26 Comments

  1. Heads up: You mentioned ACB.TO didn't perform as well as ACB did on the charts, therefore, there is a ? on ACB.TO strength/performance versus the US listing. The reason for the lack of CDN performance is currency related only. The CDN dollar had a large rally on Friday and the price of ACB.TO is tied to the exchange rate between currencies. Therefore, you should be looking at the US chart and not rely on the CDN chart going forward as currency is distorting your analysis. Try to look at other multi-listed stocks in the same way. In the past, you have used volume as your determinator and it doesn't work when US listings gain strength in volume too. So you should know that the US price times cash US/CDN dollar equals the CDN price. Forget the CDN chart.

  2. Holding HEXO to 8.50+ :] Took profit of half position. Stop 5.74. If daily low reaches 5.41 will reenter with larger position with tight stop. If HEXO breaks 5.41 then 5.20 will look to buy but right now the bulls are powering HEXO probably way over 6 if we break 5.99 on Monday witch it has a very good chance of doing and consolidation may be at higher levels than mid fives after that. Jan earnings in some BIG names could be what they are waiting for? ACB and WEED should report astronomical earnings compared to last quarter and still the next quarter after this one will be even higher so perhaps the catalyst required to break out for this tightening range. And why they are not running with the mid caps also? But I do agree with your analogy also in this short term. The risk reward is positive for some of these mid caps as there earnings also should be good only they are running up fixing price in before it happens compared to the Large caps. Plus momentum of a break out in the large cap stocks after earnings will carry the whole sector up a little more mid caps especially, but after after the mid caps report there earnings as they will compare to large caps and the psychology until Q2 will focus on valuations of were the mid caps ran to and then see some pull back after that for the names that were not close to the large caps earnings. For the midcaps that report close to or higher than ACB or WEED for instance they will continue to rally and become the next large caps to add to the list? OCG and HEXO could very well become those names to emerge into a large cap designation down the road mid term in my opinion. Dan i so very much value your clips each and every day thankyou. Bought some PAT:TSXV the other day also. Might have another one or two great days left in it?? Or longer term on contract. Again thanks

  3. Hey Dan, What bands do you enjoy? I mostly listen to the greatest band in the world (Clutch, obviously).

    I see some comments looking for TGOD recently, and I'd love to see it come up a little more as well. 😉

    Thanks for all the amazing content!

  4. Thanks again for your excellent analysis, Dan. I continue to benefit from your insights, and feel the $99/month spent on The Chart Guys membership is the best money I've spent on investment research.

  5. Thanks Dan, made my own list of equilibrium patterns and look forward to comparing with yours.  I've watched all your videos for a year now and I still learn new things every week.  Really appreciate you taking time to share.  That really is a good thing.

  6. I wonder if you going to talk about Crop Infrastructure one day , good company on my opinion. Probably too small and too early to talk . But thx for your videos ! You didn't say anything about trade war cooling down , employment rate going up , oil going back up , lots of good indicators , still kinda on the bull side but should be good 2019 ..

  7. Hey Dan. Great insight, as usual. I would like to add some thoughts aimed more at the fundamentals. In my opinion we have three tiers of Canadian MJ. The top five, the middle three, then everyone else. HEXO, OGI, TRST are all low cost producers, have solid financials, good inventory, and will have over 100 000kg capacity very soon. I would definitely rate them ahead of everyone except the top five. In fact, looking at facilities, they are not far behind CRON, if at all.
     
    IMO, these middle three companies can justify their valuations better than other cannabis companies and that includes the big five, with the exception of CGC. When rec sales start showing on the income statement these middle three companies are going to show excellent numbers. I can also tell you that all three of these companies have product that is FAR better than ACB and APHA—I have yet to try something from CRON or TLRY.

    I wouldn't be surprised to see these middle three companies double in valuation over the mid term.

  8. Check out Wildflower Brands for a high-risk, high-reward but very unknown U.S. marijuana play focused on CBD (with a tight float). Their business model is all about consumer products, which is where the margins are. It is on its way to becoming an early leader with established distribution channels and excellent products. As Dan mentioned, with U.S. companies likely outperforming their Canadian counterparts, Wildflower should do very well in 2019 IMO.

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