Contrarian IIPR Theory: Pot Stocks Hot Again in a Cooling Market
As investors seek alpha plays outside of the S&P500 and DOW30, I expect that the pot stocks will heat up again. IIPR is a great one, especially since they're a REIT and have to deliver profits to shareholders in the form of dividends, but also because its one of the few pot stocks to make it on to a major market index: the Russell 2000. This is definitely a contrarian play, and I don't like to make too many of those, but I don't think I'm standing in front of a train on this particular one.
Technicals are weaker here on this one. I'm long, but it's got me nervous and watching. I'm definitely making a contrarian play here, so you may want to wait a few more days to see if my theory plays out, but I expect that their earnings hit (no surprise up or down, very rare!) is going to be a catalyst for investors seeking high growth alpha stocks beyond the traditional growth options. Other pot stocks are doing terrible after earnings calls, but I suspect that this last one is going to be the catalyst for IIPR to start climbing back up that chart again.
Technicals are weaker here on this one. I'm long, but it's got me nervous and watching. I'm definitely making a contrarian play here, so you may want to wait a few more days to see if my theory plays out, but I expect that their earnings hit (no surprise up or down, very rare!) is going to be a catalyst for investors seeking high growth alpha stocks beyond the traditional growth options. Other pot stocks are doing terrible after earnings calls, but I suspect that this last one is going to be the catalyst for IIPR to start climbing back up that chart again.
Trade closed manually:
I let it go. It's down, but not by much, but I'm not comfortable trying to speculate on high growth, high risk industries right now with the current market conditions.