It is no secret, that Cannabis stocks are among the most volatile asset classes known. And even if volatility (upwards) pleases every investor’s heart, it is even more important to have a precisely calibrated investment and activity compass in consolidation phases ready.
We, the Cannabisradar-Team, have therefore designed a stringent title selection process which includes e.g.
- Entry Levels
• Technically determined potential price targets / profit-taking areas
• Defining important support areas / zones
• Stop-loss prices
It is advisable to define these levels before entering any new positions, as it is precisely on very volatile days such as in the cannabis sector last Friday it may be emotionally difficult to make rational decisions. In particular, if a position is too large on a percentage base of the total portfolio value or a particular position is in a crash mode.
In addition to the large caps, we are also focusing on undiscovered cannabis pearls, which often fly under the radar of investors. Our first model portfolio newcomer was even able to go into the weekend with a small positive price increase in the past trading week. The company is a potential top winner in the Cannabis 3.0 (‘edibles’) segment!
But let’s take a look now at the performance of the 20 largest cannabis stocks in May – on average they fell by 16%.
The table below shows the companies on a alphabetical sorted overview:
The table below is sorted by the largest percentage losses in the month of May 2019: