Stocks - The Best Buys 2

[Jason14h]

Originally Posted by MJK

I’m up $5000 in 20 days, my way is more fun.

I don't think you got the point of my post, that you didn't understand compounded rates of return in a diversified portfolio, and thought it would take 60 years to gain $10K

Also if you bought at 7$ above like you said, you're up $3200, not $5000.

And those of us who were smart had Aurora under $1! But hey, math is hard!

[MJK]

Originally Posted by Jason14h

I don't think you got the point of my post, that you didn't understand compounded rates of return in a diversified portfolio, and thought it would take 60 years to gain $10K

Also if you bought at 7$ above like you said, you're up $3200, not $5000.

And those of us who were smart had Aurora under $1! But hey, math is hard!

No, I don't think you got my post, it was an exaggeration (I thought an obvious one) to make the point that I don't have patience to wait. But thanks for clarifying.

Congrats on being smart.

[DropIt]

Claws are out!

[MJK]

Some people I know are looking at Scott's Miracle Grow as a potential investment. I think they are exploring opportunities to enter into the weed market.

[Slava]

Originally Posted by MJK

Some people I know are looking at Scott's Miracle Grow as a potential investment. I think they are exploring opportunities to enter into the weed market.

That’s been a pretty common off-shoot to the cannibas sector for the past year or so actually.

[MJK]

Originally Posted by Slava

That’s been a pretty common off-shoot to the cannibas sector for the past year or so actually.

Yes just seeing recent news on it and comparing that stock vs Canopy on what might be the better investment.

A good start to the week for weed stocks...

[red sky]

Originally Posted by MJK

Yes just seeing recent news on it and comparing that stock vs Canopy on what might be the better investment.

A good start to the week for weed stocks...

Market expecting CRON or APH deal with Diageo. It will be interesting to watch this develop.

[station]

I've asked this before on here but I'm still curious. For those heavily into cannabis, are you expecting future revenues to justify the insane valuations of these companies and, if not, what is your exit strategy? Is it a long term play based on hope of real growth or are you just riding the wave and hoping to get out before the bubble bursts? It's not a passive aggressive criticism either, I'm just generally curious while acknowledging that I've missed the boat on cannabis to this point. Just check this basic comparison of the most recent quarter of Canopy Growth to Canadian Tire and Dollarama which have a similar market caps:

WEED.TO
Market Cap: $13.4B
Revenue: $25.9M
Net Income: -$80.2M

CTC.A.TO
Market Cap: $11B
Revenue: $3.2B
Net Income: 156M

DOL.TO
Market Cap: $16B
Revenue: $756.1M
Net Income: 101.6M

I know there is way more than this to the story but the market cap of WEED is insane even compared to a high growth company like DOL.

[Jason14h]

Originally Posted by station

I've asked this before on here but I'm still curious. For those heavily into cannabis, are you expecting future revenues to justify the insane valuations of these companies and, if not, what is your exit strategy? Is it a long term play based on hope of real growth or are you just riding the wave and hoping to get out before the bubble bursts? It's not a passive aggressive criticism either, I'm just generally curious while acknowledging that I've missed the boat on cannabis to this point. Just check this basic comparison of the most recent quarter of Canopy Growth to Canadian Tire and Dollarama which have a similar market caps:

WEED.TO
Market Cap: $13.4B
Revenue: $25.9M
Net Income: -$80.2M

CTC.A.TO
Market Cap: $11B
Revenue: $3.2B
Net Income: 156M

DOL.TO
Market Cap: $16B
Revenue: $756.1M
Net Income: 101.6M

I know there is way more than this to the story but the market cap of WEED is insane even compared to a high growth company like DOL.

I think there are two plays.



#1 ) Someone buys them for a substantial premium
#2) Weed becomes as popular as beer for recreational use


Just as an example, in the past 10 years Anheuser Busch stock has gone from $15 to $85. If Weed becomes as popular as beer as the drug for recreation use, revenue could rise very quickly.

