MMJ Phytotech (ASX:MMJ)

Discussion in 'Stocks & Derivatives' started by smk762, Jan 22, 2015.

  1. smk762

    smk762 Active Member Silver Stacker

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  2. smk762

    smk762 Active Member Silver Stacker

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    Well well. 110% increase on day one based on IPO price of 0.200.

    [​IMG]

    I got in at the market open price of 0.320. Ended the day at 0.420.

    Still a nice 30% return during the 2 hours it was trading. :D
     
  3. silver kook

    silver kook Active Member

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    Why did I buy Medibank? This is the Health Sector share of the year!
     
  4. smk762

    smk762 Active Member Silver Stacker

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    It's not everyday you get a chance to get in on an industry in it's infancy with massive growth potential with new markets set to open regularly over the next few years. This one should jump every time another state or country recognises the therapeutic (and taxation) value of medicinal cannabis.

    [​IMG]
     
  5. finicky

    finicky Well-Known Member Silver Stacker

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    When will it be profitable?
     
  6. smk762

    smk762 Active Member Silver Stacker

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    The prospectus puts last P&L at about half a mil in the red, 90% of which was consulting fees preparing and underwriting the IPO. IPO was oversubscribed almost a mil, so that's covered.

    Can't say when sales start rolling in, but they've secured a bigger war chest than expected to use on the next phase. Just hope the directors aren't the type to get high on their own supply.
    Cove Resources were a gold exploration mob which didn't pan out when spot slumped mid 2013.

    Another upside while the $AUD is low and the laws still being worked out, is that international sales will benefit from the exchange rate, especially US based trade.

    Having the Yissum Research Development Company of the Hebrew University involved can't hurt either.
     
  7. serge83

    serge83 New Member

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    Been watching this one today. Nice pick up! Bleeding I didn't get in on it.
     
  8. Scyb

    Scyb Member Silver Stacker

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    Well done SmK!
     
  9. SilverDJ

    SilverDJ Well-Known Member

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    Now up to 0.775, but hit $0.92 wow!
     
  10. smk762

    smk762 Active Member Silver Stacker

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    This is unbelievable. Am I high?

    Saw it touching 0.90 over my morning coffee and I've been smiling like a stoner ever since. Tempted to cash in some but way more buyers lined up than sellers at the moment. Waiting for it to breach $1 and I'll redeem 25% of my stash.
     
  11. silver kook

    silver kook Active Member

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    Still up 88 per cent today at the time of this post.
     
  12. Roswell Crash Survivor

    Roswell Crash Survivor Well-Known Member Silver Stacker

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    Talk about companies with high exposure to legislative/political risk factors...
     
  13. phrenzy

    phrenzy In Memoriam - July 2017 Silver Stacker

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    That's true. Even if the TGA allows cannabis derived drugs to come to market en mass there are plenty of established businesses overseas that can grow and refine the chemicals to a finished drug product thereby avoiding legal loopholes. Theres a few big businesses in Israel and Britain in this space.

    No reason they couldn't be very successful but it is definitely dependant on how successful the liason between the company and the bureaucracy.
     
  14. smk762

    smk762 Active Member Silver Stacker

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    Heroin derived from opium is illegal, but codeine and morphine are not, and there is no stigma with using the latter for legitimate purposes. Australia seems to have managed to figure out how to regulate and profit from opium, I fail to see why they wouldn't be able to manage to do the same with cannabis.

    While a complete repeal of prohibition internationally is not likely in the near future, medicinal use is rapidly becoming acceptable. In the past it was so restricted that scientific studies (unless they supported the prohibition) and medical trials were not allowed. Now that it is being conducted seriously and supporting data is becoming available, pressure on legislators is increasing. There are a few miracle stories out there (Google "Charlotte's web"), and cancer is prevalent enough for even those who oppose to hear about beneficial experiences from people they know and trust. Public perception is changing at a reasonable pace.

    All politicians need to do is figure out how to regulate it enough to not lose votes from overly-conservative citizens, how to tax it without appearing to only be in it for the money, and how to allow access to those in need quickly enough not to seem heartless.

    IMO the risk of legislative/political factors is not an issue. Those who grew up in the Reefer Madness era are not long for this earth, and increasingly likely to have one of the conditions that it can be used to treat. Those in subsequent generations have generally had enough experience either personally or within social groups to realise that cannabis is not as dangerous as heroin. Politically cannabis was already as demonised as possible, and day by day this is shifting towards acceptance, or at least tolerance. It moves more slowly in some parts than others, but the direction is sideways at worst, pro at best, and I'm not aware of any increase in anti sentiment or legislation in the recent past. Medical use aside, decriminalisation has been enacted or trialed more often than punitive measures have been increased.

    You could even go as far as to say that there is a political/legislative reward in the pipeline. The US states who have joined the party are enjoying enough tax revenue to make failing European economies take notice, and law enforcement budgets also benefit, allowing them to focus on the far more destructive scourge of amphetamine use.

    There is a certain hypocrisy in allowing cigarettes and alcohol, which contribute to cancer, while denying access to therapeutic cannabis. Politically this disconnect will need to be addressed, and I can't see any politician getting away with banning booze and smokes (taxing them out of existence is another story).

    Right now the Telecomunications Industry has a higher exposure to legislative/political risk factors (NBN levy anyone?).

    I'll bet 10oz silver that by 2020, cannabis will be an ETF commodity. When that happens, I'll start a forum called StonerStackers where people can discuss the pros and cons of paper vs physical weed.

    Phytotech have a relationship with Yissim in Israel who are growing, refining, and permitted to export medicinal grade cannabis. One of their directors has been involved in the medicinal cannabis movement in Israel since 1994.
     
  15. serge83

    serge83 New Member

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    Ross Smith, founder and executive director resigned today. Might see a further drop in the price....
     
  16. smk762

    smk762 Active Member Silver Stacker

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    https://au.news.yahoo.com/thewest/a/26174213/smith-resigns-from-pot-firms-board/

    TBH of all the directors he was the one I had some reservations about, seemed a bit of a strange fella. Just check out the pic at the top of this thread...

    Good to have his antics out of the way quickly. They're probably better off without him being a possibility of bringing that kind of bad press, and can now get down to business without him.
     
  17. serge83

    serge83 New Member

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    Yeah I read about the tractor incident. Interesting guy. Been watching closely having missed the boat initially deciding on an entry price. Still unsure though. Been alot of talk in the papers about medical marijuana so things are looking positive.
     
  18. smk762

    smk762 Active Member Silver Stacker

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    Kinda regret not cashing in a quarter when it was 80+, but at the mo I'm looking for a sign to double down. This could be it?
     
  19. serge83

    serge83 New Member

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    Dropped 11.5% today to $0.42. I'm hanging out for sub $0.40. I think it will get there maybe even $0.35.
     
  20. serge83

    serge83 New Member

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    Well didn't expect it to freefall the way it has. Dipped down to $0.33 briefly and currently $0.35. Two days of sharp drops have me a little spooked. Or is it the perfect time to get in? Still can't help but feel there might be a bit more to fall though..
     

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