Investment "Logic"

After watching the stock drop to the low 30s and start jumping back up with what appears to be a turn in the overall market, I have decided to purchase one ninth of a position of Canopy at a price of $36.50.  This is a very small position to take advantage of prices significanctly below my cost basis while also leaving me room for the stock to go back down further - given that I am making this purchase at a time the stock is up over 8% on the day.  I continue to belive that Canopy is the best - potentially the only direct pot play and I play it as a speculation for long-term gains as the company continues to gain footing and take market share of failed companies in countries where cannabis is legal as well as being a leader into the next countries that legalize it.  Additionally, I am not convinced the stock is done going down.  I still believe prices in the 20s are possible, and as such this is why I'm taking a more concerted effort to buy smaller positions....

On October 19 I filled another third of my expected position of Canopy Growth Company at $48.50.  At the time I placed the order, the stock was showing a strong floor in the $45 - $48 range and was really struggling to get below $48.  Given the stock had recently run up to the mid-50s and Canada's prohibition ended two days earlier.  I felt the amount the stock pulled back seemed reasonable on the sell the news situation and dove in.  We now know that choice was rather early, given the stock is now in the 38s after having hit as low as the 36s.  Given the current market conditions and overall chart health, I'll be sitting back for a bit to see when/where this stock stabilizes before I think about filling my position.  $35 is certainly a price area of interest, but I've also read that the stock could get down into the 20s.  It's important to remember that a huge portion of this company's value is in cash from investment from Constellation Brands....

Last week I bought an initial position in Canopy Growth Corporation at a share price of $50.  This company is an early entrant to the Canadian Pot industry as a producer of both medical and recreational marijuana, a new market that opens up the first of October, now that the country has legalized it. Pot stock have been hot - really really hot.  There's no doubt that many of them, Canopy probably included, are over valued right now.  While I was looking to speculate there's a lot of publicity in this area right now.  I would say that I felt Canopy was one of the better stocks, though we all know there's another out there that has been surging in astronomical proportions due to shortage of stock availability.  The nice thing about Canopy is that they're adequately capitalized and won't likely look to raise cash through offering more shares.  However, there are a lot of other companies out there that will need to and even more that will be looking to go p...