[OMG!WTF!]

Originally Posted by station

I know there is way more than this to the story but the market cap of WEED is insane even compared to a high growth company like DOL.

Weed is just a perfect example of emotional investing. You'll pull your hair out trying to figure out what to do with it from a fundamental perspective. People know about pot, like pot, hear about pot on the news and then go buy the stock for no fundamental reason other than fear of missing out and everyone else is doing it. Tesla was the same way and now short sellers spend their days going totally freaking mental trying to figure out why their valuations are not working in their favour. These stocks are much much better to look at from a technical perspective.

[jeffporfirio]

My cost basis for my position in WEED is close to 20, at 61 I'm a bit nervous and have put in a stop limit sell at 55

[Fire in the disco]

Apologies in advance as I’m sure this info is already somewhere in this thread. As a guy who wants to start trading casually what is the best way to get into the market? Apps like quest trade? Or?

Any tips are appreciated.

[puckedoff]

Originally Posted by Fire in the disco

Apologies in advance as I’m sure this info is already somewhere in this thread. As a guy who wants to start trading casually what is the best way to get into the market? Apps like quest trade? Or?

Any tips are appreciated.

I'm not going to recommend 'trading casually' but I would advise you to understand your goals, have a clear picture of any major upcoming purchases etc. to start with to understand what funds you can allocate to your portfolio.

I'm not sure if you fall into this camp but I sometimes recommend people give this a read when they are starting out -http://tuttle.merc.iastate.edu/Bernstein_If_You_Can.pdf

Then index 95% of your portfolio, and use the last 5% for investing in individual stocks (a.k.a. buy VCoins, pick Stanley cup champs and short TSLA via puts. Or Canadian bank stock, its up to you.)

[Fire in the disco]

Originally Posted by puckedoff

I'm not going to recommend 'trading casually' but I would advise you to understand your goals, have a clear picture of any major upcoming purchases etc. to start with to understand what funds you can allocate to your portfolio.

I'm not sure if you fall into this camp but I sometimes recommend people give this a read when they are starting out -http://tuttle.merc.iastate.edu/Bernstein_If_You_Can.pdf

Then index 95% of your portfolio, and use the last 5% for investing in individual stocks (a.k.a. buy VCoins, pick Stanley cup champs and short TSLA via puts. Or Canadian bank stock, its up to you.)

Thanks, perhaps my wording was a little casual. I’ve been investing for well over a decade in rrsps/mutual funds etc.

I’m looking to start buying stocks on my own and looking to see what platform people that trade here recommend to use.

[red sky]

Who do you bank with? The platforms and cost are pretty similar these days.

[Cecil Terwilliger]

Originally Posted by Fire in the disco

Thanks, perhaps my wording was a little casual. I’ve been investing for well over a decade in rrsps/mutual funds etc.

I’m looking to start buying stocks on my own and looking to see what platform people that trade here recommend to use.

Here are last years Globe and Mail rankings. The most recent version is behind a paywall but I expect is pretty similar.

https://www.theglobeandmail.com/glob...ticle27571960/

Nm, here is 2018 with breakdowns of each online brokerage and what they offer, charge etc.

https://join.qtrade.ca/rob-carricks-...ne-brokerages/

[Shazam]

Originally Posted by Fire in the disco

Thanks, perhaps my wording was a little casual. I’ve been investing for well over a decade in rrsps/mutual funds etc.

I’m looking to start buying stocks on my own and looking to see what platform people that trade here recommend to use.

Questrade, simply because of lower trading fees.

Many of the places will have yearly account fees if the book value of your accounts is under a certain dollar amount.

Might want to wait for Wealthsimple's trading platform.

Avoid RBC's, the platform has barely changed since the mid 90s.

[DoubleF]

Originally Posted by Fire in the disco

Thanks, perhaps my wording was a little casual. I’ve been investing for well over a decade in rrsps/mutual funds etc.

I’m looking to start buying stocks on my own and looking to see what platform people that trade here recommend to use.

