CANNAINVESTOR Magazine December / January 2016 - Page 128


Case Studies 3 and 4: The industry had not one but two highly anticipated IPOs during the second week of December. Cannabis Royalty Corp. (CSE:CRZ, OTC:CNNRF) and Emblem Corp (TSXV:EMC). CRZ commenced trading on December 8th and quickly rose to $5 before falling to as low as $2.80. It closed on December 12th at $3.40. EMC commenced trading on December 12th and rose from $2.85 to $3.98 and closed at $3.40. Both demonstrate the potential danger of buying on the first day of trading and EMC particularly as EMC also has warrants that trade and the warrant price reached $4 which was more than the highest share price. The warrants expire in 2019 and have a $1.75 exercise price meaning that the share price of EMC needs to reach $5.75 just to be even. It is more likely than not that those buying the warrants at those prices possibly confused the symbol with that for the shares. The November issue of CannaInvestor covered Emblem more thoroughly than any other source in my opinion. Cannabis Royalty has been likened to a Holding Company or Mutual Fund where risk is diversified geographically (including Canada) and across different market segments (including Hemp and the pet industry). You can substitute these suggested companies for any of the case study companies or with any company on the CANNAINVESTOR Top Stock Picks as each company on those lists have undergone a detailed selection process.

The monthly recap of past case studies follows and be forewarned that this summary is somewhat misleading (intentionally to keep with the theme) because despite the month over month increases in share prices mid November was a watershed time for many stocks in the industry as they reached 52 week highs before falling and often falling fast – recall earlier in this article I reference the person that I know who sold CGC over $16 on date … in fact, CGC reached $17.89 and just days later traded below $8. The difference between this summary and the intentional misleading posts on forums is exactly that … I disclosed the mid November price aberrations and this chart assumes a buy and hold strategy. However, one can chart the share prices during November to see the roller coaster ride it was.

From a

Retail Investor's Perspective