If you’ve been following me on Twitter @WolfofweedSt or @MarijuanaStocks you know that we’ve been saying that in order for the #MarijuanaStock run to continue investors need to be savvy & strategic with pulling profits from many companies. This industry, specifically the public markets needs to viewed as a marathon rather than a sprint. There is no greater example of why you should take profits from the last week as what we saw with Medical Marijuana Inc (MJNA). I’m not picking on them, but as soon as the price went over .19 (Wednesday 11/2/16) I began to quietly give subscribers, followers and people chatting about it some advice. That advice being that first the market cap was not justified by anything tangible nor would the speculation on what they are doing internationally justify a market cap over $400,000,000 dollars and once people caught on to just this fact the stock would pullback dramatically. Also, it would likely pullback simply by the amount of dilution people like myself and others were cautioning about, if you don’t take profits before notes convert or before a pump ends than that’s entirely your fault. If you are not reading filings and looking for convertible debt, also your fault.
The lesson we learned from 2014 is best summed up by the idiom “Pigs get fat, hogs get slaughtered,” meaning if you are too greedy, too ambitious it will lead to your own ruin. There’s no problem with holding on for a dream, but It’s much wiser to take your principle investment plus 50-75% of your gains out of the equation. Play with house money and if you believe as I do that this sector can be a very lucrative investment roll profits into safer companies. These companies will have actual revenues, no toxic debt or intellectual properties that companies outside the public space will need. I have long been a fan of the Nasdaq Biotech companies, the Canadian LP’s and a handful of OTC companies. Remember these are event driven equities and there will be a pullback beginning tomorrow and post-election. The companies that will stand out will be non-dilutive, non-toxic and revenue producing. Play the trade, have a strategy for losses and taking gains. I promise you, if you do that you will make it to the finish line. Good Luck-
Jason Spatafora @WolfOfWeedSt
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