If the keyword is casual, then I'd suggest the following (keep in mind there's many different opinions out there). I'd also suggest keeping it "fun" rather than get too serious and just spending a lot of time worrying about the portfolio.

IMO, first thing to do is pick up the mentality (to keep it fun) that what you put into your stocks is something you may completely lose. No matter what people say, it's a form of gambling with varying odds. People will argue this point a lot, but I think it's important. Many stocks out there are "safe". Like a bank with a steady revenue from interests and charges. But likely, as your confidence goes up, you will jump into things that have a possibility of losing major numbers (25%+). If you consider that you may lose it all, you may walk in with stronger nuts in terms of cutting your losses and moving your residual amounts into stocks with better potential/fit in your portfolio.


- Trade with the bank you bank at (ie: TD, BMO, RY etc.). It's easy to set up, easy to transfer funds, faster to transfer funds and the price per trade is reasonable.

- Consider purchasing minimum batches of stocks between $800-1500 if you want to play and diversify. This means that the $10+$10 transaction fee is no worse than 2.5% of the transaction (usually less).

- Start off with Canadian banks as a training wheel. IMO it's the easiest stocks to learn and understand for those with low risk appetite and no exposure to stocks prior (I've had people tell me this is dumb though, but I feel most of them are more gamblers than true investors).

But consider this: It's a bank, it gives a dividend so holding it while its down still has benefits. Most of them historically will gain long term (minus one offs like 2008 crisis). A bank is a relatively easy business to understand (income from interest and fees, expenses from people and locations). Quarterly reports are easier to understand, major swings from performance and politics are easy to understand. A bank is boring and consistent, you rarely have to keep tabs on it.

- Once you have your base stocks, then add more "fun" stocks to play with. With such a combination, you don't have to monitor 100% of the stocks you own at any given time. Just the 20-30% that are relevant when you are checking up on them.

For instance, I have a TFSA which for every $10K is something like:
- 25% boring dividend stocks (Banks)
- 60% recognizable names with moderate risk (ie: Grocery, ETFs, infrastructure, transportation, mining, tech, telecom etc.)
- 15% of the forefront stocks or stocks no one recognizes (Weed, penny stocks, tech etc.)

At any given time, I probably only have to pay attention to about 30% of my stocks. The banks are just either up or down, the the rest are either having interesting news or just cooling off. Personally, I log into my portfolio around every 2-3 months. It's more fun for me that way. Monitoring my stocks every few days or weeks or more isn't really fun.

[DoubleF]

Originally Posted by Shazam

Questrade, simply because of lower trading fees.

Many of the places will have yearly account fees if the book value of your accounts is under a certain dollar amount.

Might want to wait for Wealthsimple's trading platform.

Avoid RBC's, the platform has barely changed since the mid 90s.

This I can sorta agree to a certain extent. If I recall correctly, many banks will waive certain fees if you have other products with them. My buddy is looking to transfer his Qtrade account to his bank as it's more convenient for him as a casual trader. It's not cheaper for sure though, but not by a horrible amount.

I think a bank platform is a good place to dabble, Qtrade etc. if you decide you want to play on a more consistent basis. It's also not horribly problematic to have both.

For instance, if no basic fee to open and maintain (ie: TFSA with bank), a total difference of $10 isn't huge ($10+10 vs $5+5) assuming you aren't putting in a huge amount of transactions. The ease of set up and quick transfer of funds is ideal for dabbling. Thus if a dabbler gets bored, they don't have some random assets somewhere. Said dabbler would be constantly reminded they have investments when online banking.

I do understand the reason for something like wealthsimple and quest trade. I am just throwing it out there as a devil's advocate I guess that I just think that going through a bank isn't as dumb as it once was. (ie: $150 per year + $20+20 transaction fees)

[Shazam]

Yeah, that's true I suppose. I'd still avoid RBC's. It is a terrible, terrible trading platform.

I don't keep any short term money at any of the major branded banks, because they suck.