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(03-18-2019, 05:35 AM)rayray Wrote: (03-15-2019, 11:29 AM)divmenow Wrote: I don't see any buys in this market so I went 40% cash today and will wait for a 10-12% correction to put my money back to work. In the meantime I did purchase a 1 year CD that pays out 3.15%. I have been one of the most positive people in this market, but I have learned don't chase stocks and it wont bite me again like its has in the past. And right now I feel to buy anything right now would be chasing. And with the way most companies earnings have looked of late these stock prices will have to come down to justify the slowdown. Market is up based on what Trump will do and the tariffs. To me this has already been priced into the market on what will be done. What happens if a deal isn't made?
I bought CVS, V, BTI, PM, JNJ, HD, GILD, WBA, D, DUK, and some other names in the past few months, so I'm happy with my latest purchases. Until a better opportunity comes along I will wait patiently.
Out of curiosity, when you said you went 40% cash does that mean you sold 40% of your securities?
That is correct. I sold about 18 stocks and will keep the cash until I see better buying opportunities come along. The rest I put into a CD for 3 years. SO right now I’m 60% stocks, 40% cash and 10% bonds and Cd’s. This is first time in like 5 years I have had more then 25% cash on hand.
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03-18-2019, 03:14 PM
(This post was last modified: 03-18-2019, 04:00 PM by fenders53.)
(03-18-2019, 03:03 PM)divmenow Wrote: (03-18-2019, 05:35 AM)rayray Wrote: (03-15-2019, 11:29 AM)divmenow Wrote: I don't see any buys in this market so I went 40% cash today and will wait for a 10-12% correction to put my money back to work. In the meantime I did purchase a 1 year CD that pays out 3.15%. I have been one of the most positive people in this market, but I have learned don't chase stocks and it wont bite me again like its has in the past. And right now I feel to buy anything right now would be chasing. And with the way most companies earnings have looked of late these stock prices will have to come down to justify the slowdown. Market is up based on what Trump will do and the tariffs. To me this has already been priced into the market on what will be done. What happens if a deal isn't made?
I bought CVS, V, BTI, PM, JNJ, HD, GILD, WBA, D, DUK, and some other names in the past few months, so I'm happy with my latest purchases. Until a better opportunity comes along I will wait patiently.
Out of curiosity, when you said you went 40% cash does that mean you sold 40% of your securities?
That is correct. I sold about 18 stocks and will keep the cash until I see better buying opportunities come along. The rest I put into a CD for 3 years. SO right now I’m 60% stocks, 40% cash and 10% bonds and Cd’s. This is first time in like 5 years I have had more then 25% cash on hand.
That's a big move. Would you mind sharing the tickers you cashed out of?
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03-18-2019, 03:22 PM
(This post was last modified: 03-18-2019, 03:24 PM by divmenow.)
I bought a few cannabis stocks today to go along with my IIPR holding. I have done so well with that name I wanted to add to my exposure in that industry. Right now I'm up 55 points on IIPR lol. I have done about 7 weeks of research and narrowed it down to 2 names I really like long term.
CTST and VFF. Now none don't pay a dividend but the upside alone was worth the gamble.
VFF - Is so far ahead of the competition. It will take years to build a highly competent workforce. Just amazing they turned a profit this quarter already while converting their greenhouses.. They have got to be the envy of the rest of the industry, and I bet they have many running scared. Those that spent huge amounts to do indoor growing and to build greenhouses from the ground up are quickly running out of time.. many will probably never do more than recoup their investment at best.
Village Farms focus on simply growing and selling wholesale makes perfect sense. Canopy's Bruce Linton recognized this months ago when he said that they need to move upstream into higher margin aspects of the industry and that he would like to get completely out of growing.. That's fine with VFF who will be one of the few left standing after the industry shakeout that's coming down the road.
This stock is just getting started. I wouldn't be surprised if it reached $30+ by Sept.
