Long
Long Marijuana / Long Planet 13 MJ Company
Above 4$, this thing is literally going to RIP - no resistance whatsoever overhead
Fundamentally great company - operates a MJ super store in Las Vegas with plans to expand to major markets in LA - these stores are like the Disney Worlds of Weed
Good company for a take-out target or just grow massively. But due to the fact that its a penny stock, some risks involved is ALOT of dilution of stock to raise money to build new stores, thereby tanking the stock price on a more regular basis than your typical blue chip stocks - aka more volatility, which equates to bigger draw downs. If you can stomach, you can sit through it then by all means go for it
Personally here is how I'm going to play it.
Swing Trade (multi day hold, maybe a few weeks) - price will crank higher either due to hype or news or something non-fundamental
Buy-Stop at 4.15 (auto order to buy when price breaks out)
Stop-Loss at 3.5 (a tight stop loss as the breakout price assumes big volume and buying to push price up) - i expect a 10%+ move in order to get out of this rising triangle
Number of shares: 2000-4000, havent decided yet
Total money at risk if stop loss hit: 1300$ to 2600$
Targets
1: 5$ (sell 1/2 to lock in profits)
2. 5.5$ - 6 (reset stop loss on remaining 1/2 to 4.15)
3. 6+ (ride either 1/3 or 1/4 of remaining shares)
Note: if there is a sign of a big red candle and lots of selling volume, these targets may get called off and the entire position is either sold off, or I move my stop loss up to 4.3-4.5 to take risk off the table. Yes I may lose potential profits but would much rather not lose capital
Fundamentally great company - operates a MJ super store in Las Vegas with plans to expand to major markets in LA - these stores are like the Disney Worlds of Weed
Good company for a take-out target or just grow massively. But due to the fact that its a penny stock, some risks involved is ALOT of dilution of stock to raise money to build new stores, thereby tanking the stock price on a more regular basis than your typical blue chip stocks - aka more volatility, which equates to bigger draw downs. If you can stomach, you can sit through it then by all means go for it
Personally here is how I'm going to play it.
Swing Trade (multi day hold, maybe a few weeks) - price will crank higher either due to hype or news or something non-fundamental
Buy-Stop at 4.15 (auto order to buy when price breaks out)
Stop-Loss at 3.5 (a tight stop loss as the breakout price assumes big volume and buying to push price up) - i expect a 10%+ move in order to get out of this rising triangle
Number of shares: 2000-4000, havent decided yet
Total money at risk if stop loss hit: 1300$ to 2600$
Targets
1: 5$ (sell 1/2 to lock in profits)
2. 5.5$ - 6 (reset stop loss on remaining 1/2 to 4.15)
3. 6+ (ride either 1/3 or 1/4 of remaining shares)
Note: if there is a sign of a big red candle and lots of selling volume, these targets may get called off and the entire position is either sold off, or I move my stop loss up to 4.3-4.5 to take risk off the table. Yes I may lose potential profits but would much rather not lose capital
Note
Trade was triggered at a buy-stop of $4.1Added 5500 shares as of yesterday
Note
Correction. Only purchased about 1300 sharesTrade idea is still active
Note
If this drops to 5$, I will look to add
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.