Weed Stocks-Are We Too Late to the Party?

Weed, Pot, Smoke, Blunts, Bongs, Oils, Edibles are all terms affectionately used to describe the use and industry now known as medical marijuana and the soon to be legal Cannabis Industry in Canada.

I don't really care about any of that stuff right now but only the question, "Is now a good time to invest or have I missed the boat?"

Well, in keeping with certain criteria when buying for my Gambling Portfolio , I believe that some of these stocks are ripe for the picking.

Let's look at Aphria (APH)

Current Price: $12.09
52 week high/low: $5.11/$24.75
Avg. volume: 4.4mil
Latest volume spike: 6mil (Friday 8 June/18

About the Company (from Google);

"Aphria Inc., one of Canada's lowest cost producers, produces, supplies and sells medical cannabis. Located in Leamington, Ontario, the greenhouse capital of Canada, Aphria is truly powered by sunlight allowing for the most natural growing conditions available. Aphria is committed to providing pharma-grade medical cannabis, superior patient care while balancing patient economics and returns to shareholders".

Why I Like It Here

It has been as high as $24.75 and is now trading at $12.09. That is a double from here. Can it get that high again? (pardon the pun) good question but why not?

Ok, forget that possibility. Let's just say it reaches up to only within 50% of it's all time 52 week high. The stock would have to get to $18.

On a 4K investment which right now is my purchase limit, that would work out to a profit of;

Purchase: 330 shares @ $12.09 = $3,989.70 + $9.99 commission = $3.999.69 

Sell limit price = $18

Total Profit Potential= $18 X 330= $5,940 - $9.99 commission = $5930.01

$5930.01 - $3999.69 = $1,930.32

Can I really make almost 50% on just one stock purchase? Yes I believe so but you have to have patience. If you can't sleep at night then just sell once your stock goes into the green.

I also strongly believe in buying stocks after they have traded awhile and are then beaten to a pulp. Once they sit there for a bit and start to rise from the bottom I pounce.

Is Aphria a good candidate for that?

This is the essence of speculating and gambling in the stock market. This is what I do with money I can afford to lose and what I always scan the stock tables for. 

It really does take guts to buy stocks when they have lost so much value and significantly off their 52 week highs. This is not for the faint hearted.

Would you rather buy what some newsletter is recommending or some TV talking head is buying? Go ahead but I prefer to just watch what the market is telling me and act accordingly based on price, volume and the stock's position based on it's 52 week high/low.

Now that APH is moving back up in price and volume it is worth a look. This also indicates to me that the market is interested and behaviour is changing.

Does this mean that APH is getting poised to rocket higher or setting us up for a false head fake type move down? 

The market will tell you if you're willing to listen.

Remember the 'Loss Rule' and sell if the stock loses 10% after you buy it. If the stock dropped to $10.85 after I bought it I would have to sell so I don't get too burnt by the market. Preserve your capital and don't get too greedy. If it continues to show strength on Monday, I'll be a buyer.

Watch List

FIRE

ACB

MUX

KAT

BXE

LTV
NMX
APH

What's on your watchlist?

Happy Trading!