How is marijuana stock sold on the stock market?

 

Buy high … sell higher.

 

marijuana stocks

BANG! Welcome to the second half of 2019.

Intermission is now over … I hope you’re enjoying the popcorn and red licorice because now it’s back to work!

And this week I’m taking a change back – yes, today I speak to the numbers’ nerds – from the art of music … to the science of investing and personal money management.

It would be easy to reverse that last sentence to say the science of music and the art of investing and personal money management. There is a bit of alchemy in there when you think about it closely.

So … how were your first 6 months of 2019? I mean financially.

Are you looking richer or poorer today than where you were when you were watching the Rose Bowl and Disney parades on January 1? I hope at least that your champagne headache has receded.

Let’s dig in here. Money is important in all our lives.

We all need shelter. We all need food. We all need Netflix… OK nix that last one …

The investment start to 2019 has been a refreshing change from the doldrums of 2018. And it’s extraordinarily amazing given that 2019 is becoming the Year Of The Tariff.

The U.S. (ie. Trump) vs E.O.E (EveryOne Else) – except Russia and North Korea – has become an economic World War III.

Every little whiff of tariff (and there are huge flatulently wafty whiffs out there) in the breeze sends a Freddie Kruger fear of financial oblivion throughout the world.

That’s what’s called the macro look …  but most of us are way more interested in the microscope take on our own treasure chests.

treasure chest

HEADLINES and highlights

If you bought a van-full of BEYOND MEAT shares in 2019 (I stayed well away from this helium balloon of swelling revenues but inert profits), you now own a non-meaty 18-Wheeler-full of $$ booty and a one-way ticket to Animal-Friendly heaven.

I shake your hand in Vegas-style “lucky” admiration.

Who said money couldn’t buy happiness for a cow or chicken?

But to be a yellow pea? ARMAGGEDON!

Next: If you made a similar altruistic purchase of LYFT shares, the ride-sharing company that drove away with investor money after listing at $72/share and have since dropped a bit more than 10%, well … patience is your best bet as you wait for the next UBER ride my friend.

And of course, there is huge interest and anticipation of the smoke-and-oil POT stocks. Marijuana is becoming legally legit more broadly with each passing month. The acrid reefer scent has become more common than the stench of day-after beer sweat.

All the major players in alcohol and tobacco are gobbling up weedy chunks to keep their interest in intoxication at sky-high levels. Marijuana is going to soar for years to come, but for investors, sticking out your thumb for a ride and hoping that none of these companies are financial serial killers is a big challenge.

This isn’t an area where I can guess the winners with any aplomb, so I think I might be more interested in those others who fly high resulting from pot sales: like takeout pizza (Dominos), chocolate (Hersheys) and potato chip makers (Pepsico).

munchies

Of course I also have some of my own favourites (Disclosure: I own each of these in my own account) that aren’t crazy expensive (relative to their earnings) like Apple, Penske Automotive, Great-West Life, Bank of Nova Scotia, CVS Health, Whirlpool, FedEx, Enbridge, Magna International. All great companies with a sweet kiss of dividends.

Alas, in today’s blog, I’m not making any personal BUY recommendations because quality companies – in BIGLY numbers – are out there… but the share prices for purchasing this quality have swollen just a bit too large to make a BUY and then hope to make a healthy return over the short-to-medium term.

And finally, keeping my toes to the fire … *drum roll* … my own investment return so far this year to the end of June comes to +12.9%.  This is actually lower than the returns of both the TSX 60 (+15.0%) in Canada and the Dow Jones Composite in the US (+14.8%), but of course, higher than the best Canadian 5-year GIC rate of 3.25%.

My fingers are crossed that The Year Of The Tariff doesn’t spell disaster over the 2nd six months of 2019… or …

or… I might have to make a MAJOR purchase from a Marijuana company … nope, not the shares… the product!

Willie w pot