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.

2 Recent Buys – PAAS, ABCN

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A quick update on a couple of recent purchases in my portfolio. For this round, I added to existing positions in my portfolio in the commodities and marijuana sectors.

  • First purchase: I added 50 shares of Pan American Silver Corp (PAAS.TO) @ CAD$18.88. This week’s quarterly results saw a drop in the revenue and earnings. PAAS hit some roadblocks during the quarter and there is nothing fundamentally wrong with the assets or the management’s execution. This was a great opportunity for me to nibble and add more shares as investors punished with a 8% drop in share price post-earnings. The company continues to drive average costs down, and continues to exceed previous targets for the year.
  • Second purchase: Following up from my initial investment in a MMJ stock last month, I bought a second tranche with 1,500 shares in ABCann Global Corp (ABCN.V) @ CAD$0.99.

Full Disclosure: Long ABCN.V, PAAS. Our full list of holdings is available here.

3 Recent Buys – KL, CBW, ABCN

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Here’s an update on some recent purchases in my portfolio. For this round, I have one purchase adding to my largest position in the portfolio and two new positions and a new endeavor in a new sector.

First purchase: I added to my position in Kirkland Lake Gold (KL.TO) after the continued pressure. The gold market is seeing headwinds in the last few days and KL got beaten down on no news. In fact, the cards are all in favor of KL outperforming and leading the pack in the mid-tier sector as the amazing news keeps flowing. The financials are stellar, the flagship mines are running smoothly, grades are also improving on a regular basis, new discoveries provide added tailwinds, new partnerships are being formed securing future production. It is really hard not to like this company. Its already the single largest exposure I have in my portfolio and I continue to average UP — something that most investors do not do. I added 100 shares of Kirkland Lake Gold @ CAD$15.25.

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Investing in Weedstocks to Reach Financial Independence

The following is a guest post from Save Stacks

There are many routes to financial independence. The average Joe works at his job for 30 years and ends up with a nice fat pension. Most people reading this blog are taking a different approach, to limit time in the work force. The most common methods are usually dividend investing or real estate to reach FI.  I’ve gone on a completely different path, investing in the newly forming MJ industry.

Start of My FI Journey

I started my FI journey like others, stumbling across a blog like this one. You end up catching the bug, thinking there is a different way of life than being a cubicle slave.

I was on the verge of buying a $70,000 truck, luckily I was saved just before making that mistake.  Instead I started buying my company stock options, which pay out a decent dividend. I was now obsessed with getting more dividend income.

Dividend stocks are awesome, paying you 5% per month and also gaining value at the same time. A lot of wealth has been generated from dividend stocks.  Kevin O’Leary from the Shark Tank only buys dividend paying stocks.

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