Executive Director Greg Miller answers more of his fellow members’ questions. Take a look to see if he answered one of yours.

Welcome to another edition of our weekly Q&A. We got a lot of wonderful comments this week, so let’s jump right in.

Remember, I can’t offer any personalized investing advice, but your participation is what takes the National Institute for Cannabis Investors to the next level, so please keep the questions coming.

I want to start this week with a message we got from Don C. It’s not a question, but it’s important nonetheless, as it provides me the chance to direct some well-deserved credit to the members of the NICI team.

Don writes: “You may have Danny Brody, but you have given all of us at NICI a ‘top-of-the-line’ Customer Service Department. Not once but every time I have called for help, Emma, Cody, Michael, Chris, just to name a few, have given myself the utmost of attention, help and have answered ALL my questions with pleasure.”

I’m thrilled to hear that, Don. What you read day to day comes from me and, increasingly, from a large and growing editorial staff. But it takes a lot more than us to include you in the National Institute for Cannabis Investors. The Institute is blessed with outstanding people putting together our website, producing our videos, designing our logos and reports, keeping up the NICILytics Database and IPO Hotlist, and more. And you’re exactly right that among our biggest blessings is the outstanding customer service team which helps our fellow members with whatever they need. They proved themselves literally on day one – the response to our American Cannabis Summit event exceeded our wildest expectations, and the customer service team put in a lot of overtime to make sure that everyone who wanted to become a founding member of the Institute was taken care of as soon as possible. That dedication continues every day, and I’m happy to take this opportunity to say the same thing you do – thank you!

Here’s a question about recent movement in stock prices:

Kendall B. asks: “What role did short squeeze buying and momentum money flows play in the recent stock price movements up and now moving lower? I’m wondering why you have not addressed those implications, or perhaps if you think there are any, in your analysis.”

Kendall, excellent question. A lot of market commentators like to talk about short squeezes and momentum flows. And I generally don’t.

So what gives?

I believe that the effects of short squeezes and momentum plays are minor factors in cannabis stock pricing. The fact is that it is very difficult to short many cannabis stocks, and even the most liquid ones like Canopy Growth (NYSE: CGC, TSX: WEED) show very small short positions relative to other high-volatility sectors like technology stocks. And looking at technical charts, I just don’t see a relationship between changes in short positions and the stock’s price. I don’t see any persuasive evidence of momentum players moving these stocks, either.

And that makes sense. The cannabis sector right now is very much driven by news, and both shorts and momentum players rightfully fear news – they tend to make their money from trading patterns which are interrupted by news.

As the cannabis market matures – as institutional players get more involved, as news becomes easier to anticipate, as options open up on more cannabis stocks – we can expect shorts and momentum players to become more important to short-term price moves (though not to the longer-term story), but I think that time is probably more than a year away.

Ron F. wants to know: “How often does the NICILytics list change?”

Ron, NICILytics is the basis of all of the research we do at the National Institute for Cannabis Investors, and we want our elite members to have the latest, most accurate information available on all of the companies in the database. That’s the entire reason we decided to release our raw research to the investing public.

So it changes as often as it has to! We upload changes at least once a week, and more often if events warrant. We add a few new stocks every week, for example. But we also update the names already on the list whenever there’s a change in the company which requires us to say something about it. So every time a company announces a new stock issuance, we update the share count. We also update the share count, along with revenue, adjusted EBITDA, and cash position every quarter when it announces results. As a company answers the questions in our “What to Look For” section, we update the report and add new questions.

We will also update the database when we’ve done new research on the company. For example, this week I did some additional work on a company we had rated a 4. I did not like what I saw, so I had our analysts rewrite the NICILytics report entirely and downgrade the company to a 2.

I will say that the higher-ranked companies get a fresh look more often than the lower-ranked companies. Once we’ve determined that a company isn’t very good, it takes a lot for us to reevaluate it. A couple of press releases won’t do it, but an earnings blockbuster will. For the better companies, we’re constantly looking at them for possible inclusion in the Cannabis Investor’s Report model portfolio, so we notice small changes more than we do with a company we’re not watching as closely.

