For those that follow my analysis regularly, you know that I do not cover penny stocks or anything thinly traded. The reason for this is because it's simply not necessary to generate big returns trading penny stocks. I would MUCH rather trade options on large cap stocks any day. No question about it. I also don't rely on fundamentals because I am a technical trader, however, all of the stocks I pick to trade are considered fundamentally strong by all metrics (consistently strong EPS growth / rapidly growing revs /high RS in their respective category, etc).
But now I am looking at these penny stocks in the magic mushroom sector. Medicine using psilocybin (active ingredient in magic mushrooms) is intriguing because it could be a powerful theme. I love finding themes that haven't really hit mainstream yet (think weed stocks in 2017, crypto in 2016, Electric Vehicles, SaaS, etc). Themes generate buzz and stir hype, which is key for parabolic moves.
Of all shroom stocks I've looked at, MindMed (chart above) looks best to me on a technical basis. It has a clear invalidation point (so risk could be measured) and it just broke out. It was the first psychedelic medicine company to list on the Canadian exchange in March 2020. Kevin O'Leary from Shark Tank is invested in it. I always found Kevin to be the savviest in the room, so the fact that he's involved says a lot to me. Click here for their investor deck or click here for the website.
Here are two other companies in the space:
2) Compass Pathways, backed by the Facebook investor Peter Thiel:
3) And Champignon Brands:
I don't like buying dips like these that don't have enough history, so the only one I'll be buying in small size (no more than 4% of my capital) is MindMed. As someone that's done shrooms in Amsterdam, in the mountains while camping, and several other amazing trips, I am a big believer in the positive outcomes magic mushrooms could bring. Bitcoin actually clicked while I was on a shroom trip in 2015. Fun times :)
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I am still long with a stop at the line:
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Very bullish short term development. I want price to remain above the curve. Still long:
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Nearly a 2x for us with today's explosive move. I am raising my stop to 1.58. Letting it work for as long as it wants to:
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Still long this name as it's acting well. Tightening stop on 60% of the position to red line, remaining position will be ride the MAs:
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Unreal move in this stock. Lifting stops higher now:
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Still long and still drawing my lines because that's what helps me stay put in the position. The big money is made from riding winners for as long as possible. It's the hardest thing to do and it's the most rewarding thing you could do.
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Still long. Expecting 3.50 to hold then I will monitor for profit taking in the next few days:
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Still long and not worried here. Tagged some critical structure today. Textbook retest.. only backtesting the 9d MA. Cooler heads prevail:
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Reversing off the level I drew. Raising my trailing stop to the red line. Will let it continue working. Exiting a highly profitable position is one of the hardest thing to do in trading. It's probably where our emotions are tested most:
@Lanmar, Reversing off the level I drew. Raising my trailing stop to the red line. Will let it continue working. Exiting a highly profitable position is one of the hardest thing to do in trading. It's probably where our emotions are tested most: 100% Agree.
i bought at various price but mostly at top 4.70 during recent run and got busted :( still holding though, you see any short term upswings over 4.50? hope the nasdaq listing comes soon :)
Lanmar
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@imransmail, hmm tough one. Last week's low needs to hold. Stock needs to reset and consolidate. Unlikely to see a short term swing unless we consolidate tightly above 3 for several weeks at least
whufcny
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yeah this is a healthy pullback retesting support, I picked more myself, loading up on this puppy
seekingalpha.com/article/4392873-mindmed-severely-undervalued-massive-upside-yet-to-come