Can it be, that what I am witnessing today being transacted by a company within the cannabis (marijuana) market space in Canada is a metaphor for a lesson I learned from a good friend of mine, a martial arts master?
About my lesson.
While performing the movements of the ancient Chinese system of T’ai Chi, my master-teacher explained that the slow, precise, deliberate movements of T’ai Chi were akin to the “…energy being added to, and stored within a battery. There when you most need it…” Can it be that there is one cannabis company in Canada that is doing just that? Slowly, deliberately, precisely going through the motions to quietly build huge amounts of stored “energy” to be unleashed at some near-future time?
In financial terms, is this company quietly going about acquiring all the resources it needs to become a fathomable powerhouse in the GLOBAL cannabis marketplace? Granted, its every move is documented in the highly public business press. But by “quietly”, I suggest that the leadership feels no need to be accountable to the shareholders for immediate profits or immediate stock price boosting tactics as so many impatient, greedy traders and investors would wish. Instead, the leadership shows strength by spotting, acquiring, integrating what it needs to be a possible contender for the de facto standard in the global cannabis space.
I think that is exactly what we are witnessing. A company going through the precise motions, much like a T’ai Chi player.
I am proud to say that, yes, I OWN COMMON STOCK in that company. If I’m correct, I expect this company to do well over the next 5 to 10 years. But, like any other stock pick, it’s a hunch, a guess, a GAMBLE, a risk.
Up to this point, and likely for the foreseeable future, financial analysts are busy criticising the leadership of this company for “diluting shareholder value” because it has been making, and likely will continue to make, acquisitions of strategic partners by printing and issuing more stock certificates. And, of course, with each round of stock certificate printing, the value per share drops a wee bit. If I am correct, though, [to continue with my exercise analogy], this is a lot like an athlete suffering a minor setback after bumping into lactic acid barriers and using sheer determination to push past those barriers in preparation of the muscles for the next time. After recuperating, the athlete is able to go further, faster, stronger, during the next round.
Only time will tell whether or not my observation is correct. Only time will tell if I spotted a clever, strong company in the cannabis market space. In a few years I will know the answer to my question, “Is this company practising the financial equivalent of T’ai Chi in preparation for the greatest breakout success of all cannabis companies?”
[And, “No. I have not been smoking any marijuana. I don’t smoke. But I do want to caution you that you should seek appropriate financial advice from qualified financial planners or analysts prior to making any changes in your investments/savings. This Nugget is not intended as a recommendation, but is intended only for information and entertainment purposes.]