Rebalancing Marijuana Portfolio

Since getting into the Canadian cannabis sector in late 2015 I’ve been mostly a buy and hold kind of guy. Having seen the different opportunities that have passed me by though I’ve realized I should have taken a more active approach.

When the spread of certain stocks are momentarily smaller than usual I should have taken advantage by selling one of them and then buying the other. For example, if Organigram is usually half the price of Aphria, I should sell Organigram when it’s significantly more than half of Aphria and then buy Aphria.

Some moves I made recently:

Sold 2000 shares of Aurora at $2.17 to buy 2000 shares of Organigram at $2.20. The price was 3 cents different and Organigram is usually 10% higher than Aurora.

Verdict so far: Bad move. Aurora jerked up leaving Organigram behind. A handful of good news for Aurora lately and no news for Organigram as usual. I also didn’t want so much exposure to Aurora since they were about 40% of my portfolio.

Sold 2800 shares of Aurora at $2.72 because it’s on the high end of their typical share price. I had to ask myself if it was going to go to $3 soon. I’m betting probably not. It’s gone up about 25% in the couple weeks. Who knows though, right?

Sold 2000 shares of Organigram at $2.52 and bought 2500 shares of Maricann at $1.62. I’m not a big fan of Organigram. Doesn’t seem like they are ever doing anything except screwing themselves up. I see them aiming to be a solid medium player. Besides, Canopy Growth just announced they are building a facility in the same town.¬†Maricann appears to have good value at this price and have plans to expand into Germany. Their revenue is also much higher than Organigram’s.

Sold my side piece of Supreme today for $1.30. Made a couple hundred dollars. I don’t want to have money invested in a company that hasn’t sold more marijuana than I have. Their market cap is way too high for a company that has no revenue. At this point I’d rather have the cash.

Today was great until it wasn’t. All LP stocks ran up but crashed harder towards the end of the day. Last day of the trading week tomorrow. We’ll see how it goes. I want some euphoria going into the weekend!

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