This whole sector is way over inflated. Most of these stocks are up 300% (3x) to 2000% (20X) compared to their price just 6-8 weeks ago in December. Some of them rose up to 4000% (40x) since the end of December and they are still up half of that or more.
Without news the volume will drop and it will be death by a thousand cuts. 1-3% a day or 5-15% a week and it won’t take long to be back in the 0.20’s. In this sector that is historically what happens after the Dec –Feb run and this year it ran more than normal which could result in a lot of these dropping significantly.
I think when the financials are release in Mar/Apr we will see that most of these companies are still losing money. When they release the financials on May 15, we are going to see that there was a lot of dilution and a lot of money spent. It won’t be pretty.
Whether this is the number 1 company in the MJ sector or not will be irrelevant at that point. When the price went up it didn’t matter and when it goes down it won’t. The whole sector moves up and down as one for the most part.
Actually, I am kind of surprised the feeding frenzy/irrational exuberance is wearing off as fast as it is. Look at the volume and the profit takers that have already taken their money out. Those that have been in this sector for a few years have seen it all before.
The last bit of big news for the sector was the DOJ and the banking news of a week ago Friday. People had been waiting for that news since the DOJ said they were backing off prosecuting in the legal states many months ago. Obviously, that did not work out as people had hoped it will.
I don’t think WA will be a bid deal and that may not happen until June or later.
Personally, I don’t see any positive news on the horizon for months. Let’s hope that FITX has some good news prior to June because that is the only thing that I see popping this back up.
Without news it will be a death by a thousand slices like I said earlier.
Look at the longs or long term investors that believe in this company/sector who have taken their profits and gone to the sidelines. They are the smart ones and they are a head of the curve. The cheerleaders will follow but by the time they do the price will have dropped significantly and they will have lost any profits if not part of their initial investment.
Momentum is dying. Look at how few people are posting on these boards now compared to back at the end of Dec or beginning of January. Compare it to just a couple of weeks ago.
Hope I am wrong as I obviously would prefer to continue making money on this sector but I don’t see it happening like it was anytime soon. Especially without news. JMHO
When the irrational exuberance dies, the volume drops, and the price begins to go down it is best to sell and go to the sidelines and buy in later at a cheaper price. IMO
GLTA
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