Horizons Marijuana Life Sciences Index E

Discussion in 'Canadian Stocks Message Boards' started by spooks, Dec 29, 2017.

  1. spooks

    spooks New Member

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    Hello all,

    Anyone following this tracker?
    (CA44054J1012, Horizons Marijuana life sciences index E)

    The first marijuana based tracker.
    I noticed that the last few days there was an extreme increase in volume.
    Is there a specific reason for this increase, seems a bit strange.
     
  2. shellybear

    shellybear Member

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    I would think it has to do with the huge move these MJ stocks have had in the past 6 months.... some of the major players have market caps north of a billion $$$.... however, very few have huge revenues with profits. Very overvalued sector based on fundamentals, P/E , cash flow , .etc.....
     
  3. spooks

    spooks New Member

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    Overpriced?
    Do you not think that they are still valued at a low price?
    Some are indeed getting expensive, but the market itself is only at the start so how would that be overpriced?

    And what would you give as the explanation for the huge move then?
     
  4. shellybear

    shellybear Member

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    Several stocks in the sector had big moves in the muted trading in December... will see how they fare in January.... it is indeed a hot sector.
    So may see some more upside, and in that regard perhaps they are not over priced. BUT any fundamental value metric you can come up with.. they are over priced. This IS NOT looking at charts or market sentiment , but purely revenue /cashflow number crunching.
    Many of the top plays in the MJ/hemp sector have negative P/E and precious few have positive cashflow.
     
  5. shellybear

    shellybear Member

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    Its looking like a serious correction happening in the POT/Hemp arena, and indeed many of these stocks were up 500% and more in the past 6 months or so. A 20 % pullback doesnt even hardly touch the profits many early investors have in these stocks. I think in the year ahead the best money to be made would be shorting/ buying puts in some of the higher valuation players.
    WEED , for instance had a market cap of over 7 Billion $ in January. That is more than the projected sales of the 2018 MJ in Canada from all sources.....
    Sure sign of a bubble...
     
  6. shellybear

    shellybear Member

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    Here is a look at some of the big names who have dropped in the past week from their highs in January, most are down over 30% in a very short time.
    LEAF Jan high- 31.25 last trade 17.43
    WEED jan high 42 last trade 27.64
    APH Jan high 24.75 last trade 15.48
    ACB Jan high 14.80 last trade 10.22
    CMED Jan High 42 last trade 30
    EMH jan high 9.68 last trade 7.06
    However to put this into proper perspective , most were trading around 40% lower on DEC 1 , 2017 than where they are now. Still more room to drop?
     
    #6 shellybear, Feb 2, 2018
    Last edited: Feb 2, 2018
  7. spooks

    spooks New Member

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    It had a rough ride the last few days but it seems to balance out now and calm down.
     

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