MMEDF - Mr. Wonderful, Dana White, and Me There is a lot of action going on in the Psychonaut arena. I think if I'd have to pick an early winner, I like MMEDF. Also like CMPS.
Mr. Wonderful, Kevin Leary is on board. Dana White understands the significance, and athletes will bring this to mass adoption like they did with MJ.
SHRMF
Time to make money on magic mushroomsFor those that follow my analysis regularly, you know that I do not cover penny stocks or anything thinly traded. The reason for this is because it's simply not necessary to generate big returns trading penny stocks. I would MUCH rather trade options on large cap stocks any day. No question about it. I also don't rely on fundamentals because I am a technical trader, however, all of the stocks I pick to trade are considered fundamentally strong by all metrics (consistently strong EPS growth / rapidly growing revs /high RS in their respective category, etc).
But now I am looking at these penny stocks in the magic mushroom sector. Medicine using psilocybin (active ingredient in magic mushrooms) is intriguing because it could be a powerful theme . I love finding themes that haven't really hit mainstream yet (think weed stocks in 2017, crypto in 2016, Electric Vehicles, SaaS, etc). Themes generate buzz and stir hype, which is key for parabolic moves.
Of all shroom stocks I've looked at, MindMed (chart above) looks best to me on a technical basis. It has a clear invalidation point (so risk could be measured) and it just broke out. It was the first psychedelic medicine company to list on the Canadian exchange in March 2020. Kevin O'Leary from Shark Tank is invested in it. I always found Kevin to be the savviest in the room, so the fact that he's involved says a lot to me. Click here for their investor deck or click here for the website.
Here are two other companies in the space:
2) Compass Pathways, backed by the Facebook investor Peter Thiel:
3) And Champignon Brands:
I don't like buying dips like these that don't have enough history, so the only one I'll be buying in small size (no more than 4% of my capital) is MindMed. As someone that's done shrooms in Amsterdam, in the mountains while camping, and several other amazing trips, I am a big believer in the positive outcomes magic mushrooms could bring. Bitcoin actually clicked while I was on a shroom trip in 2015. Fun times :)
Going Long!I see great potential in this. Almost looks like the same hype as the cannabis one, but less strong. Share your thoughts.
