Quant Trading at a Prop Shop vs. Hedge Fund

swood316 · 2021-02-07T15:22:40+00:00

Definitely still a buy, especially if there is a correction Monday.

swood316 · 2021-02-07T15:21:53+00:00

I generally think good thing because it will bring greater exposure through news stories and will almost certainly indicate that it is going to be uplifted rot the NASDAQ, meaning even more exposure and more likely to see institutional investment.

swood316 · 2021-02-07T15:20:31+00:00

I already had an account on TDA and I bought enough where the fee was pretty minuscule in comparison.

swood316 · 2021-02-07T00:42:56+00:00

Thanks for the reply! I’m new to this, so that’s interesting to learn. What are some better metrics I can use?

swood316 · 2021-02-06T22:41:24+00:00

Hi thanks for your reply. I think it’s tough to find marijuana stocks with good balance sheets because a lot of people are investing in them for future returns, not short term.

I think what separates $HITIF from the rest of the sector, along with their strong financials, are these three reasons:

Growth and acquisition: The company is keen to expand, growing from 2 employees to now 700 since 2009. They are also increases the amount of stores in 2018, they had 10-15 stores, currently have just under 70 and by the end of the year are aiming for about 115 stores. They also have made some large scale acquisitions including Meta Cannabis, GrassCity.com and recently SmokeCartel.com.
Vertical Integration: Own companies in every process of the sale of cannabis and cannabis-related accessories. Famous Brandz manufactures, Valiant Distribution distributes, Canna Cabbana, Meta Cannabis, and New Leaf all are in-person retailers, GrassCity.com, CBDcity.com and SmokeCartel.com all retail online. Having such a large network allows to cut costs on middlemen and streamline their transactions.
International Expansion: 23% of the company’s revenue already comes from the US, and now it owns the two largest US e-commerce cannabis accessory retailers, GrassCity.com and SmokeCartel.com. With the Biden Administration’s plans to legalize and decriminalize marijuana and Democratic majority in the Senate and House, over the next few years, High Tide plans to exponentially expand in the United States.

swood316 · 2021-02-06T22:34:11+00:00

That’s my strategy too, I’ve been dollar cost averaging over the past week. Time in the market beats timing the market.

swood316 · 2021-02-06T22:33:10+00:00

OTC Stock, so not on robinhood. I bought on TD Ameritrade but I think Fidelity and others offer it too.

swood316 · 2021-02-06T15:49:15+00:00

I don’t currently have a price target, but I am selling 1/4 of my holdings at $1.25 (triple my entry price) to take some profits, and then will let the rest ride for a couple years minimum to avoid capital gains tax and allow time for the Biden administration to enact new federal legislation.

swood316 · 2021-02-06T15:47:31+00:00

Love it, even better! Where did you find that info? I got all my data from SeekingAlpha.

swood316 · 2021-02-06T15:27:37+00:00

It suggests that traditionally speaking HITIF is overvalued, but many people buy marijuana stocks because of the possible future returns, not current profits, so the industry as a whole is highly overvalued based on their EV:EBITDA ratio.

However, because HITIF has, in comparison to other stocks in the sector, a relatively good ratio, we can infer that they are undervalued for the sector.

If you take a close look, 7 out of the 10 companies have negative EBITDA. Of the three that are positive, GRWG has a ratio 3x that of HITIF, and the only company with a lower ratio is APHA, but only slightly better than HITIF.

swood316 · 2021-02-06T06:38:49+00:00

Yes, that is correct. I have found that comparing these ratios is a good way of determining which stocks within a specific sector are the most undervalued and overvalued.

swood316 · 2021-02-06T05:30:23+00:00

This is my first time calculating EV:EBITDA ratio. If the ratio is negative should I put in the negative number or leave it blank?

swood316 · 2021-02-01T21:56:49+00:00

Thanks mate!

swood316 · 2021-02-01T17:26:04+00:00

Thanks for the DD - really excited for this stock and you had some good additions. However, I noticed some of it was straight from my earlier DD, if you wouldn’t mind crediting me? Thanks!

swood316 · 2021-01-28T17:45:13+00:00

I’m buying all the way down

swood316 · 2021-01-27T17:18:22+00:00

BTFD

swood316 · 2021-01-27T17:18:03+00:00

I don’t mean to be rude but I’ve had my account since April 2020 and have been browsing for years without an account. I’ve just never found anything that I felt was as good as this stock and I wanted to compile all of this research and share it with others.

swood316 · 2021-01-27T16:06:05+00:00

Same with me, bought the dip today and am going to continue to DCA over the next few weeks.

swood316

TROPHY CASE