Replies to post #132 on Cannabis Canadian and U. S. Priced At $0.01 to $0.

[PotterBanker]

OK, that's all fine and I will be submitting an updated list for the original contest before tuesday open. Not a problem. Thanks for doing the contest.

The weighted contest is just about picking something that looks good on a weekly basis. The winner scores 1 point, then we move on to the next week.

BTW I don't consider selling for profit the same as throwing a stock away. Throwing a stock away is what you have to do once your a bag holder 4 bags up over the price when the mania subsides and real valuations reign.

You may not see the mania prices again for years. been there done that.

In the real world, market caps on companies that show gross profits in that 30-40% range, like amazon and many others, typically their caps aren't more than say 4 times their annual gross revenue.

A weed company with annual sales of $40M and a COGS at say 60%, should they have a cap much over $160M?

Here we have Canopy, enjoying more like a 60% gross profit but still operating at a loss, with about C$70M annual revenue but with a C$6.17B cap. Really?

With the same sales they have historically maintained a cap of more like less than C$2B

How are they worth 3-4 times as much lately with the same sales they had before? Answer: they aren't.

The "can't ever sell" contest forces us to ride the horse of denial all the way down to where we started, and personally I just don't trade that way. That's why I sold everything.

I posted this silly picture a couple weeks ago and asserted we were somewhere close to "Euphoria" then.

Now I'm saying we're over the top and down the other side, broken through that little landing called "complacency" and on down closer to "why am I getting margin calls?".

Where in the mania market cycle do you see this sector right now?

[PotterBanker]

As a follow up to the mania market post...

Going into recreational legalization, what is that target - July?, I would expect the mania to get going again in May or so?

One never knows of course.

I believe Monday markets will confirm which way this sector is going.

I hope those canadian traders get their mooose on and pour all kinds of fresh money in at these levels and if so I can't wait to go buy stock back on Tuesday. But to be honest I have bet my money (for the most part) against that happening by selling off last Monday. Have not regretted throwing that stock away, while it was still profitable, one bit.