The action in cannabis stocks over the last week or so has been nothing short of spectacular. Looks to me like it might be the new mania sector and for others like me who like popcorn and are fascinated by wild market behavior, I've tried to put together a bit of a watch list for this emerging "Medical Marijuana Sector" So far I have got :- AC8 MMJ MXC ZLD CPH QBL SCU Any others that people know about?
Indeed. But smoke and mirrors is still fascinating, no? My favorite in this batch is QBL. Queensland Bauxite mining company....jumping on the new sector bandwagon early. Though SCU and their 5000% share price increase in 1 day was also pretty awesome. Based on....ummm....some kind of announcement.
This was the guts of the SCU announcement :- Enough to kick off a 5000% increase in share price? Yehhhh....nahhh...
Do you see any LT investment on this, Mr Bugged? Or 1-2yrs terms? Considering cannabis industry is huge in Billions $ plus with aust goverment support and other country to legalise it (canada).
Yeh, I kinda do but I'm not able to pick a winner if that's what you're asking. This kind of thing is going to be dependent on licensing, government and medical approvals, legislative change....there is a lot of scope for insiders to make a killing and I am sure there will be big winners and big losers. I'll do more research into it and maybe I'll get more confident once the sector matures a bit and some of the early hurdles have been cleared but for now it's just watch and learn and maybe trade a little bit on technical analysis and sentiment. Good luck to anyone having a dabble in this space. You're going to need some! :lol:
I took a nibble of SCU today at 0.17 just as a gamble after 85% retracement. I also noted that AC8 has a formal Liberal MP on the board and considering the hurdles in this sector I reckon that'll be a competitive advantage
Well done Bugged. I dipped in MXC today. Not sure in short term if the SP will go to CR price. I like SI support to the company and $10m in the bank.
A new one for the list today ZYB. I am stunned and amazed at how these companies are operating. Some vague announcement relating to cannabis is all it's taking to attract the mania. It looks like blatant insider trading and SP manipulation to me. ZYB is a tech company developing some cr@ppy phone app, but they share a board member with MMJ who is an early mover in the cannabis space, so the announcement of them looking into opportunities of the cannabis sector is all it takes to spark a rally. It will be interesting to see if it takes off like SCU and QBL did on similarly light substance. I'm tempted to put my SCU trading profits on it tomorrow but will probably just watch in continued amazement. Surely this cynical tapping of cannabis market hype is going to run out of puff soon?
Although there are some legitimate start ups in amongst them that are vying for first to market advantage. This will provide plenty of opportunity for the smart investor, the problem is sorting the rubbish from the reality.
