I don’t really care about sectors, rebalancing, being “diversified” (I own stocks, companies and real estate, I’m actually diversified, not like people who just own stocks and call themselves “diversified”). I don’t sell my stocks, so I don’t trigger taxes. I don’t buy stuff just to own stuff. I’m not really restricted in What I’ll buy, but it has to be something I think is good. I’d never really heard of baytex for example, they aren’t a supplier of mine, so I’d never have bought them. Not saying they’re bad or good, I know nothing about them. I don’t buy companies I know nothing about. To me there’s a big difference between baytex and kraft/Heinz. Does this mean kraft/Heinz is a winner in waiting, only time will tell, they have a lot of problems, but they were also cheap. 

I don’t pick stocks based on sectors, I pick them based on their individual status. I would have bought GM, for example, when the government owned a large chunk (I didn’t get around to it because I was busy) because I knew the government would sell it low and then the stock goes up. They always blow investment opportunities. Also, with the government owning it, it wasn’t going to zero. That’s one company I may have sold after taking the profits, not sure.

I guess you could call my method stock picking without a plan. I certainly don’t go looking for anything in particular. What I’ll find, depends on what the market will give me.


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## Mulak (Feb 7, 2017)

definitely like your approach to stock picking

I do own a condo that i'm currently renting it out but eventually I want to move out of my mom's and move in my condo... bought it for 285k and now worth under 400k

definitely going to have to think and change my thought process... easier to pick companies we know and make a sound decision


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## Just a Guy (Mar 27, 2012)

To me, you paid too much for the condo. My price point is under 100k/door. I know you can’t do that in all cities, but the cash flow doesn’t work very often st higher prices. In your case I’d sell it and buy 4 places. My son just bought his first rental. A three bedroom in a trendy area for $70k. It was the best deal I’ve seen in decades. He rents it for $1500 to three students, ironically they’re older than him. He’s had a run of really good luck this year. Great summer job, unbelievable condo find, etc.

With trump and China going nuts, it may be a buying opportunity. I should go and look...but I’m a bit lazy.


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## Mulak (Feb 7, 2017)

I live in Oakville, GTA ... There is no way that there is even under 100k price in the GTA area

Where does your son live?


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## Just a Guy (Mar 27, 2012)

We keep personal information private. I agree about gta, but they do come up in surrounding towns.


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## Mulak (Feb 7, 2017)

Oh ok, no problem ...you know that I'm not actually asking for your address right? 

Just general area.. west area like hamilton, Grimsby or north area like guelph or Cambridge or east area like Whitby or oshawa


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## Just a Guy (Mar 27, 2012)

Privacy is so rare these day, I set up policies to protect which little I still have. We never post pictures of our kids on-line, they don’t post pictures of themselves on-line, we don’t say when we’re away, we don’t post phone numbers or credit cards, we don’t disclose much at all really. Even still others who know us post stuff about us, so I’m only limiting the damage.

Some kids have had their entire futures destroyed by the lack of privacy these days. Adults too. It’s just a general philosophy. Ironically, I didn’t even realize we were doing it until someone I know pointed out that he respected the fact that I neve posted pictures of the kids.

I tend to be superficially knowledgable about a lot of areas, I cover a lot of areas. If you want good advice about Hamilton, talk to Mr. Matt. He’s trying to get big in that area.


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## OnlyMyOpinion (Sep 1, 2013)

^ Too true. Its made more problematic by relatives, friends or total strangers who think nothing of posting a photo containing other people on fb or instagram, etc. without asking permission. I try to stay out of the range of cameras at social and family events. You don't really want my picture anyway. :black_eyed:


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## Mulak (Feb 7, 2017)

I respect that ... Tough to do

Back to investing ... I know people do dividends income stocks or pick stocks they believe it going to increase in price and sell

People have 85k on income stocks and get like 400-500/month in dividends which is 4800-6000 annually

People who have 85k in stocks make 10% annually which is 8500 annually... Isn't better to do this route over income investing?


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## Just a Guy (Mar 27, 2012)

Sure, if your crystal ball is working. Dividends have a tendency to increase over the years, but they can also be cut (kraft/Heinz for example). Today the market took down a lot of companies in value, 10% returns for an average investor has been hard to do for the past several years. 

To tell the truth though, these aren’t things I tend to think about when buying. Since I’m a buy and hold type, dividends are nice, but I don’t really need them either. I could always margin the account if I wanted to access some of the equity.

Having gains and dividends is probably the best solution.


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## kcowan (Jul 1, 2010)

Just a Guy said:


> Privacy is so rare these day, I set up policies to protect which little I still have. We never post pictures of our kids on-line, they don’t post pictures of themselves on-line, we don’t say when we’re away, we don’t post phone numbers or credit cards, we don’t disclose much at all really. Even still others who know us post stuff about us, so I’m only limiting the damage.


Do you know Frank O'Brien? He claims to know where the RE values are.


Just a Guy said:


> I tend to be superficially knowledgable about a lot of areas, I cover a lot of areas. If you want good advice about Hamilton, talk to Mr. Matt. He’s trying to get big in that area.


Hamilton is not Oakville but I agree that Oakville is not a place to make money on rentals. You pay for proximity to Toronto and a nicer environment.


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## Just a Guy (Mar 27, 2012)

Don’t know him personally and those are pretty small towns he’s recommending. I tend to stay in major cities.


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## Mulak (Feb 7, 2017)

i noticed people in this forum that a lot of them only pick canadian stocks... is there a reason why they don't pick american stocks as well? is there additional taxes/fees from buying stocks from another country?


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## Just a Guy (Mar 27, 2012)

Many people aren’t very creative when it comes to investing, they buy what they’re told to buy. 

However, to answer your question, you have to consider the exchange rate, it can play a huge role in your returns. For example, had you bought several years ago when the dollar was trading at close to 0.50, then sold when it went up to par, half your gains were lost just in the currency. Of course it can also work in reverse to increase your profits. 

Also you lose withholding taxes on dividends.


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## Mulak (Feb 7, 2017)

Just a Guy said:


> Many people aren’t very creative when it comes to investing, they buy what they’re told to buy.
> 
> However, to answer your question, you have to consider the exchange rate, it can play a huge role in your returns. For example, had you bought several years ago when the dollar was trading at close to 0.50, then sold when it went up to par, half your gains were lost just in the currency. Of course it can also work in reverse to increase your profits.
> 
> Also you lose withholding taxes on dividends.


ahhh of course duh

holding US stocks for some years not knowing the currency rate could up or down in the future ... can affect gain when selling the stocks or dividends


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## Spudd (Oct 11, 2011)

Mulak said:


> ahhh of course duh
> 
> holding US stocks for some years not knowing the currency rate could up or down in the future ... can affect gain when selling the stocks or dividends


Additionally, when you buy US stock, unless you do Norbert's Gambit, you have to pay foreign exchange fees. (Once the money is in USD, you can keep buying/selling US stocks without foreign exchange fees at most brokers, but to change CAD to USD incurs fees (and vice versa)).


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