226 Marijuana Stocks: It Is Still Too Early To Buy The Sector – Seeking Alpha

APPENDIX A lists performance measures for N=226 marijuana stocks, contained in my Seeking Alpha equal-weighted portfolio, sorted by market capitalization. The portfolio is down 0.92% for the week ended June 16, 2017, and it is down 1.32% for the 4 weeks ended June 16, 2017. The relatively large or big cap marijuana stocks are [1] The Scotts Miracle-Gro Co., [2] Avnet, Inc. and [3] GW Pharmaceuticals, PLC, all trading above $1B in market cap.

My Investing Approach is based on Event Dates and Seasonal Patterns for Micro Caps

If you have been following my work, you know that I like to [1] trade other stocks outside of the marijuana sector and [2] enter the marijuana sector, only, when a sector move to the upside is signaled or warranted. For example:

In this Seeking Alpha article, I suggested that the marijuana rally would end with November 2016 elections, including marijuana stock ballot measures. This did, in fact, represent the marijuana sector peak. It was a good time to sell the marijuana sector.

Recall, also, that it was after the 2016 Presidential Election that the “Trump Rally” began, so a broad-based index fund would have been the best place to “park” economic resources. I did NOT predict the Trump Rally, but it makes sense, in hindsight, since a reduction in corporate tax rates, anticipated at the time of the election, must, necessarily, result in an increase in corporate net income and earnings per share and equity prices. This is simply due to the mechanics of accounting for deferred tax accounts, where you debit deferred tax liability and credit earnings.

In this Seeking Alpha article, I suggested a buy based on tax loss selling or harvesting. This occurs every year, but only for “losers.” It is only mid-June, so it is, now, too

Read More Here...

This entry was posted in Casino Gambling Stocks News. Bookmark the permalink. Follow any comments here with the RSS feed for this post. Trackbacks are closed, but you can post a comment.