I hold shares in pretty much every cannabis stock on the ASX, as I believe in the medicinal and hopefully at some point in the future recreational cannabis sector here in Australia. I am bullish the whole sector, but you never know which company will gain traction, would be like in the tech boom knowing the internet is going to be a huge part of the future but not knowing where to park your money, out of fear of missing out (FOMO) I bought small parcels in all cannabis listed ASX stocks, and I only add to stocks that perform and have reason to add (MXC has not exhibited any of those.)
I know you probably think Im having a go at you or just negative anything the company puts out, but I genuinely want to see other people that share my belief in the sector to do very well, and I think with right placement of funds, in 5 + years we will all be laughing and wishing we had bought a lot more when the market was in its infancy like this. However just like the techboom, a lot of the weed names will not make it and just go bust, and if I had to choose a 3-4 companies out of the 20 or so genuine companies in the space on the ASX that I think will not make it, MXC is on that list. I of course could be wrong, but if you just zoom out of yourself and ego and where your money is and just look at what is offered on the ASX Cannabis space right now and then what MXC offers, it is far from the best however even at this price market cap is up there with quality companies so it does have a lot of room to fall, it does not have a good track record in terms of coming through on their word, is low on cash (11 million in current assets and burning through 8 mill a year leaves less than 2 years before there is need for debt or capital raising), has the highest paid management, and then add onto it this latest PR disaster, I would just think there are better places to park your hard earned cash. Hope Im wrong and we all do well, I would just advise on being careful with your cash and not being too attached to one company just because it has a lot of your cash, Ive made the same mistake before too so I completely get the position you are in.
Im curious as to why you believe MXC is such a good company?
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