blog, blogging, money

WEEKLY MARKET RECAP

Red hot sector.

This week the cannabis sector has been on fire. Stocks such as Tilray, Canopy Growth, Aphria & Aurora have been gaining momentum this last month as Canada prepares for legalization of recreational marijuana on October 17,2018. Also , with whispers of larger tobacco, alcohol and pharmaceutical companies looking to enter the sector expect a lot of interest in these stocks.

Is it too late to get in the game? I don’t believe so. I believe a stock like Tilray , which has reached a high of $300 recently is way overpriced but there are other companies I believe still has lots of room to grow. Aurora, Hexo & Aphria are 3 marijuana stocks that aren’t as pricy as Canopy Growth or Tilray but have long term potential.

Aurora Cannabis is looking to uplist to US markets next month but at this time trading OTC under ACBFF. Also, their earnings date is coming up 9/25/18 so there is time to purchase some shares and receive possible future gains. Also , with recent whispers of large beverage companies looking to partner with the company, I think this stock is fairly undervalued when compared with the other stocks in the sector.

Hexo (Hydropothecary) is also a reasonably priced marijuana stock. They currently have a joint venture with Molson Coors. At a price under $7.00 there is still time to hop on the cannabis train for a decent price.

Aphria is also one of the top 5 Canadian marijuana companies and has the potential possibility of being picked up by a beverage, tobacco or pharmaceutical company.

I listed some of the different stocks in the sector and believe there is a lot of potential for high long term gains. Remember, this is a new sector so expect a lot of volatility in the short term. If you are risk-averse these stocks may not be in your best interest. If you are okay with high risks, high rewards, I suggest you research some companies and look to invest.

DISCLAIMER*** I do not associate or work with any of these companies. I recommend you do your own research or contact a financial/wealth advisor if you need assistance in deciding if these stocks are right for you.

blog, blogging, money

Weekly Stock Pick

My stock pick of the month is OTC ticker ACBFF : Aurora Cannabis. I chose Aurora because of the impending legalization of recreational marijuana use in Canada in October. Marijuana stocks are currently bullish with other heavy hitters like Canopy Growth and Tilray making huge gains over the last month.

As of September 17,2018 there has been rumors/whispers of Coca Cola being in talks with the company. The CCO of Aurora was recently interviewed on the Midas Letter & advised the company plans to list in the US in October which is good news and gives the company more legitimacy. Also, Aurora is currently under $8/share compared to the other major players like Canopy Growth which is $49/share and Tilray ,which I believe is way overvalued, at over $120/share.  Aurora Cannabis has been acquiring many other companies in Canada and internationally in the last year looking to be a future mega force in the cannabis sector. At this time many are worried about the ACBFF stock being diluted due to multiple acquisitions meaning there is a high amount of floating shares. I understand the concern, it is a risky investment but as with the whole cannabis sector there is a chance of huge returns in the long term. Dilution is an issue but since it is a young market there is plenty of room for growth. It is also wise to remember that cannabis/marijuana isn’t legal everywhere. It is legal in certain states in the United States of America but not on a federal level. There are also European countries that it is legal. There is future opportunities outside of Canada for when it becomes legalized in other countries. This allows them to have a head start on production. At this time, Aurora Cannabis is setting itself up to have a high production rate not just for recreational use but for medicinal use worldwide.  Since it is still a new market/ young company future profits are purely speculative.

DISCLAIMER*** Investing is risky and anytime you invest in the stock market you risk losing money. I am not affiliated with this company nor am I financial advisor or stock broker. I recommend you do your due diligence and research companies on your own before investing. Also, I suggest reviewing companies financial statements and speaking with a certified financial planner before investing if you are new to investing.

blog, money

Growth Stocks.

As a 28 year old millennial looking to increase my net worth I have been researching sectors that have future growth potential. I currently have a brokerage account and Roth IRA with E*trade and have chosen high risk stocks with long term potential. The stocks I have are considered high risk because they are in fairly new sectors or young companies. Since I am young and have years of investing ahead of me, it is safe for me to have a higher risk tolerance vs someone who is close to retirement. I also have a traditional 401k/Roth 401k with my employer so I am able to utilize my personal account with E*trade to have a much more aggressive portfolio than I have in my employee sponsored retirement account.

 

My goal is to retire before the age of 45. If I am able to acquire a certain amount of wealth by 35 to where I have enough passive income to live on I would consider leaving the work force sooner to pursue my own passions. At this time, my investment accounts include young companies in the marijuana/cannabis sector such as Canopy Growth, CV Sciences Inc and others. I also have invested in Chinese companies that are still fairly young. Bili , Uxin & Huya are a few of the companies I have decided have the possibility of providing high returns in the future. As you know with investing nothing is guaranteed so doing as much research on a company and reviewing their financials is extremely important.  I do have other stocks in my portfolio and will continue to give updates on the blog and give my stock picks each month.  I am not day trading or holding for the short term. A famous phrase by one of the most brilliant investors Warren Buffet said “The stock market is a device for transferring money from the impatient to the patient.”  I believe the stocks I have chosen will be what we call “multibaggers” in the future.  A multibagger is a stock that provides returns over 100%. At this time CV Sciences Inc, which is my stock of the month, has provided me with a return of over 100% so it would be considered a two-bagger stock. When you invest in stocks that are considered risky you must be able to handle the volatility of them. If seeing a possible 20% or more drop in price of a stock causes you angst even when the fundamentals of a company remains in tact, you may not be able to handle the risks. If you decide to choose a blue chip stock, like Coca Cola, expect a less volatile stock but average returns. You wouldn’t expect to have increasingly high returns with those stocks.

