Hi All,
While it is always disappointing to see a stock retrace a bit, the overall trend is still very strong. Two months ago this was $1 and all the gloom and doom was this was going to 80 cents and people scoffed at $3-$5. And one concern was the lack of awareness and volume on the stock. Now look at where we are, the stock ran up to levels even some bulls were not expecting, we received exceptional validation and credibility from the most respected analyst on the Cannibis market. Cowen gave us a $3 recommendation, and then after earnings raised it to $4.50. We were able to drive a lot of awareness of the stock and now we have real trading volumes. Had Clinton won, we probably would have spiked higher. However, with Trump that brought uncertainty since he has given conflicting messages and most were not expecting that result. So it caused a sell the news event for the industry. People who were up a decent amount started to move to risk off. I think we will see some volatility until Trump addresses it. That said, personally I am not concerned and know Kush and others are super excited about the future. I trade on real news and not short term trading. Remember when I challenged some of the shorts to just put a gentlemen's bet and lets look at the stock price in 4-6 months - well I was right on it. The real news is that the industry had a huge win on new states (couldnt have really asked for much more), I believe Trump is a state's right guy and won't cause much trouble, the company more than DOUBLED revenues from last year, Cowen immediately raised their targets, and I expect 2017 will be a year for even stronger growth. Quickly Kush is turning into a company with growing and material revenues. They have the highest cash balance they have ever had, essentially no debt, cash flow positive, they have tons of institutional awareness. If you go away and look at stick price in 6 months I think it will be much higher again.
I care less about hype and more about their accomplishments and it continues to impress. Where we are now, it will trade around for awhile. It will eventually find bottom and that bottom will be much higher than where it was months ago, then it will retrace and come back. I wouldnt be too worried. If you are in this, you should be in for the mid to long term, and if so, everything is going extremely well. I think they will have so much growth opportunity you could see an institutional raise so they can go even more aggressively. I would see that as a positive as I think institutions want in.
