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Walmart Again

On Monday I did a blog on buying this week's Call options on Walmart. Today is now Thursday and there was a big crash in the markets yesterday. For example, Tesla had an insane selloff. Here is what happened to it. Today it is slightly rebounding as are so many other stocks. Thursdays however as oftened mentioned are not a good time to be purchasing one day options on stocks that expire the next day. So how is any of this revelant to Walmart's trading today? Well, there was a whole bunch other stocks that got knocked yesterday that might now rebound back up again together. Look at the chart below of Walmart and see how it was off a couple of dollars yesterday. Could you buy in now and get out later in the day? Fantasy thinking, one might say. Could it sneak up even one dollar? Now this. The stock mid morning is now merely trading sideways. Now look at this, the 93 series of Calls. (On Monday we were looking at the 94 series of Calls). At 10:22 a.m. the stock is up six cents...
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What Happens on the Day After a 100 for 1 Reverse Split. Are Shareholders In A Better Position? SugarBud (Symbol SUGR)

Management was sleeping at the switch today to allow their share price to drop 24% on a volume of only 30,000 shares on a day just after a 100 to 1 reverse split. With somewhere over five million shares left outstanding a drop of 24% wipes out about one million dollars in shareholder value. Lets add to this storey the following information. I also note that there was some good news. Yet then again, how good really was this news?
So now what? Check out Sedar. Look at how SugarBud is filled to the rafters with inventory that is not going anywhere and look at how their operating expenses are double what their gross sales are. You can't run a business that way. In a recent blog I noted how "Eve and Company" (Symbol EVE.V) near London Ontario Canada also has inventory problems. There is nothing special about growing weed. Anyone can do it. It's an industry of the survival of the fittest. When I looked at the Mendocannabis.ca website I came across "Nextleaf Solutions" (symbol OILS). They also supply product to Medicibis and they recently raised over three million dollars in a new issue. Here now is more about it. Do your own homework. The marijuana space is a dangerous sector of the market to be in right now.
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*** A final note on the root of this problem. Prices derived from growing the product are falling. To learn about an interesting company who is busy trying to get ahead in this space go the the Sedar website and read the news releases on Sundial. They never seem to stop in trying to reinvent themselves and their daily trading volumes are impressive.
+++++++ A Feb 28th update. If this was to happen and this happens and this happens... SugarBud now has a new friend.
*A 2022 update. SugarBud did not survive.

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