Many everyday investors consider the tech-heavy NASDAQ the home of volatility and sky-high valuations. Well, its Chinese contemporary has just made its debut and is already looking to emulate those very qualities. China’s new tech exchange, STAR Market, made a flying start on Monday with stocks of 25, mostly technology, companies listed on the platform jumping 140 percent and making three high-profile investors overnight billionaires.
The frenzied buying helped total market capitalization to more than double from 225 billion yuan ($44.5 billion) to 529 billion ($104.7 billion).
Just over three months ago, I’d warned investors that the cannabis sector looked especially shaky in the middle of spring. At the time, industry experts and analysts were issuing warnings about earnings for top producers. Recreational sales disappointed in 2019 after a hot start following legalization in October 2018.
The crisis at CannTrust has exacerbated these problems and cast a shadow over the young sector. Horizons Marijuana Life Sciences ETF has plunged 20% over the past month as of close on July 24. So, should investors be fearful or greedy as volatility strikes cannabis stocks?
In the case of Aurora Cannabis I would argue for the latter approach. Aurora stock has plummeted 30% over the past three months. This recent dip has pushed shares into the low end of its 52-week range. The stock had an RSI of 32 as of close on July 24, which puts Aurora just outside technically oversold territory…CLICK for complete article
Tesla Inc shares plummeted on Thursday after the company reported a much larger-than-expected loss in the second quarter and fell short of consensus revenue estimates as well.
Tesla reiterated its full-year vehicle delivery guidance of between 360,000 and 400,000 units and once again said the company will be profitable in the second half of 2019. However, the market was disappointed with weak auto margins and yet another quarter of tremendous cash burn.
Several analysts have weighed in on Tesla following the report. Here’s a sampling of what they’ve had to say.
Wedbush analyst Daniel Ives said profitability remains elusive for Tesla.
“Herein remains the concerning trend, that unless self driving functionality and other software upgrades are sold with Model 3 units it will be a major challenge for Tesla to ramp its business model and gross margin profile in line with long term targets and therefore show profits on an ongoing basis,” Ives wrote…CLICK for complete article
What will legal weed look like in the next few years? These cannabis market predictions are already coming true.
With new products, untapped markets, and better access to research and capital than ever before, the cannabis market is in the midst of another record-breaking year of growth.
Overall, 2018 was a groundbreaking year of growth for the cannabis market. But expect the industry to expand through 2019 and into 2020 as a volatile market becomes more stable and mainstream, encouraging unprecedented investor and consumer confidence.
Here’s what investors and consumers should expect as the cannabis market matures….CLICK for complete article
Investors can find plenty of fundamental reasons to think the 10-year bull market is coming to an end, with retail fund outflows, crashing yields, and the destruction of globalization all perfectly capable of signaling the next recession. However, technical price structure may offer stronger clues to market direction as we near the end of a prosperous but turbulent decade. And right now, this arcane venue is flashing warning signs that could translate into much lower stock prices.
Let’s look at three technical elements that predict the S&P 500 has topped out or will top out in coming months. All revolve around perfectly placed 2019 price action and broad brush pattern readings asserting that the rally has reached a level that can’t be sustained in the second half. What these numbers don’t reveal is the ultimate downside if bears resume control of the ticker tape, especially after more than nine months of binary price swings….CLICK for complete article
CannTrust Holdings Inc(TSX:TRST)(NYSE:CTST) investors got more bad news on Monday when they learned that the company’s operations were found non-compliant with Health Canada’s regulations.
In its Pelham, Ontario facility, CannTrust had been growing cannabis in rooms that were not yet licensed and still pending approval. Although they did ultimately receiving licenses in April 2019, it didn’t change the fact that the company was growing in the rooms prior to then.
What’s also troubling is that regulators noted that “inaccurate information” was provided by CannTrust employees. As a result of the infractions, Health Canada is holding 5,200 kilograms of dried cannabis that CannTrust previously harvested from those rooms. The company is also voluntarily holding 7,500 kilograms at its Vaughn location, which also has cannabis produced from those rooms…..CLICK for complete article