# pot stocks...today???



## jargey3000 (Jan 25, 2011)

wha' happened to my pot stocks today, man....?
why?


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## newfoundlander61 (Feb 6, 2011)

I don't own any pot stocks myself, but watched this video today on BNN.

https://www.bnnbloomberg.ca/seven-pot-producers-run-afoul-of-health-canada-amid-legalization-growing-pains-1.1159678


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## AltaRed (Jun 8, 2009)

There is likely more pain to come as the industry comes to terms with supply, demand, logistics, etc. I wouldn't be surprised to see a continued fall in pot stock prices, e.g. another 20-30% drop in HMMJ as one example, before it turns around. Everything was priced to perfection.

Rationale for my guess: HMMJ was priced under $15 earlier this year and that was already euphoric anticipation. HMMJ was $10 just a year ago. It could test that level with continued bumbles and missteps.


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## robfordlives (Sep 18, 2014)

Something I've wondered is how much of the TSX malaise is due to this pot frenzy. Look at this comment - gentleman claims to have cleared $450k profit and now focusing on dividend stocks. I personally know of one person who made a $2Million profit on ACB (dumped their entire divorce proceedings in at 50 cents).

https://www.reddit.com/r/weedstocks...l_daily_discussion_october_29/..........can't link a specific comment, here it is:

no because i just wanted to ride the hype train until the legalization date. This industry will become extremely competitive, which will drive pressure on pricing thus will cause lower margins. It will become just like a commodity. Now that many good value companies that are dividend aristrocrats are at massive discounts, I will be buying those instead (i.e. Consumer Staples, Healthcare, Banks, Utilities, short term bonds)


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## doctrine (Sep 30, 2011)

Companies are continuing to raise literal $billions to grow abhorrent amounts of cannabis. Need I say this again? Over 3000+ tons of production for estimated 600-800 tons of consumption. Aurora Cannabis, on it's own, is projecting to supply nearly the entire Canadian market with its domestic production. Someone is going to lose. People just aren't going to smoke 5 times as much cannabis.


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## indexxx (Oct 31, 2011)

doctrine said:


> Companies are continuing to raise literal $billions to grow abhorrent amounts of cannabis. Need I say this again? Over 3000+ tons of production for estimated 600-800 tons of consumption. Aurora Cannabis, on it's own, is projecting to supply nearly the entire Canadian market with its domestic production. Someone is going to lose. *People just aren't going to smoke 5 times as much cannabis*.


I'll give it the ol' college try.

- (actually, I don't smoke at all. Just thought it was funny.)


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## My Own Advisor (Sep 24, 2012)

"Now that many good value companies that are dividend aristrocrats are at massive discounts, I will be buying those instead (i.e. Consumer Staples, Healthcare, Banks, Utilities, short term bonds)".

This is where things are getting interesting....corporate earnings seem to be good from many blue-chips and yet they are down 10% or more in some cases. I don't get it. Time to buy!!


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## jargey3000 (Jan 25, 2011)

im not buying anything til Nov 6


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## Just a Guy (Mar 27, 2012)

It’s amazing that, after things like the dot bomb, breX, worldcom, Enron, nortel and every other “fad” investment that has happened over the years that people are still surprised when it happen again and the bubble bursts. 

I suppose everyone will be “shocked” when the real estate market implodes too...


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## OptsyEagle (Nov 29, 2009)

At least when this one implodes, we will have oodles and oodles of excess pot to deal with. That should help deal with the pain.

Now if we could just get a bubble going in Kentucky Bourbon.


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## jargey3000 (Jan 25, 2011)

robfordlives said:


> Something I've wondered is how much of the TSX malaise is due to this pot frenzy. Look at this comment - gentleman claims to have cleared $450k profit and now focusing on dividend stocks. I personally know of one person who made a $2Million profit on ACB (dumped their entire divorce proceedings in at 50 cents).
> )


are you serious rob??


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## Beaver101 (Nov 14, 2011)

jargey3000 said:


> im not buying anything til Nov 6


 ... what's so special about Nov. 6??? US Thanksgiving isn't until Nov. 22.


