investing advice Archives
The Smart Money is Moving In
It’s common knowledge among experienced investors that the price of a company’s stock, at any one time, is imperfectly related to the company’s actual value.
Other factors that affect the price include estimates of the company’s future revenues, earnings profit...
Be Not Afraid
One year ago, soon after marijuana sales became legal in Canada, investors were throwing money at the sector, anxious to get a piece of the action. Today, the opposite is true—getting money for a cannabis business takes real work!
That was my takeaway...
Lots of Crosscurrents!
The good news is that yesterday the U.S. House of Representatives voted in favor of the SAFE Banking Act (the acronym stands for "Secure and Fair Enforcement"), which would shield banks and other financial institutions from being held liable for serving businesses...
It’s been rather frustrating to see cannabis stocks falling day after day, week after week, while the companies’ quarterly reports (with the exception of Canopy Growth) continue to reveal that business is booming. But that’s how the market works.
First, cannabis stocks attracted slew...
Bad News Bears
The stock market in general is quite healthy, with the major indexes at or near their highs, and all Cabot’s market timing indicators positive.
But the cannabis sector is still weak.
Part of this weakness stems from the fact that cannabis was the sector...
They say a picture is worth a thousand words. This picture of the Marijuana Index tells a story that be summed up in fourteen.
From January through March, marijuana stocks were hot.
Since then, they’ve been cooling off.
The reasons for the strength were From...
Fundamentally, the fastest-growing industry in America continues its rapid evolution. Some analysts now estimate that marijuana will be an $80 billion business in few years, while CBD sales will hit $16 billion by 2025.
It’s hard to know. But one big step comes tomorrow the...
I didn’t go to business school; I was an English major. But the values learned in our household were firmly grounded in free market capitalism and investing. Sunday mornings, after going to church, we would stop at the local newsstand to buy and...
Strength and Rotation
Sometimes investing is easy; sometimes it’s difficult. 2019 has been a piece of cake, so far, especially for investors in marijuana stocks.
While the S&P 500 is up 11.1%, year-to-date, the Marijuana Index is up 40.0%, and our own Marijuana Portfolio is 44.4%....
The End of a Big Year
If you were investing a couple of decades ago, at the height of the dot.com boom, you no doubt remember stocks like Pets.com, Earthlink.com, Homestore.com, E Greetings Network, Chinadotcom Corp, Juno Online, Women.com Networks, Rare Medium Group, Drkoop.com, Jeeves,...
Is the Correction Over? Part 2
The good news is that the cannabis industry in North America is booming. Legal recreational sales in Canada are very healthy, with the only problem being a supply shortage—which will be alleviated in the months ahead. And legal continues...
Ten years ago, these two Cabot market timing indicators saved our subscribers from losing their shirt in the financial crisis. Here's how they work.