In November 2016, the ballot measures decriminalizing marijuana led to an indiscriminate buying frenzy of Marijuana stocks, with investors ignoring the fact that so many of these firms were small and under-financed with inexperienced management teams, resulting in inefficient trading. While the beginning of 2017 created a run-up in share prices for most Marijuana companies across the industry spectrum, the rest of the year has been rather flat, or even produced losses while the financial sense of investors recovered.
Separating Winners from the Losers
Does this mean that the run is over, or that the widely taunted "enormous" potential of this sector does not exist? Our team at Stockwatchindex does not think so. We believe that 2018 will be a crucial year for Marijuana in the United States, producing strong ROI for investors, especially in California. This is the year when the market will separate the potential winners form the losers.
It is our expectation that most marijuana stocks may continue to decline until year-end. The majority of these stocks is currently trading below their year-to-date high and most likely will be targeted for tax loss selling at calendar year-end, resulting in even lower share prices. In contrast, expectations based on the further legalization of cannabis nationwide and especially in California, beginning on January 1, 2017, indicates a "Double Buying Opportunity" latest in early 2018.
Identifying Buying Opportunities
Identify the stocks with "high volume dumping" or downside over-reactions, indicating tax motivated selling into a rapidly expanding market. These are the stocks that will recover, quickly and significantly in early January, some maybe before the end of this year, reflecting the increasingly positive public sentiment towards Cannabis and the improvong legal landscape in the US, Canada and especially California. We all assume and hope that the Federal Government will stay on the sidelines.
The "Buying Effect"
The potential for public access to recreational marijuana will increase from roughly 20% to an expected 40% of the population of North America, an enormous market expansion and upside, which in our opinion will create a significant "Buying Effect". Timing the market is always difficult, but this is one big opportunity to do just that, right after the tax-loss selling has stopped. Watch individual stock performance closely, so you don't miss that famous "bottom"
Livewire Ergogenics Inc (OTC:LVVV) is one of these stocks in our opinion. The Company is run by an experienced management and consulting team, has expedited the implementation of its business plan and Its low share price (undervalued in our opinion) should represent a clear opportunity. LVVV is focused on identifying and monetizing current and future trends in the health and wellness
industry. LiveWire's strategy entails acquiring, building out and leasing turnkey cannabis properties, selling location-specific compliance packages and offering financing solutions for select candidates
in the industry.
LiveWire's model includes the legal cloning of high-quality cannabis strains for research purposes and the distribution via its licensed Partners for medical marijuana. LiveWire's goal is to produce positive
medical results, establish a quality control and dosing verification system of zero pesticide products for the development of quality brands and the licensing of a range of high-quality cannabinoid based
products and services.
LiveWire has just leased a 4-acres property in a commercial agriculture zoned region of Southern
California, completed the set-up of the Company’s first Greenhouse and is ready for production.
Greenhouse number-one will be operated by the horticulture experts at The Greenhouse Collect, a non-profit organization serving medical marijuana patients since 2014. The property is located in
Southern California and is large enough to host five, large and fully functional greenhouses. This four-acre location will serve as LiveWire’s flagship project, according to its master plan to establish secure,
campus-like settings for every LiveWire location populated with multiple greenhouses and research facilities.
LiveWire currently does not grow, harvest or distribute marijuana that violates
any local, state or federal laws.