CTST - CannTrust is in a terrific position for growth and is doing so in a fiscally responsible manner- they've already grabbed a health share of the medical MJ market and when they develop CBD-infused beverages CannTruust will be among the most attractive MJ plays out there. I have tried many CBD capsules and drops over the past 6 months and to me these are the most effective in the industry especially with my neck and back pain. Stock went from the pink sheets to now trading on NYSE. A great accomplishment. CEO has bought the stock this month on 3 occasions.
Just curious if anyone else owns any names in the cannabis industry?
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I have no idea which of the many competing start-ups in the cannabis industry will ultimately survive and succeed. These are wild-west days, like investing in internet stocks in the late 90s. I suspect BTI, MO, and PM will be major players in the space with substantial market share once it has been legalized at the federal level in the U.S. They have every incentive to do so, and the cash flow and credit ratings to make it happen through acquisitions or brute force.
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Nor do I. In the end, growing isn't overly complicated and weed will become a commodity. In the meantime there will be plenty of momo plays.
I also bought my first MJ stock, ACB about 2 months ago. No dividend here either. I am up 49% so far. I also bought MO about the same time and am up 27%. I am interested in VFF and HEXO but this is a crap shoot. These stocks will remain very volatile over the coming years until they shake out. I am making small buys here, about $500 per buy. Trying to layer into about 3K purchase price of MJ with the likely eventual adoption in the US in the next 5-10 years which should make these early buys rocket. Get ready for a bumpy ride. Turbulence ahead!
BLTN
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fenders and divmenow thank you for the responses
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Bought some VFF in the pre-market after reading up on it. It's the only profitable cannabis stock in the market right now. I like the fact this company has been around for 30 years and the fact the CEO has been there since 1987 says lot. I'm not going to go crazy over this sector. But I wanted to have some exposure to the industry.
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Finally picked up some Ute shares today. Very small positions in AEP- D-WEC-SO and XEL. They are all currently overpriced by 5% IMO, and paying too much for slow growing Utes rarely pays off in the short-term. Bought the shares with profits from all the puts I sold that expired worthless while trying to be forced go to long since AUG18. Yeah, I would have been a little better off just going long then, but I couldn't predict UTEs would run higher in the face of the FED tightening. That isn't normal. The put sales will continue and sometime soon I'll finish these positions out quite suddenly. Who knows when.
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(03-19-2019, 10:16 AM)fenders53 Wrote: Finally picked up some Ute shares today. Very small positions in AEP- D-WEC-SO and XEL. They are all currently overpriced by 5% IMO, and paying too much for slow growing Utes rarely pays off in the short-term. Bought the shares with profits from all the puts I sold that expired worthless while trying to be forced go to long since AUG18. Yeah, I would have been a little better off just going long then, but I couldn't predict UTEs would run higher in the face of the FED tightening. That isn't normal. The put sales will continue and sometime soon I'll finish these positions out quite suddenly. Who knows when.
Utilities are over valued right now. Most are trading at high valuations and dividend yields compared to there norm. They need to come down another 15% or so before I will add new money. I bought a lot of those names in Nov-Dec of last year.
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(03-19-2019, 02:51 PM)stockguru Wrote: (03-19-2019, 10:16 AM)fenders53 Wrote: Finally picked up some Ute shares today. Very small positions in AEP- D-WEC-SO and XEL. They are all currently overpriced by 5% IMO, and paying too much for slow growing Utes rarely pays off in the short-term. Bought the shares with profits from all the puts I sold that expired worthless while trying to be forced go to long since AUG18. Yeah, I would have been a little better off just going long then, but I couldn't predict UTEs would run higher in the face of the FED tightening. That isn't normal. The put sales will continue and sometime soon I'll finish these positions out quite suddenly. Who knows when.
Utilities are over valued right now. Most are trading at high valuations and dividend yields compared to there norm. They need to come down another 15% or so before I will add new money. I bought a lot of those names in Nov-Dec of last year.
During the same time I sold and collected put contract money on every one of them, month after month. In the end, a different method to the about the same place. (I really need to get out the calculator).
Anyway, I own at least 25 shares in all of the above listed Utes now. You are right they are overvalued, and it could be many months before they pull back enough to buy large positions, which is very much my intent. They look like they are finally running out of gas lately.
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