The other day, I was speaking with someone from the financial side of the sector, and we were discussing the hard pump that’s been around some of the US companies. The vault that share prices have taken since early August has been something else, and there is no lack of folks around predicting lots more of that yet to come.
Regarding published financial analysis in legal cannabis, there’s a pretty finite list of providers. We are the only outlet I am aware of that is independent. A few months ago, someone affiliated with another media outlet posited publicly that TheCannalysts publish price targets, and that we recommend stocks. Neither is true. I called them out on it. We eventually came around to shop talk after they removed the claim.
Two companies came up in that discussion: C21 Investments ($CXXI), and Village Farms ($VFF). Regarding the former, an increase in mentions and media around the re-financing of Sonny’s debt was in full ramp. It had been signalled for a month or so (I wrote about it at the end of June). By mid July, $CXXI was publishing daily transaction numbers in financials (they were increasing, natch), while concurrently messaging that all possible awful things that could go wrong with their creditor would be right as rain in no time flat:
That discussion ended up with them suggesting that there’s a value play in $CXXI and a re-financing, and that while ‘speculative’, it presented a very good risk/return profile. That conversation took place on August 8th of this year.
After that date, unbounded optimism and a continual repetition of that very story dominated retail investor channels. The pillow was fluffed right on queue.
I hadn’t heard much about $VFF either (at least beyond the usual) until the past couple of weeks. Now, it’s everywhere. To an actual point of coming across statements that make me cringe. With timelines around it no less.
That kind of shit really pisses me off. It’s pure, unadulterated pump. With disclosure as transparent as concrete.
The equity is the product that’s being sold in both these cases.
The only known returns are those calculated by the people writing the beginning, the middle, and the ending of the story. Believers can buy in, ride an expected wave….makes some bucks….there you go. Or maybe lose some, it happens right?
To subscribers: I know of three separate cannabis financial information outlets that began running the $CXXI ‘story’ hard in mid-July. And nothing – I mean nothing – has changed fundamentally regarding C21 Investments before or since then:
Hey, caveat emptor right? And maybe you view this as an opportunity to step in and make that 100% on $VFF. It’s your money after all. I strongly recommend you avoid this kind of shit like the plague.
This crap is the product of a well oiled machine. It’s got money behind it, it crafts well thought out narratives, and it ties the interests of company owners with advisors with media outlets together. In concert, uniform messaging can shape perception, which is its’ intent.
Just know, that machine will look after itself first and foremost. Investor interest and money is the gas it runs on.
Moreso, that machine won’t tell one what they’re really needed for, or what the machine is actually doing. Once that machine does what it’s supposed to though, you and your cash are nothing more than spent fuel.
The preceding is the opinion of the author, and is in no way intended to be a recommendation to buy or sell any security or derivative. The author holds no position in $CXXI or $VFF.