If you are new to investing and looking to grow your money look to companies that have growth potential. Visit financial sites, online financial message boards and learn as much as you can. The sooner you start the better. Time is everything with investing and if you have years to hold stocks that have good fundamentals you will almost always be guaranteed a high return.

 

blog, money

STOCK OF THE MONTH

My stock pick for the month of August has been stock ticker CVSI. The stock is up over 700% for the year. CVSI is CV Sciences Inc which has two divisions:Pharmaceuticals and consumer products. The company develops synthetically-formulated cannabidiol-based medicine. For further information please see their website : CV SCIENCES INC

 

DISCLAIMER: I do not recommend buying a stock without doing your own research. The best thing to do is research a company and review their financial statements before deciding to invest your money. Investing in the market is a risk. Make sure you have as much information as possible. It’s also never smart to put all your eggs in one basket so if you are buying stocks make sure your portfolio is diversified. This means having stocks from different sectors and companies in your portfolio which will help minimize your risk of losing money long term.

 

 

 

 

Self help

Sunday [RESET]

Sunday is the perfect time to reflect on your upcoming financial goals. Is there anything you want to change? Looking to rearrange your budget? Sunday is the perfect day to map out the steps you will like to take for the week that will help you meet your long term goals.

Create a list of the things you need to buy for the upcoming week such as food, gas, tolls, maintenance, bills etc… If you know where your money is going ahead of time it will be easier for you to account for where it’s going. Review any retirement accounts you have or your current investment strategies. Sunday is a day to unwind and it will be easier to handle finance goals when you are in a relaxed state of mind. Managing your finances when you are not stressed will make it a more pleasurable experience. What you do today will show in the future. Remember when you have a plan and execute it you are more likely to reach your goals. Action gets you results. Inaction leaves you standing in the same place. Don’t keep holding off until tomorrow, today is the best day to get started.

finance

Compound Interest

If you are new to investing you may not know how investing works or what it exactly entails.  It sounds easy but if you have no clue what it actually means to invest or how investing makes you money, you may avoid it altogether.

If you invested $1,000 in Amazon when it first went public in 1997 , it would be worth over $1 million dollars today. Please note that not many people would have stuck with the stock for the last 20 plus years to ride out the lows to get to where it’s at today but this is an example of compound interest at work. I am using Amazon as an example because it has been one of those stock success stories that people look to replicate but if it was that easy to make millions we would all be millionaires so please keep in mind that Amazon is quite the anomaly.  I chose this example to show you how compound interest can work wonders and since it is a company that most people know it is easy to follow along.  Although, there is more to the high returns with Amazon stock I just want to focus on compound interest for this blog post because it really is the reason people risk investing their money.

A simple way to explain compound interest is “interest on interest”.  It is where interest is calculated on the initial principle amount plus any previous interest you accumulated. The compound frequency varies depending on the type of account you have your money in. The compounding frequency can be daily, weekly, quarterly semiannual, annually or continuously.   If you are still lost to what any of this means please see the following example below to help you get a better understanding of how this works.

 

Let’s say you invest $100 in an account with an annual/yearly 10% interest rate. If you initially invested $100 , your money would now be worth $110 at the end of the year. The following year, you make another 10% return on your money which would now leave you with $121.00 at the end of that second year.  The $121.00  in the second year was calculated by taking the initial principle amount you invested the year before of $100 plus the 10% interest which was $10.00  totaling $110 and adding another 10% to that amount.  You can do the same thing for the following year and add 10% to the $121.00 from the second year so that by the end of the third year your money is now worth $133.10. It may not sound like a lot but if you keep that money in that same account for 20 years without touching it that money will be worth $672.75. Most people would continue to add money to the account and not just make one deposit. This is where the magic of compound interest can help you build a nice size nest egg for retirement or any large purchase you may be planning.  If you continue to add money to that account over the 20 years you will have a nice amount of money to fall back on. Let’s say after your initial investment of $100, you continue to add $1,500 to the account annually for 20 years from the date you made the initial investment. Your account would be worth $86,585.25.  There are many different investment vehicles and I would recommend researching this information in books or online immediately.  The earlier you start, the easier it will be for your money to grow. If you have 30 years until you retire you can invest less money over time than if you wait until later on in life and have to play catch up by putting away much more just to be able to enjoy a comfortable retirement.

If you have any questions please feel free to ask below. You can also google compound interest calculators if you want to play with different numbers and lengths of times to see how much money you can have in the future if you start investing now.

 

Disclaimer: Returns aren’t guaranteed and there are risks when investing especially in the stock market. Please do your due diligence in researching or get help from a financial professional before investing your money if you are not sure where to start. ***