I’ll be back next week with more answers to your cannabis investing questions. Until then, keep the comments and inquiries coming, and enjoy the long weekend.

Greg Miller
Executive Director, National Institute for Cannabis Investors


Comments

48 responses to “More Answers to Your Outstanding Questions”

  1. My son has ADHD I would like to replace his ADHD medication but something more healthy and more beneficial. Is 9 years old it kills me everyday to give him something called methylphenidate which is no different than Adderall. The reason why I am a part of this is movement is to seek help for him and find a company that as a product that will help him.

    • Mr Cunningham has a product that will help ADD and ADHD patients I would like to know more information concerning this product.

  2. I Ditto the answer Don gave in the above article about how helpful everyone is at the Cannabis investors office

    Thanks
    Bill

    Have a Great weekend

  3. Greg,
    Many of our cannabis stocks are traded on both the Canadian exchanges and the American exchanges. If one of our stocks went up or down on the Canadian markets today, with the U.S. markets closed, how does that impact tomorrows opening price on the Nasdaq, OTC or New York exchange?

  4. I’m trying to get this thing rolling but I work 7 days a week 10 hours a day really not had the time to set up an account with a brokerage firm what is the quickest way to do that. Can it be done after hours. Thank you for your help. Do I have to send this

  5. This is my first time in looking at stocks on the market and serious about learning how to work with NICI. Will I need to use a broker and how much do they charge.

    Larry S.

  6. Greg I know your team has a lot on your plate. But here in the US since so much of our progress is predicated on full legalization. Is it possible to obtain a more regular update on that front? Thanks you so much for all that you and your team do!!!

  7. There are many brokers offering 24/7 services online to accommodate those with long hours. 24/5 (24 hours 5 days per week) trades are also possible. Call NICI office to get a list of brokerage firms.

    • Wait. I read on NICI website that Etrade does not currently offer Canadian stock trades. Are we not trading on CSE? Anybody please reply?

  8. I know absolutely nothing about investing, in fact, I’m not even sure I have the capital to invest
    or how I get started with it, All I know is I’ve known for years that cannabis is one of the best
    medicines on Gods green earth, put here for the benefit of mankind, made illegal by IDIOTS
    and turned into a money machine for Illegal activities. finally, it’s legal YAY I live in Colorado, but I really need information on how to invest, is why I joined this Thread. I shall await your answer, I guess I, first of all, have to hire a broker. so I shall look forward to assistance.
    Thank you
    A disabled Veteran in Colorado

  9. I see that CBD company Green Roads is selling over the counter here in WV. Can you tell me anything about them. I have not seen any articles on them and they are not listed in nicilytics. Thanks

  10. Amertrade iseasy to get in and set up in 15-20 minutes then they will guide how to tx funds from your bank to amertrade you can get all thehelp you need from their new customer line. also you get 500 transactions free the assistance in carrying out a trade and best to use their advice when making their trade on the mechancs ofthe trade

  11. it took me almost all day (about 6 hrs.) but I finally got on the computer and set up my account with TD Ameritrade account went to the bank and opened a separate account at the bank and then came home to fund the TD Ameritrade account and was informed I could trade as of today on the NYSE or the NASDAQ but to trade OTC I needed to wait three business days until the funds would be available on my TD Ameritrade account before I could any stock (OTC) over the counter. So I am looking forward to Thursday February 28, 2019 for my first investment in my life. I recently stopped working plan to be on my computer at least 4hours each day. I am 75 years old a retired Air Force Disabled Veteran, praying to GOD for his guidance on the venture for all us NEWBIES on a small budget.

  12. How Do you know how many stocks to purchase. New to investing and don’t know how many to buy of one particular stock.

  13. I noticed you did not answer the questions on how to access the vault. What’s the problem? I have the same question. I joined yesterday as an Elite member with all the promise of accessibility. I have not heard from anyone how to get started and where to go to access anything. Too early? or am I not registered? ???

  14. Feb 26 2019

    I am 78 yrs old been trading for about 8 yrs I have tried all of the Cannabis company that you can make a million dollars. I have to say this is the best one, I am not a Elite member.

