Pot Stocks Bounce Back

by JDH on November 9, 2019

Not much of a story today: cannabis stocks bounce back.

Canopy Growth, one of the biggest names, was up almost 13% on Friday.  So should we all buy pot stocks?

Nope.

Friday’s action was meaningless, nothing more than a blip in a massive downdraft.

Canopy Growth was almost $60 at the start of summer, and was as low as $25 on Friday, before bouncing over $28.  So, even if it doubles from here, it won’t be back to where it was a few months ago.

I assume that the smart money left pot stocks six months ago, or longer, and will likely never return.  Or, if they do return, it will be to US names, not Canadian, on the assumption that full legalization happens in the US, and that’s where the upside is.

I have spent the last few months selling my holdings in this area, and I have now built up a decent cash position, looking for the next opportunity.

For now, sitting on cash suits me fine.

When I figure out what to do with it, I’ll let you know.

Until then, sit tight.