Nothing quite like this but the Cannabis market was WAY over priced, I mean way over priced! First, cannabis is a commodity so growers to me were out. Price rules. Shorters have always been around, but add to that mm manipulation, technology helping to drive prices down (look up Cramers take on manipulating stocks) So back in dot com era this same thing happened in 2001. In 2000 you had virtual companies being worth more entire countries. The dot com bubble burst. Lesson: look at a companies cash on hand first and foremost. How long can they last with present revenue. Look at EPS, P/E multiples etc. Look at management. Do not reinvent the wheel. Follow Buffets advice buy top companies in their given sectors with top management and cash. My top companies: Extractors (MEDIF) MSO's (GTBIF TCNNF CURLF) CBD/HEMP (CWBHF) Pick shovels (IIPR KSHB GRWG) I do not like growers because cannabis is a commodity. Niche growers like TGODF or FLWPF may make a difference but then management, or lack of transparency (TGODF) will kill a stock. Then you have companies like PYX and VFF who grow tobacco (PYX) and now have moved to HEMP, VFF tomatoes cucumbers and HEMP.
Then you have Beverage and Edibles. (DTEA NBEV PLPRF and I will include SRUTF too)
Next you have retail like DTEA which has cannabis companies lined up at their door, and they are like a starbucks but with high end TEA and no debt.
Last you have spec plays the most risk and most reward short term. SRUTF TLLTF EVIO. Of these management is key. EVIO has worst management, the most inept. SRUTF has the best management and they are a real player in the Beverage and edibles, and TLTTF is awaiting a real CEO, but have multiple misunderstood companies (no communication skills from CEO) that is real and they will explode . Of these SRUTF is the safest by far, Its just consistent but this would be only a spec play as of today for me. (fun money but will turn into long term going forward so put it away) TLTTF and SRUTF are both going to be great investments LONG TERM! So yes this is common man but now you also have technologies that sway the investors into thinking one way and the mms take advantage and rule this game. Really go check out Cramers piece on manipulating the market.
With SRUTF you just buy on dips, when it runs 100% sell and take some profits, try and play with house money, and add on dips. Once volume picks up and the pps picks up consistently you may even average up. My best advice is to do your research, be confident with your research, do NOT listen to whats said on the boards, and forget day to day. The worst thing you can do is have FEAR and run with the masses. I love days like this because its like going to a yard sale. Last, make sure your portfolio is diversified. I see people putting their live savings on one stock to get rich. Bad idea. Cash is always king. Keep cash on hand. Look at other sectors: Biotech (MDCO AMRN) Cloud software, gene therapy, cyber security, retail, banking, energy, etc etc. Do NOT just invest heavily in one stock or one sector. Sectors ALWAYS rotate out and in favor.
Look none of us have a clue about investing in the short term. We are all prisoners to manipulation with technologies and money we cannot even imagine. Strong management, strong revenues, sufficient cash on hand, etc.
With SRUTF its a spec play at this point with great technology and management. Get a starting position and add gradually. Do not be the farm. If fundamentals change you change. (see CTST)
None of us any idea we are all just puppets bro. But to be safe follow Buffets rule: top companies in their sectors. I hope this helped and did not bore you.