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## SixesAndSevens (Dec 4, 2009)

Beaver101 said:


> ... what's so special about Nov. 6??? US Thanksgiving isn't until Nov. 22.


mid term elections in the US.


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## james4beach (Nov 15, 2012)

jargey3000 said:


> > Something I've wondered is how much of the TSX malaise is due to this pot frenzy. Look at this comment - gentleman claims to have cleared $450k profit and now focusing on dividend stocks. I personally know of one person who made a $2Million profit on ACB (dumped their entire divorce proceedings in at 50 cents)
> 
> 
> are you serious rob??


It's possible. A friend of mine heard that a couple he knows in their 40s was close to retirement and had saved up a lot of money (several hundred thousand) but didn't have quite enough. So the husband put all the money into Litecoin -- a crypto currency -- and then lost about 80% of it. Basically their savings got wiped out.

It happens all the time in stocks too. We wouldn't hear about it here because people usually come to message boards and talk about this stuff when things work out. There's a survivor bias at places like CMF that often gives the perception everyone is doing well in stocks... in reality, many people get wiped out in stocks.

Regarding pot stocks, about a month ago TD tightened margin rules on every pot stock and HMMJ, probably to curtail aggressive speculative behaviour on these stocks. I'm not surprised the prices came down after that.


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## Beaver101 (Nov 14, 2011)

SixesAndSevens said:


> mid term elections in the US.


 ... oh that .. :sleeping:


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## robfordlives (Sep 18, 2014)

Although this bubble is different in that it keeps re-inflating. Many times it looked as though the pot stocks would experience a painful death, yet they ended up rebounding. We shall see this time. I mean it's not just retail investors - Constellation is making a huge bet into that sector that could have been done much earlier and cheaper.


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## AltaRed (Jun 8, 2009)

There will be some winners and a lot of losers.


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## indexxx (Oct 31, 2011)

It's interesting that the timing of the drop coincided almost perfectly with the date of legalization. Wednesday was legalization, stocks were roaring- then Monday a complete dive. Seems maybe a large percentage of people were riding things up to the big day, and then selling out to lock in profits, causing a crash in the SP.


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## Just a Guy (Mar 27, 2012)

Not all that surprising...most stocks ride up to announcements all the time. Earnings for example.


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## kcowan (Jul 1, 2010)

Two driving tickets issued in BC, one for possession underage and the other for smoking it. $230 each


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## ian (Jun 18, 2016)

I suspect that the smart money exited the market with their gains intact some time ago and are are on to something else now.


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## indexxx (Oct 31, 2011)

Seeing some recovery in this sector the last couple of days.


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## jargey3000 (Jan 25, 2011)

dead cat?


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## agent99 (Sep 11, 2013)

The CBC said that owners of Cannabis shares may not be allowed into the USA. Considered drug dealers?


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## jargey3000 (Jan 25, 2011)

agent99 said:


> The CBC said that owners of Cannabis shares may not be allowed into the USA. Considered then drug dealers?


how would they know that somebody had 100 shares of acb...or whatever ??


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## MrMatt (Dec 21, 2011)

jargey3000 said:


> how would they know that somebody had 100 shares of acb...or whatever ??


Your broker knows all your holdings.
Bank account information is routinely shared and screened for criminal activity.

That's one easy way.


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## Pluto (Sep 12, 2013)

I heard a prediction that ultimately the pot stocks will consolodate and eventually be bought out by tobacco companies.


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## Kilbarry20 (Aug 19, 2020)

In the end...

NOOOOOBODY cares whether it’s Pot, Wheat, Oil, Banking, Auto Parts, etc.

Only question is whether or not a profit can be made! The entire Canadian Pot Industry was a mug’s game of musical chairs. Stay away!


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## Mechanic (Oct 29, 2013)

I made money on pot stocks. Right before I re-invested it and it tanked. I still have a bunch, I keep it as a reminder


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## Ponderling (Mar 1, 2013)

I was in AH, sold out when it sailed on a Gamestop moment about a year ago to make some money on what for a long time was a dud. . Then got in again 3 month late at 75cents a share. Now it is at 19.5 cents, so hell I will lay around and hope someone buys this dog, or they finally get their therapeutic weed products dream into action.


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