JohnCM Investment Corner

[JohnCM]

HIGH TIDE

GOLDI-OX INVESTING 01/27/2021

https://www.youtube.com/embed/nVSrkKZWZDg

High Tide Inc. (HITIF)

I goofed!! Only sold 10,000 at the top.

NOW I WANT TO WARN YOU!!

When all of the fanboys spot High Tide and drive it up. When the volume increases and the chart becomes parabolic.

When the RSI(14) hits 100. (It may have today, I'll have to check.) When these things happen. Keep an eagle eye on the chart and the price. (It happened, Jan 27, RSI(14) hit 90).

You want to JUMP OFF or lighten your load at the top!! Because the steep ramp, the parabolic move will not continue. (It didn’t). The price will fall off a cliff, find a bottom ($0.34) and slowly resume its move, BUT at a MUCH slower pace.

My initial guess is the "ramp" will last 3 to 4 days.(6 days).

I am just going to throw out some numbers without spending time, as yet, on this. Let's look at the buyout Liberty Health.

$0.40 to a buck. Now, I know this was driven by a buyout by AYR, but what if High Tide makes the same move, but drops because the is not supported by the buyout price floor?

Let's say High Tide at $0.30 makes the same 150 percent move. A 1 1/2 bagger is $0.75 (The price hit $0.60 at the top) Would you be happy selling at $0.75 or would you be a pig and get slaughtered? Bird in the hand? Or two in the bush?

My basis is $0.17. Would I be happy selling at $0.75? A 440 percent return? Yes. So, with 100,000 shares you place 10 limit orders.

SELL

10,000 $0.50 These would trigger. I only sold 10,000 shares
10,000 $0.55
10,000 $0.55
10,000 $0.65
10,000 $0.65
10,000 $0.70
10,000 $0.70
10,000 $0.75
10,000 $0.75
10,000 $0.75

High of day (HOD) January 20th 2021 $0.3283

This is good. No enormous move at the open. Things are still under control. When the stock movement becomes very volatile, that is the time you need to have your stock price action plan in place.

The expected ramp may or may not take place (It did). Who knows? But you want to be ready if it does. It is difficult to make reasoned, unemotional, sound decisions when prices are shooting up or down.

Or you might be a "buy and hold" guy. I think that will work for the upper-tier name. GrowGeneration, AYR, Trulieve, Green Thumb, Cresco, Curaleaf, Tilray.

IF High Tide ramps, do you have your exit plan in place?

This does not mean leaving High Tide forever. Fan Boys will launch this rocket into space, that is when you sell. The rocket comes back to earth. But not all the way back. Back to $0.40. (Currently $0.38) You buyback!

THEN everyone looks at High Tide and they say it IS CHEAP. Then they drive it back up. BUT, it does not reach the previous top $0.75. Maybe $0.65 or $0.70 (This action happened very quickly. 01/26 0.60 to 0.50. 01/27 0.58 to 0.38 to 0.48).

Then you SELL AGAIN! The stock eventually settles in around $0.45 to $0.50

That is when you pick up your "long term", "buy and hold" position (We are there now).

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