  15. Thanks for all your advice and insights, much needed. Was interested in finding out more about American Green. Seems like they are revamping their vending machines… are they rolling them out? are they any good? Web site says they are completing a grow center. Very very low stock price. Are they
    a shady operating company? 0 rating on NICI… Any updates?

  16. Hello Greg, I am also very new to trading and investing. Where can I get information that will help me to understand all of this. I haven’t figured out if I have made any profit from my investment yet. Do I need a stock broker? I would like to invest more but will wait until I am better educated in the stock market.

  17. My brokerage firm charges a $50 fee to purchase Canadian stocks. I’m a small investor, and those fees add up quickly especially considering so many of the stocks recommended are on the Canadian Exchange. Is there a firm that does not charge those fees? Or is it possible to deal directly with the CSE?

    • Open an account with Firstrade where all trades are free whether it’s US or Canadian. Their support staff is great.

      Also, you could use TD Ameritrade. They give you the first 500 trades free whether it’s US or Canadian. They also are great.

  18. Just responding to everyone that has asked about finding a brokerage company. This is just my own personal experience btw! I recommend Schwab online Brokerage where you can apply online and it takes 10 to 15 mins.. It is a great site for beginners as they provide all kinds of help resources and tools for you to use, most of which are free. Once you have your account opened and funded you are able to begin your investing. You can do it on your own or they various types of services if you want them to do it for you.

    It really is a great investing website with everything you need to manage your investments. I know for me being new to the investing world it was so overwhelming and was pretty much lost on what to do or how to do it but the Schwab online broker really helped me. So I just wanted to share that with others who are feeling the same as I was. Good luck and happy investing!!!

  19. How much do u have to invest to make money? They didn’t have such high prices when we first started with cannibus!. How much money do u have to have to make anything in this market. It appears that it is only for the rich!
    9

  20. do you know any thing about hemp inc. when the shares when mpx bioceulical sold and when to Ianthus have not got any shares yet. will we lose shares we have. do you no what mpxi shares are going for.thanks Bud knox

  21. Hi Greg

    Given cost economics will ultimately separate the “winners from the wannabees,” which companies are likely to be the lowest cost producers? Your recent comments about Latin America and other third world zones around the equator would seem to point to those that are focusing in those regions for production. Of course, strong management track records from similar markets would be the other important attribute as you have pointed out before. So be interested in understanding which companies have the best combination.

  22. I have a question. In your experience relating to time of day, when is the best time to buy or sell?

  23. HI GREG, can you possibly tell me how to reach Michael Dor in Israel, I am interested in investing there.

  24. Why do we buy half now and half later? I would think they would be cheaper before they go up, but I’m new at this and thats why you make the big bucks. LOL. But seriously I’m curious because you guys recommend that a lot, I noticed.
    Thanks for all your help you guys are awesome.

    • This isn’t as much about investing as it is the actual product. Does anyone know which companies offer the highest concentration of CBD in their products? I’ve seen so many different opinions but I would really like yours. Thanks so much!!!

  25. This comment is for Mary Walker in regards her question about cannabis RX for Multiple Sclerosis. Aftar Dillon..CEO of Emerald Health Theraputics recently announced positive results in trials of a new drug for treating MS as well as other nerve disorders. They have a synthetic cannabanloid moleculke that they have managed to tweak so that it exactly fits the receptors in the brain that cause the plague…its called meralin or something like that…to coat the nerves in ways that produce MS. Not only does it inhibit new growth but actually causes the merilin to recede….go away!!
    That sounds like a cure for MS to me!!!
    Still years of trials and approval by the FDA but…YEA!!!!
    who knew cannabis could be so good for us?!

    • I read that article and called the company in Canada. This is very exciting and I’m looking at being a test person when they reach human trial status. I have CIDP, very similar to MS . I’m 67 and this issue that I have has made miserable . Ready to jump in on these studies.

  26. Hi Greg.
    Since I am already in with you as an Elite member, and I am very interested to becoming an Angel Investor, can I upgrade to become one? Thanks

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