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McDonalds Again And A Follow Up To Yesterday's Blog..

Option traders on Friday mornings just want to be in and out in the first hour or so of trading on short term options. In the second half of the day most of the action calms down. McDonalds sold off a little bit yesterday afternoon and firmed up a bit towards the closing. Could this "mostly downward trend" continue? Here is a partial look at some of the opening bell's activity. Today is a Friday however let us first look at how the stock traded yesterday. Now a look at it's trading pattern at 9:32.22 a.m. The McDonald stock jumped up $4.98 and the 317.50 Puts we followed all day yesterday which are now "out-of-the-money" acted accordingly. They shrunk in value. During the fist 2.22 minutes of trading they traded down to 34 dollars a contract. Now this. In the first three minutes of trading the stock jumped a bit and then started to come off a touch. These Call options where not attacting all that much attention. The bid and ask jumped up on no volume. ...
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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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