Been working on a new analysis of the entire cannabis sector for the past few days, should be finishing it up in a bit, and if there are any new picks, will update the stickies tonite
In terms of the MJ sector, what I’m specifically looking for are stocks that have clear potential to gain at least 1000%-2000% from their current prices
That’s the same standard I used in 2016 and I’ve never lowered it
Given the spontaneous negative catalysts in the cannabis (MJ & Hemp/CBD) sector we’ve seen over the past 7 years, I also think it’s very important to do my best to protect against any downside risk
So the reward/risk ratio is a very important metric as well
Now there is always sector risk, which impacts all stocks, but there is also dilution risk, which is a stock-centric factor
The subpenny plays generally tend to run up first, but they also tend to dilute their floats at the highest rates
And the greater the runup, the greater the downside risk from current prices
Likewise, the greater the dilution, the greater the downside risk from current prices
So while it can sometimes be tempting to ignore metrics like absolute share dilution, rate of float dilution, float size, and rate of float growth, since my objective is always selecting stocks with the greatest chance of achieving at least 1000%-2000% from their current prices, ignoring those factors simply isn’t an idea worth entertaining
I’m not only looking for really big gains from current prices, I’m also looking for stocks that possess the highest probability of delivering them in 2021
Sleek
AI
