SO…. WHY ARE MARIJUANA STOCKS DIVING….INSTEAD OF CLIMBING???
by nexxess | April 17, 2017 5:20 pm
SO I’VE BOUGHT INTO THE FACT THAT POT STOCKS WOULD BE GREAT…. ONLY TO SEE MY ACCOUNT VALUE DOWN BY 30%.
SOMEONE PLEASE ENLIGHTEN ME???
Source URL: https://www.stockgumshoe.com/2017/04/microblog-so-why-are-marijuana-stocks-diving-instead-of-climbing/
According to an article in Marijuana Business Magazine , March 2017 : Marijuana Stock Gains in 2016 were 400%. They used 12 stocks in the chart : AMMJ, AXIM, CANN, CBDS, CNAB, CVIS, KSHB, MSRT, SRNA, TRTC, VAPE, XXII.
I’ve never bought into them because the ones I’ve looked at don’t have real financials that support their valuation — most pot stocks, if not all, trade purely on sentiment and expectations. That might work out for a few of the best ones in the end, we still don’t really know what the marijuana marketplace will look like and it’s clearly risky, but most of them probably won’t be around in five years.
As long as these stocks are trading almost purely on sentiment, they’ll be subject to big swings whenever sentiment shifts even a little bit. That’s the underlying issue that keeps me from trying to choose pot winners, though I know many folks have had huge gains on the runs a lot of these little fellas have made in both the current manic market and in previous “legalization” bull markets.