CHV

Recent Sell – CHV

A recent sale in my portfolio capturing some significant gains and booking profits.

The recent run-up in Marijuana stocks has been a sight to behold. Investors seem to be in a FOMO frenzy, whether purely an excitement and positioning for the legalization or recreational use of marijuana in Canada come summer 2018, or a Santa Clause rally, or year-end window dressing by institutions…it’s hard to tell. However, when the market offers such spectacular returns in a short amount of time, I remain skeptical of whether this momentum will hold. See the following chart of the Marijuana Index and the returns in the last few weeks/months.

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3 Recent Buys – NVO, CBW, CHV

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Here’s a quick update on three more purchases in my portfolio in the past few days. This time, I have two new purchases and one addition.

  • First purchase: Who likes to catch falling knives? Apparently I do…Over the last couple of weeks, I have initiated and added to new position in Novo Resources Corp (NVO.V). Its seen some downward pressure and I am already in deep red with this position. Still, I believe that there is potential for some great returns here. For those unfamiliar, Novo Resources is a gold exploration company that is focused in the Pilbara region of Western Australia. There has been a new gold rush in the region, with junior companies staking claims on land packages — and Novo holds a nice big chunk, most of it on its own while some is in joint venture with Artemis Resources. Novo has got a lot of hype lately and has seen the stock price shoot up after some good initial results, but some sample results lately have put a damper and the stock has been punished. I have clearly got in too early, but am willing to hold through the next set of results that come in January. This is the good thing about resource sector — as long as the gold is present in the ground, you can just sit back and wait for the market to turn. I bought in three tranches and currently hold 1,000 shares at an average cost basis of CAD$7.25. See corp presentation for more details about the company.
  • For the second purchase, I added to an existing position in Cannabis Wheaton Income Corp (CBW.V), with 3,000 shares @ CAD$0.85. This is my second purchase of the company and I wrote more details about this company in my first post (click here for details).
  • The last purchase for this iteration is a another weedstock. I initiated a position in Canada House Wellness (CHV.C), a small cap vertically integrated licensed producer. Instead of rehashing, I will simply link to this great post from Deep Dive, which details the company. I initiated with 3,000 shares @ CAD$0.315.

What do you think of these purchases? Share your thoughts below.