Just a short post documenting my most recent foray into the weed space. I have mentioned on a lot of previous posts NOT to get into any weed stocks. That has changed like all contrarians and speculators would attest to.
This is not for retirement money but for gambling money if you have any and can afford to lose it, That's why I call myself the stock market speculator.
The whole sector is oversold. Which ones to pick.
You can just buy the HMMJ ETF if you want but I would rather try and pick individual companies I think are way overdone.
I added to my position in TGOD and initiated a new position in HEXO.
I now have $10K invested in the weed space. Was today a good day to buy? HEXO went up and TGOD went down. Kinda like my PF most days and I believe just about anytime I decide to buy a stock. Get used to it, stocks go up and then down even on days you jump in.
I have mentioned before about buying in the valleys and not when stocks have reached the top of the mountain. I believe these weed stocks are in a pretty wide valley right now and I'm hoping they don't go to hell.
If they dive 20% from my buy price I'll sell. I have no desire to become a bag holder. Take a loss if necessary and move on.
HEXO
The stock closed up on the day at $2.93 on above average volume. It has a 52 week high of $11.29. That is a great upside potential right there and what I look for in a speculative gamble.
I also like the fact it has a joint venture with Molson Coors to provide cannabis infused beverages.
TGOD
I have jumped in and out of TGOD a few times. If it doesn't get moving soon I will sell at a loss for the first time since owning it to preserve capital. Tomorrow will be a big day in that direction. I have no desire to be a TGOD bag holder. Lots of pumpers out there and specs waiting to dump shares after a slight rise in prices. Tax loss selling is a great time to buy. I like November for that.
TGOD has been as high as $5.81 in the last year. Today it closed @ $0.89
It looks to be finding a bottom between 60-90 cents.
It was down today on heavy volume. This is a pure gamble and it remains to be seen what the demand for organic cannabis products will be. Lots of vegetarians out there who don't buy organic fruits and vegetables. So there's that.
Ontario needs to open more stores where the majority of the population lives.
Lastly these companies need to prove they can make money. Lots will disappear if they don't. I'll be watching closely.
What weed stocks do you like and own if any?
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