How do you guys believe the overall Canabis market will perform in the short term and long term? Just looking at the recent and historical performance of the stocks CGC-Canopy Growth Corp and CRON-Cronos Group Inc. it is clear that these stocks are in early stages and are quite volatile. Maybe swing and day trading are better options on these stocks then the long term run, but would a small investment long term for these stocks be a bad idea? I believe that CGC is a better long term option especially with all the great news rep it has recieved and with the CEO talking about his plans to be the next "Google or Apple of the Canabis market." What opinions are there of this stock?
A couple weeks ago I posted CGC in the "What stocks are you eyeballing this weekend" thread. I agree that both CGC and CRON are in the early stages and at this time are quite volatile. That sustained volatility on and after the recent signs of strength is not good for entry at present. It shows there is a lot of public ownership that has come into these markets. The public needs to be shaken out I believe before the big boys will let it mark up again. The boyz need to take ownership and lock the shares back into their boxes to limit the supply of stock available for trading...less supply >>> higher prices. Between the two, it appears CGC is the leader. CRON was not able to break out of its 9-month-old trading range whereas CGC did and is holding the highs much better. But as I said, for both of them, I'd like to see the volume (supply of stock available for trading) and the volatility diminish. For CGC my point and figure projection is $91 based on the past 9 months of cause building. CGC Daily:
Looks like the smart guys ran it up pre-market and sold into it. Today's range established in the opening 30 minutes or so, is $7.89 or 13.95%. The volume was very heavy...appears to have trapped lots of late-to-the-party bulls.
The Point and Figure count gives a target of $91 but it looks like it wants to work this stepping-stone range some more. After a second attempt and failure to take out the high, the volume increased on today's drop. The breakout out of the base range appears to have significantly brought in the public judging by the heavy volume and volatility in this stepping-stone range, enough of the public so as to cause the smart money to take profits. To get to $91 the smart money has to shake 'em out to eliminate the pre-mature sellers. I'd like to see it come into the $40 area and have the supply of sellers (judged by the trading volume) dry up.
