Weed Stocks in a Bear Market: Trouble Ahead?
Weed Stocks in a Bear Market: Trouble Ahead?
#WeedStocks were the cat’s meow until they weren’t. Along with all growth stocks, #CannabisStocks have hit the skids harder than Pete Dougherty on any given Tuesday night falling an average of 50% year-to-date. They seem fairly valued, so is this a prime time for cannabis investors to back up the truck? Maybe, but we need to consider that #cannabis consumers are price sensitive and likely to return to the black market for better deals when time gets tough. Cannabis stocks may not prove to be as resilient as other sin stocks if consumers are as price sensitive as we believe them to be. Some may go back to their old habits and start buying on the black market. Cannabis legalization means it’s now much easier to drive around with an ounce of weed you just bought on the black market stored in a container from a legitimate dispensary. The police don’t know where you bought that chronic. Cannabis is becoming more socially acceptable, and the black market is doing better than ever. Investors should watch for gross margin compression and falling same-store sales which will show that indeed consumers are becoming more price sensitive as times get tougher.
RESEARCH PIECES USED IN THIS VIDEO:
1. How Will Weed Stocks Handle a Bear Market?
https://www.nanalyze.com/2022/07/weed-stocks-bear-market/
2. Focusing on Vertical Integration in the Cannabis Industry
https://www.nanalyze.com/2022/02/vertical-integration-cannabis-industry/
3. The Best Marijuana Strain Ever Grown
https://www.nanalyze.com/2019/04/best-marijuana-strain-ever/
4. Trulieve Stock: The Good, The Bad, and The Ugly
https://www.nanalyze.com/2021/12/trulieve-stock-good-bad/
5. How Long Will the Current Bear Market Last?
https://www.nanalyze.com/2022/06/how-long-bear-market/
CHAPTERS:
00:00 Intro
00:42 The benefits of sin stocks
01:25 Brand loyalty in vices
02:37 Price sensitivity in cannabis
04:23 RSO: the edibles substitute example
06:27 The black market threat
10:21 Key takeaways
11:41 Weed stocks are cheaply valued
13:01 Conclusion
ABOUT US:
This video is brought to you by Nanalyze, a boutique media and research firm founded by finance professionals with decades of experience. We share insights about #DisruptiveTechnology #stocks in a language that is future-proof and easy to understand.
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#WeedStocksinaBearMarket #nanalyze
Thanks for covering cannabis. I’m not sure it’s the right time yet, but maybe sometime this year or early next year would be a good time to invest in cannabis.
I for one, very interested in VFF(Village Farms International). For I love both PSF and Rose products very much, very good quality in general. But the numbers are not there yet…
I was riding house money in 3 weed stocks but being aware of succumbing to house money effect I cut 2 loose and put the funds into a value growth genetics testing stock called flgt
I now only own planet13
Hello Nanalyze ,
Any possibility of doing a analysis on the
Psychedelic stocks ?
Atai ( backed by Peter Thiel ) , compass ,
Cybin , & Mindmed.
Would be interested to hear your thoughts 💭
I tried their 20 to 1: CBD to Txx .. syringe distillate took orally. Very good, but my store no carries it. And cannot find it on websites locally. envigorating…good for day use.
This is rather intimate knowledge of the intricacies here. I’m saying nothing. 😁
Thanks for so so much awareness.
You have got to see High Tide ($HITI). Fantastic fundamentals and stunning/consistent quarter on quarter growth now for three years plus. This is what an income trajectory should look like but the net income hasn’t gone in the right direction and given your recent weed content I can really now better grasp.
If weed stocks pick up momentum from policy tailwinds the market can irrationally drive them up all up regardless of fundamentals.
Problem is until legislation companies can’t get funding
Great analysis again Joe !
Risky sector , but I’ve bought some Tilray due to the very price , but primarily the management, CEO seems to very sharp ,acquiring large stage in Hexo & Medmen via convertible notes
I also added significantly to Cresco Labs
Since they are the house of brands & they money selling at other companies dispensaries.
Thanks again 🙏
Still 👀 looking forward to your article on
Caribou
👍👍👍👍