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The Dramatic Rise and Fall of Cannabis Company Stocks

The Dramatic Rise and Fall of Cannabis Company Stocks

The unprecedented expansion of cannabis across North America took the investment world by storm, as investors raced to cash in on the “green rush”.

Yet, even as changing regulations unlock new opportunities, it seems as though the cannabis stock bubble has already burst — at least temporarily.

Today’s visualization dives into the roller coaster of cannabis company stock valuations over the past few years, and which companies remain standing in this hazy market.

A Wild Ride for Cannabis Stocks

The North American Marijuana Index tracks the equally-weighted stocks of leading companies operating in the legal cannabis industry in U.S. and Canada. Companies listed on the index must have at least 50% of their business strategy focused on the legal industry, including ancillary operations that support companies and consumers…CLICK for complete article

The Most Innovative Jobs In The U.S. Are Clustering In A Handful of Cities

The United States has a total area of 3,796,742 square miles. That makes it the third or fourth-largest country in the world by land area, depending if you count overseas territories. So what’s the point? Despite its size, the U.S. is facing a dilemma of sorts. According to a new report from The Brookings Institution, regional divergence in the U.S. innovation sector “has reached extreme levels.” The innovation sector, composed of 13 of the nation’s highest-tech, highest R&D industries, is vital to the U.S. economy. The innovation sector accounts for 3% of U.S. jobs, but generates 6% of the country’s GDP, a quarter of its exports and two-thirds of business R&D expenditures. The industries, such as software, pharmaceuticals and semiconductors, consist of workers with degrees such as science, technology, engineering and mathematics.

The report found that job gains in the innovation sector are becoming highly concentrated to a handful of “superstar” metropolitan areas. Boston, San Francisco, San Jose, Seattle and San Diego captured more than 90% of all new jobs in the innovation sector from 2005 to 2017. These cities’ share of the nation’s innovation sector employment increased from 17.6% to 22.8% during this period.

One-third of the nation’s innovation sector jobs are now in just 16 counties, with more than half concentrated in 41 counties. The hardest hit cities, in terms of losing innovation sector jobs over this period, include Chicago, Philadelphia, Dallas and Los Angeles.

The report discusses some of the negative externalities as a result of innovation sector jobs clustering to a few cities. The most obvious is housing. A separate report from PropertyShark found that California is home to 73% of the nation’s priciest zip codes. The Bay Area alone is home to 55 of the nation’s 125 most expensive zip codes….CLICK for complete article

10 Most Oversold Stocks In The S&P 500

Technical traders are always looking for signals that a stock could be due for a change in direction. Given that stocks rarely move in one direction for too long without periodic retracements, a stock that has endured heavy selling pressure and has become “oversold” may be a potential buying opportunity.

RSI Explained

One of the most popular metrics for determining whether a stock is overbought is relative strength index, or RSI. RSI is an oscillator that fluctuates from 0 to 100 based on the magnitude of recent price changes in a stock. RSI can be calculated on any number of different time periods, but the typical period is 14 days.

The formula for calculating RSI is RSI = 100 – [100/1+(average gain/average loss)]. However, all traders need to know is that the lower the RSI, the more oversold a stock is. The higher the RSI the more overbought a stock is considered to be. Typically, traders use 30 (oversold) and 70 (overbought) as potential buy or sell signals.

A stock with an RSI under 30 is a candidate for a technical bounce, at least in the short term….CLICK for complete article

Trade Deal Not Likely Before Christmas 2020

So much for that trade war deal for Christmas. It’s not happening, and the DOW has shed nearly 400 points since this morning on that holiday sentiment alone.  By 12:28pm EST, the DOW had shed over 440 points.

Earlier today in London, Trump dropped a trade war bombshell, saying that a deal isn’t like until 2020, and worse–not until after presidential elections, adding that “In some ways I think it’s better to wait for after the election if you want to know the truth”.

That likely means that Trump has been less than forthcoming about the success of negotiations about a trade deal, and publicly aiming for a deal after elections would suggest that it wasn’t a failure, officially, so might resonate less at the polls.

And “after the elections” is a vague notion, and Trump concedes that he has “no deadline”.

The DOW just took a plunge because the markets had already priced in a trade deal after a verbal agreement between China and the U.S. over a month ago.

And it’s not just the China element that’s dragging down the markets…CLICK for complete article

Subway Franchisees Reportedly Hate New CEO’s Promotional Stance

Fast-food sandwich chain Subway is set to introduce new deals in January that place additional pressure on already struggling franchisees, according to The New York Post.

Subway’s Promotional CEO

Subway’s advertising agency discussed several discounts the restaurant is set to introduce in a series of private and regional conference calls, The Post’s sources said.

Some of the upcoming promotions include slashing the price of a 6-inch oven-roasted chicken sandwich from $4.25 to $2.99. In total, six sandwiches could be discounted under the leadership of John Chidsey, who was named CEO on Nov. 18.

Chidsey brings fast food experience to the table and previously served as the CEO of Burger King….CLICK for complete article

Aurora Cannabis Stock Falls to Key Support Levels

Aurora Cannabis Inc. (ACB.XTSE) shares moved more than 3% lower during Monday’s session after Cronos Group Inc. (CRON) sold its stake in Whistler Medical Marijuana Aurora for C$175 million in stock. While management expects that the strategic acquisition will add significant value, investors are concerned about potential dilution from the all-stock deal.

Melius Research analyst Rob Wertheimer started coverage on Aurora Cannabis stock with an Overweight rating and a price target of C$17 per share, calling it his top pick in the cannabis space. While the analyst firm anticipates overcapacity issues in the future, Wertheimer notes that Aurora has taken measures to capture market share while lowering production costs to preserve margins…CLICK for complete article