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Discussion Starter #1
This Horizons ETF (HMMJ) launched yesterday and is the first marijuana ETF in the world! It holds mostly Canadian marijuana related stocks, capped at 10% each. Thoughts?

The fact it's a new sector is intriguing, I'll admit, though all the stocks in it are very high risk. I'm tempted to buy 100 shares as a lottery ticket, purely as a ponzi/bubble play in case tons of money pours into the sector and sparks a bubble.
 

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Discussion Starter #2 (Edited)
By the way, the fund is currently tiny, $26 million. I'd watch to see whether this attracts new capital. If it does, money pouring into relatively small stocks like these could drive up their prices tremendously.
 

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Don't worry about supply. Marijuana companies are raising capital about as fast as can which will keep everyone afloat in paper. The easy bubble money has been made when they all went up 300-400%. None of them have the capital to grow revenue to meet their valuations without raising more capital. These are agricultural stocks, not technology stocks. You don't get unlimited free copies of the software. More issues coming soon to a discount brokerage near you.
 

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I'll agree Doctrine , it might not going to be "the sky is the limit" business - but I want to believe they are accumulating
knowledge , and hopefully very valuable one , through the medical part of it - knowledge that regular seed & plant labs
in the us and most of the rest of the world (except maybe Holland & Israel ) can not have any access to. Thats why I'm
a buyer - but no, etf is not for me.
 

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By the way, the fund is currently tiny, $26 million. I'd watch to see whether this attracts new capital. If it does, money pouring into relatively small stocks like these could drive up their prices tremendously.
'Bout time! didn't i mention someone should start one? in a previous post? or was I hallucinating - again?
sooo...... it looks like others have put in about $25 million...in addition to my initial investment, eh? ;)
 

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Discussion Starter #6
The fund is up to $38 million now, so it went from $10 million to $38 million of assets in just a couple days of trading.

Like I said... if tons of money start flowing into this sector, it could be a real crazy bubble. I'm thinking of playing this as a lottery ticket, just in case a billion $ of greed flows in from around the world and creates an enormous bubble.
 

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The fund is up to $38 million now, so it went from $10 million to $38 million of assets in just a couple days of trading.

Like I said... if tons of money start flowing into this sector, it could be a real crazy bubble. I'm thinking of playing this as a lottery ticket, just in case a billion $ of greed flows in from around the world and creates an enormous bubble.
..uh yeah.... but the ETF price would have to rise also, no? in addition to the greed factor?
 

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I have been looking into this since I saw this thread.
Overall I don't think playing the marijuana sector by individual stocks is for me. But in an ETF that could work, I have looks at the ETF's holdings and some of the larger US companies may provided reasonable downside protection, while the smaller ones may provide more upside potential.

I will be watching this one closely over the next few weeks.
 

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Discussion Starter #11
I also like the idea of doing this with an ETF. I would not buy the individual stocks.

This is somewhat like a pharma stock ETF and it's probably going to be damned volatile. If the bubble circumstances are right, it could run up 3x or 6x in value and share price. But join the party late and it could probably tank 90%.

I think the potential upside is greater than the downside. I could see $100 in HMMJ turning into $10 (if bubble bursts) or into $600 (bubble continues).
 

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Discussion Starter #12
The main thing I'm going to watch is the rate of inflows (new capital) into the ETF.

The current $38 million AUM is very impressive for a brand new Canadian ETF. Consider that iShares has 14 funds with less AUM and some of them have been around for nine years!
 

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By the time you are done watching it will be over.

The good news you are right this time. You already missed the money let it go.
 

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I hold stocks from MJ Canadian companies since they were under $1 and that are listed in the ETF. It has been extremely volatile, but since it didn't go down so much. Right now some are shorting and spamming, pumping and dumping in some forums, but it is sure that the future is not clear since PM stated that the legalization will be done on 2018. However if you check all holdings in the ETF you can see consolidated MJ companies from US like Insys that it went down from $44 to $9-10. In some moment this can go high again.

These are the companies in the ETF http://www.horizonsetfs.com/horizons/media/pdfs/productsheets/HMMJ-Product-Sheet.pdf

Maybe when recreational MJ is legalized this ETF could include them and change its name or another ETF could be created.
 

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Btw, the starting price of $10 and $11.45 as of today, it was so high and risky to buy more than a board lot since I already have more shares individually, I started to buy just 200 shares of the ETF last week. Maybe this can go high in the midterm.
 

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Discussion Starter #17
Given the volume on this today, I suspect that Net Assets have swelled to over $50 million at this point. We'll see once the web site is updated. This ETF is looking like a huge win for Horizon.
 

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Insider selling is spiking. Not a great sign, but don't let that stop anyone from investing, I'm sure it's just for personal reasons.

A lot of friends and acquaintances are asking me about marijuana stocks. Some of them don't even have an RRSP but want to buy in, and probably will. Sigh.
 

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Discussion Starter #20
Given the volume on this today, I suspect that Net Assets have swelled to over $50 million at this point. We'll see once the web site is updated. This ETF is looking like a huge win for Horizon.
It's now at $62 million assets. This four day old ETF is now larger than 26 iShares ETFs, including: XID (India Index), XIT (the 16 year old tech index), XCH (China index)

Isn't that crazy? XIT, the tech sector ETF that was created in 2001, is smaller than the four day old HMMJ
 
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