At the end of the day, it’s all about being as rational as possible. And that’s extremely hard when your stock values are As such, its financial performance is a window into the health of the legal cannabis market. If cannabis products are not selling, neither are all the supplies that support the products. Both of these datapoints are good proxies for continued cannabis sales despite the quarantines across the U.S. and Canada. One other point... GrowGeneration – a multistate “big box” store that sells all the necessary supplies cannabis companies need to grow healthy plants – reported its quarterly earnings on March 27, and they were good. And what about our meds? Pharmacies are seeing a spike in people trying to get larger supplies of their prescription drugs. Besides additional vigilance to get possession of medications, people are asking for 30-day supplies to be extended to 90 days.
FIND LIQUIDITY AND BUY STOCKS No one expected 2019 to be such a difficult year for cannabis investing... And the current market conditions are only adding fuel to the fire. At the end of the day, it’s all about being as rational as possible. And that’s extremely hard when your stock values are plummeting... Although cannabis stocks currently represent some of the most beaten-down investing choices we have, the industry is just getting started... It’s not going away. And sales right now may actually be stronger than we think. Now is the time to do some homework and devote a small portion of your portfolio to cannabis... a really small portion. (These are risky stocks that are very volatile.) As the current market conditions stabilize, these stocks will follow suit. And as the federal government moves incrementally toward legalization, these stocks will soar. As the current market is showing us, it’s impossible to pick the top or bottom. But we can do our research and get positioned for when the bottom finally arrives. Even Ackman and Dalio believe we are getting close.
Most importantly, management felt comfortable providing a full-year sales outlook that was in line with current
expectations. And this is happening well after the COVID-19 outbreak began... Supplies are still selling.
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April 2020
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