Anyone else worried these prices are not sustainable? Compare them to Weed stocks from 2005 onward, you could be caught bag-holding.
Realistically, I don't see shroom stocks all of a sudden going the way of Weedstocks like they did 5 years ago. 5 years ago, weed was being primed for recreational legalization.
But if you go back 10 years, when it was legalized for medicinal use, there was a boom, a very very striking similar boom to these shroom stocks.
If you take Canopy Growth Corp for example, and head back in time, you'll notice the stock started to make a run from under a buck in May of 2003.
It shot up to $5 in October of 2003, before dipping at Christmas and the making another run to nearly $8 in February of 2004.
It would pull back for the year and then shoot back up into $7 range, but then it would slowly decline to $2 by September 2005, and then the $1 range by 2007. By 2009 CGC was back to a penny stock and remained there until 2014 before it started to gain traction for rec use.
If we were to follow this same timeline, and I think it will take as much time before shrooms are rec, and yes shrooms will be legalized for rec use (let's please not discuss this. It will eventually be full legalized)... back on track, if we were to follow this timeline, and I know you can't exactly compare apples to oranges, I still feel like shroom stocks right now are hot, and will remain hot for several months, but I think they will cool down by summer 2021.
If you look at it now, the stock has cooled. Is it really going to keep rallying for the next 3 years? Impossible. What can carry it? It's already been approved for palliative care and therapy. I think there will be a few more hype runs but and if you're long term that's fine... but be wary of buying too high. Keep cash on the side so you can average down.
Posted Dec 17, 2020, 6:28 PM UTC
Love the read, I just wanna add that this is a completely different ball game though . People will treat it differently because we have the weed boom to compare it to in the first place. Everyone is so keen that it’s gonna be similar to the 2007 and 2014 runs, in reality it’s a new thing, it’s not weed. People thinking it’s gonna be similar is enough to cause unpredictability.
Its also a completely different chemical reaction caused by these drugs. we don’t know the full extent to how mdma and psilocybin works on the brain either. In the end it’s just as unpredictable as anything. we’re all routing for these drugs to be something new. The positive effects these drugs could have could be world changing. We’re all routing for that too. So to compare it to weed just doesn’t do it justice. To believe it would be similar to the weed run would be redundant to the cause that is the shroom movement.