As we predicted in our previous write up "Expect a Big Rebound on TSX Venture, CSE and Cannabis Stocks", cannabis stocks have rebounded nicely since tax loss selling season has passed. Canopy Growth Corporation (CGC) (WEED.TO) increased 12% on the last day in 2019 before a pullback on Thursday while many other cannabis stocks exhibited a similar pattern.
Our top pick Kalytera Therapeutics Inc. (KLY.V) (KALTF) has been creeping upwards. There is consistent buying on the large ask at 4.5 cents with the bids increasing at 4 cents in Canada. But there has been particularly strong buying activity on the KLY.WT.B warrants. On November 27, 10 million warrants were bought at the ask at 1 cent. Since that time there has been slow but consistent buys at the ask. The once rather large ask at 1.5 cents is down to around 700,000 volume for sale, or just over $10,000. That compares to 900,000 on the bid at 1. This is the first time in months that the bid at 1 cent was stronger than the ask at 1.5 cents. For those who want cheap leveraged upside, the opportunity to purchase warrants at 1.5 cents might not be around for much longer. But even at 2 cents we think the warrants are cheap. Read our article "Buying Cheap Cannabis Warrants: Kalytera Looks Ready For A Run After Getting Unsolicited Offers" for more details. We are up to 869 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. You can follow us on Twitter @StockTradePicks. We have over 4,000 followers on Twitter.
The buying interest on the warrants while the stock has been relatively flat is a good sign. This means implied volatility on Kalytera is increasing. People are buying up the warrants, which are worthless if the stock is less than 6.5 cents by the expiry date in April 2022, because they are speculating that the stock price will be well above that price by that time. We have seen this kind of activity on call options for biotech stocks leading into key dates with the FDA or on expectations of trial data. Options traders will buy up call options in hopes that a meeting goes well or that data is statistically significant. Traders are reacting to a series of news updates that strongly implies that Kalytera will be getting some kind of deal done within the next several weeks. We already know that the data on Kalytera's Phase 2 trial for GVHD is good.
KLY has repeatedly stated that it is in discussions with multiple potential partners for its GVHD program and that it expects a deal to take place some time in Q1. Kalytera is in a great position to get caught up in a bidding war. The company released its Phase 2 results for CBD to treat GVHD over the summer. The trial went so well that the company cancelled its high dose cohort for Phase 2. We think that once a deal is in place, the company will move ahead with Phase 3.
2019 was a rough year for cannabis stocks, but things are slowly starting to turn around for some companies like Kalytera. As we look ahead to 2020, TradeMiner may be able to help as it identifies seasonal trends and market cycles. Microcap Millionaires finds the next big small cap plays in weed and other industries while Addicted to Profits makes trades from a Canadian perspective. You can also find some insightful information about CBD here.
There are also some good books available such as:
Stock Investing for Beginners: Marijuana Stocks
Make Money Online With Cannabis Stocks: Learn This Basic Strategy and Build Wealth With Cannabis Stocks
Beginner's Guide to Investing in Canadian & US Pot Stocks
Marijuana Stock : Investing in Marijuana Stocks for Passive Income
How To Invest In Cannabis or Marijuana Stocks - Cannabis Investment Group
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
Our top pick Kalytera Therapeutics Inc. (KLY.V) (KALTF) has been creeping upwards. There is consistent buying on the large ask at 4.5 cents with the bids increasing at 4 cents in Canada. But there has been particularly strong buying activity on the KLY.WT.B warrants. On November 27, 10 million warrants were bought at the ask at 1 cent. Since that time there has been slow but consistent buys at the ask. The once rather large ask at 1.5 cents is down to around 700,000 volume for sale, or just over $10,000. That compares to 900,000 on the bid at 1. This is the first time in months that the bid at 1 cent was stronger than the ask at 1.5 cents. For those who want cheap leveraged upside, the opportunity to purchase warrants at 1.5 cents might not be around for much longer. But even at 2 cents we think the warrants are cheap. Read our article "Buying Cheap Cannabis Warrants: Kalytera Looks Ready For A Run After Getting Unsolicited Offers" for more details. We are up to 869 followers despite not giving out a lot of alerts, a fact that we think is indicative of a successful, diligent and prudent stock picking history. You can follow us on Twitter @StockTradePicks. We have over 4,000 followers on Twitter.
The buying interest on the warrants while the stock has been relatively flat is a good sign. This means implied volatility on Kalytera is increasing. People are buying up the warrants, which are worthless if the stock is less than 6.5 cents by the expiry date in April 2022, because they are speculating that the stock price will be well above that price by that time. We have seen this kind of activity on call options for biotech stocks leading into key dates with the FDA or on expectations of trial data. Options traders will buy up call options in hopes that a meeting goes well or that data is statistically significant. Traders are reacting to a series of news updates that strongly implies that Kalytera will be getting some kind of deal done within the next several weeks. We already know that the data on Kalytera's Phase 2 trial for GVHD is good.
KLY has repeatedly stated that it is in discussions with multiple potential partners for its GVHD program and that it expects a deal to take place some time in Q1. Kalytera is in a great position to get caught up in a bidding war. The company released its Phase 2 results for CBD to treat GVHD over the summer. The trial went so well that the company cancelled its high dose cohort for Phase 2. We think that once a deal is in place, the company will move ahead with Phase 3.
2019 was a rough year for cannabis stocks, but things are slowly starting to turn around for some companies like Kalytera. As we look ahead to 2020, TradeMiner may be able to help as it identifies seasonal trends and market cycles. Microcap Millionaires finds the next big small cap plays in weed and other industries while Addicted to Profits makes trades from a Canadian perspective. You can also find some insightful information about CBD here.
There are also some good books available such as:
Stock Investing for Beginners: Marijuana Stocks
Make Money Online With Cannabis Stocks: Learn This Basic Strategy and Build Wealth With Cannabis Stocks
Beginner's Guide to Investing in Canadian & US Pot Stocks
Marijuana Stock : Investing in Marijuana Stocks for Passive Income
How To Invest In Cannabis or Marijuana Stocks - Cannabis Investment Group
Here are some other good stock market resources. This includes technical analysis and day trading, dividend stock investing, gold and commodities, sector rotation, options trading and microcap trading strategies:
The dividend stock report from dividendstocksonline.com
The dividend stock report from Dividend Stocks Rock
WallStreetWindow
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
WallStreetWindow
Trader Review
The Trader's Academy Club
The Wealth Builder's Club from beatthemarketanalyzer.com
MyBB: A Forum For Investors and Traders
Spartan Trader Forex Academy Live Daily Trading Room
And try the Z Code System if you're looking for other ways to make money systematically outside of the stock market.
