Washer’s Weeds 18/2/17
Been a while.
Let’s review the trade:
With the election of Justin Trudeau 15 months ago began a major and potentially long lasting bull market in Canadian Marijuana producers. This thing is just starting with the major catalyst still ahead of us. (Legalization for recreational use).
Washer, being generally lazy and high all the time abandoned his gold stocks for weed stocks and plans to spend the next 5-10 years in this sector.
I watch the top 5 Canadian producers with a good business model and good liquidity. Now I can safely buy and hold, trade or rotate. Nothing fancy required. It’s a bull market after all.
I like my charts naked. Trend. Price. Volume. Have a look: Simplified from the beginning.
It’s a raging bull. Denial is in Egypt. The boat has not been missed. It’s still in port.
There are very few quality producers. The valuations are going to be insane.
Here’s the line up:
CGC: (The leader) has changed symbols to WEED. Brilliant. Probably an MBA. What creative genius. For traders too stoned to remember the fricken’symbol?
APH: Beautiful. (I am too stupid to own any)
OGI: Stabilizing after pesticide contamination scandal.
EMC: Still very new and finding price…the future leader in pharmaceutical dosages.
SL: Been holding heavy. Waiting for sales licence delivery and first revenues from stored product. This has tremendous upside potential. Hoping to make my year right here right now. American chart used for simplicity.
Welcome back.! Nice steady steps up and no worry about geo political stuff to boot! Good volumes. Mother Natures’ Gold. As far as Justina here in Canada slumping on legalities, I think our new opposition leader have a better stance on it than Harper. With buying pot off the streets being deadly as of late,dealers lace it with fetanol and crap now , the only safe buy is from the store or from the back yard.And not to mention that it actually cures a lot of stuff. Maybe shares in potatoe chips also 🙂
Very generous of you to share your insights, Washer. Thx!
Thanks, Washer. Welcome back! I own all 5, thanks to you. Question: will these 5 respond to further American legalization or by AG Sessions’s refraining from enforcing federal law? Or are they strictly Canadian plays?
Thanks in advance.
Every variable has it’s effect. Stateside Federal and State law are contradictory. No such issues in Canada as it is a Federal initiative. Until there is clarity in America the Canadian stocks will carry a huge premium just for being long term viable. The money is coming from everywhere. If America adopts federal legalization Canadian stocks will get hammered as money reverses direction. Unlikely as big Pharma is lobbying against this….don’t get me started.
American issues aside…I am certain that the recreational market in Canada alone is being grossly underestimated. It will take years before the market becomes fully serviceable by legal producers. These 5 companies are going to be very profitable soon.
Washer, are you saying that weed stocks are a bit like Bitcoin in 2010 or thereabouts?
Also do you think Trump will do anything to ‘crack’ the weed bubble that may be coming? Are there any possible legislative changes on the horizon to hinder the process of this bull market?
Tech stocks 1993.
Trump has never rolled a joint in his redneck life. Good for Canadian growers.
Welcome back Kotter
I was 15 back then and smoking like a pig…you?
No I was studying like a pig
Now I am smoking
🙂
Good boy. 🙂