Canadian CANNAINVESTOR Magazine August / September 2017 - Page 82

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STRATEGIES

I recently had a good chuckle when I was told that the CannnaInvestor Canada writers were alchemists because we turn green into gold with our strategies, case studies, and stock pick lists. I cannot speak for the others on our team but I have been called worse things in my more than three decades of relevant experience.

In July, the industry was up over 11% but the start of August was a reverse trend and investors are asking why. What is interesting is that we predicted that upward trend was about to take form whereas many others reported after the fact that it had happened. From day 1 we have recommended viewing this industry as a delicate but vibrant ecosystem that was undergoing constant changes to its very environment. Changes that at times were so severe that it changed the landscape. We coined the term Ecoforming (analogous to Terraforming) to describe the phenomena. Since those early articles, comparing the industry to a delicate vibrant ecosystem undergoing constant shocks appears in the writing of others and not because these terms or perspective is catchy but rather because it is true.

A very recent example of Ecoforming likely contributed to the early August bearish sentiment and it came seemingly out of nowhere. To quote the Globe and Mail, the “Canadian Depository for Securities Ltd. (CDS) is worried about potential liabilities it would face if it facilitated a trade involving a pot-selling company that does business in the United States”. Those hoping to capitalize on a sudden sell off (short sellers, day traders, hucksters, or simply to buy at lower price, etc) were quick out of the gates as were the less informed who enjoy being followed on social media so they parroted the fear resulting in the spread of the word about this potential event being amped up.

Turning

GREEN

into