This is just a VERY rough sketch of what I believe could be very much possible in the coming 6 months before true Canadian recreational legalization. I think that this sort of pattern is potentially VERY possible across the whole sector, but Cannabis Wheaton is an interesting business model that relies heavily on the production of its "subsidiaries."
I think that were coming up on another mini-mania where people who've invested in the sector in the past and bailed will be looking to get back in before the next boom. As with all investing, we are relying on people being late, dragging their feet and being indecisive in order to sell the stocks weve purchased earlier to them much higher.
As you can see, weve already started to see the Daily 9EMA turn upwards and with a steady stream of good news from many of the holdings of CBW, I don't see us crashing and burning from here. CBW has its fingers in MANY strong LPs and with a Market Cap of ~$550M its upside potential is astronomical.
The following assumptions were made:
I expect to see approximately 10% increase in the peak of the 9EMA once more between now and the August medium-soft "Green Day." I also expect to see a strong bounce off the 100MA late June, early July before the final run-up. I believe we could then see a solid 30% increase from the peaks of the MA going into the final days of the legalization and then after that, all bets are really off. Things may continue or things may crash back down to the 100MA range. We will have to play that by ear as it come.
Feel free to comment about your thoughts. Again, this is a VERY rough estimate of what it COULD look like but based on how the industry as run before, I think its very much in the realm of possiblities.
Good luck and HAVE FUN!