Note: This post about a weed stock and is not a recommendation. It may or may not be the weed stock or stock that fits your risk management or investor profile.
Like so many other investment options that I’ve learned in the past, I waited for a long time before I bought Organigram Holdings Inc. OGI (ticker symbol).
Mutual fund was my first investment in Canada held in a Registered Retirement Savings Plan. (But I still considered my bike as my first investment because health is wealth. The return on investment to my well-being is priceless.)
Then I added exchange-traded fund in my investment portfolio (ETF). By this time, I think I’m getting better and better in making wise decision when it comes to investing.
With ETF, I saw an opportunity to invest in sectors like REIT, healthcare, technology, and utilities. I ditched the idea with the exception of REIT.
With the start of the year, I decided to try something new and crazy idea that has been lurking in my head since last year.
Why not give it a try and see what happens.
Now I own a few shares of OGI and wondering if it will be a good investment or will its value depreciate so low that I could have gain more if I were to sell my old, beloved red bike (nahhh).
Why Did I Buy Organigram Holdings Inc. (OGI)
I always wear my helmet whenever I’m biking so I am sure that my brain is still in one piece . . . inside my head.
So why on earth did I buy Organigram Holdings Inc. (OGI)?
For starter, if you can’t try something for some reason why not buy its stock instead.
And for a sensible answer, I think there is a potential for weed stocks to appreciate in value since I found out about medical cannabis (or more commonly known as marijuana).
I’ve been following personal finance blogs (highly recommended) but my favourite PF Canadian blogger is Freedom Thirty Five Blog.
His anonymity inspire me that it’s all right to keep your private life private, so that you can write quality content with more details that are important in a blog about finance.
Focus on the craft. And not how I’ll be judged with an (impending) investment failure or success. More of the latter, please.
The blog post of Freedom Thirty Five about Canopy Growth Corp (CGC) made me revisit my tucked away ideas of trying new investment no matter how unconventional and risky it is. (Mind you, he made a mind boggling, high return on investment.)
From the list, I chose OGI because it is a Canadian company in New Brunswick. In a Tax-Free Savings Account (TFSA), I bought shares worth a few hundred dollars. It’s stock price is still low compare to other weed stocks of US companies.
I don’t want to buy US stocks and pay taxes for a risky, volatile stock. (So I wasn’t that too crazy not to think about tax implication.)
It all boils down to this: the higher the risk the greater the reward. I don’t want to know what’s in between besides volatility.
My Bloody Expectation Came too Soon
Writing about OGI is timely because I can show a screenshot of how volatile a weed stock is. I used TMX Money for the chart. Bloomberg is also good for a quick information about a company.
Warning: What comes next is not for the faint-hearted. Numbers don’t lie.
That’s quite a steep declined. OGI opened at C$4.00 and closed at C$3.79.
If I am about to buy today, I would be happy knowing that I buy low and looking forward to sell high.
But NO. I got in the game at C$4.92 (and paid C$5.21 for the commission) so that’s why my stock is bloody red asking for a bandage.
Keep calm. In stock market, the price goes up and down in a blink of an eye (not a calming idea, I know).
I’ll add a screenshot once the OGI’s price recover, hopefully in the near future. I’m in it for the long haul so there’s no rush. Good things come to those who wait.
Takeaway: If you are planning to buy a weed stock, get ready for a volatile ride. And invest only the money that you are willing to lose.
What’s My Next Plan
I’m taking this experience as part of learning behavioural psychology in investing, the part that says I have to get used to the ups and downs of the market.
While it’s depressing to look at OGI’s chart, I’m definitely not going to buy more shares of OGI. For the meantime I have plans to keep me busy; again these are NOT recommendations.
- Buy HMMJ (marijuana ETF).
- Buy a blockchain ETF (HBLK).
- Turn TD e-Series into ETF (for non-Canadian ETF) by transferring to Questrade
- Stay updated about weed stock on Reddit
I am only sure of the last two plans. Buying more highly volatile ETfs is still a thought that paralyze me enough not to make it a reality.
But we’ll never know when will analysis paralysis can make me mad that I’ll make a buy order. If I did, it wouldn’t be that much. Promise.
Update: Market Value of My OGI Stocks
I bought my OGI stocks (73 shares) in January 2018. As of June 2019, the market value increased by 44.30% but, sadly there’s still no dividends unlike HMMJ that yields cash dividends (quarterly).
Should I sell or keep it?
I’m keeping it. It’s too early to throw the towel. The weed industry is just starting not only in Canada but in different countries.
Do you have a similar story? If not, what’s keeping you from investing in weed stock or other volatile stocks?
Photo Credit: By No machine-readable author provided. Bogdan assumed (based on copyright claims). [GFDL or CC-BY-SA-3.0], via Wikimedia Commons
I’ve gone leap and bounds in my investing journey and to be honest I also started trading on speculative stocks. But it’s has really never given me profitable advantage.
I will reconsider though when these companies start paying dividends. For now I’m just happy to smell weed in the air!
Pwede Padala Gal says
Will definitely update the post if OGI starts paying dividends like HMMJ (weed ETF). Weed in the air is everywhere especially in downtown. It has become the norm.
You’re brave for investing in a small cap stock. Looking at the fundamentals, I see that their revenue is growing, but was somehow negative during the 1st quarter of 2017. I haven’t been following the news about medical marijuana lately. Never smoked pot either (although it was one of my regrets, I should have tried it in college when I had the chance.. lol). I hope the investment goes well.
Pwede Padala Gal says
I hope to earn gains in the future, though I’m not in a hurry. Based on what I observed, medical marijuana is here to stay. I prefer weed stocks than cryptocurrency which I’ll also try if I have an extra cash to speculate with. I also haven’t tried to smoke pot but curious of the effects in writing. (Maybe I would be able to write all day.)