Recent Purchase- Doja
Doja – Back Ground
Doja Canna is a new small Licensed Producer, they received their license to cultivate June 16th 2017. License to cultivate means they can grow but can’t yet sell marijuana.
They have to prove to Health Canada that all the systems are in place before they can sell. A license to sell has taken some producers a year to get. With new streamlined process from Health Canada, this might happen sooner. They are expecting license to sell Q1 2018, just in time for the rec market.
Doja is being led by the founder of Saxx Underwear. Trent Kitsch built the brand into one of fastest growing premium men’s underwear brands.
Just taking a look at their website you can tell they are setting a brand up, with Handcrafted approach to canna.
The biggest risk would be running out of money before getting their license to sell.
Reason I bought
I had looked into Doja when I first read about their upcoming IPO. I knew that I would not buy on the day of the IPO as I have seen too many stocks drop right after. Some times there is a spike up on the day of, but then usually a drop.
Its also usually a pain to buy on the IPO as most brokers are setup a head of time, having to call them to make the purchase.
I got a notification from Canada Pot Stocks about the stock tanking to $.50 I hadn’t even been watching the stock. You can also see in the post that the stock started at .75 went to .99 and then dropped to .50
I bought at .55, as I put in a market order and that was the current ask. So right now I’m down 10% but can easily see that reversed in no time.
Some investors out there bought in at .99 thinking this stock was going on a run. Now maybe panic selling as their money was just cut in half.
Basically I bought this stock because of the huge decline, yes it could go lower, but what are the chances. The higher the price the more it can drop.
I did make one judgment error when buying, I looked at the market cap on my broker site, it was showing 8 million. I thought damn, this is super cheap. I’m pretty sure a late stage applicant tried to sell their application for 8 million dollars. So for a LP that has a license to cultivate, 8 million market cap is cheap.
Turns out there is more shares available then was showing on my broker, so the true market cap turned out to be 38 million. 38 million market cap still isn’t too bad.
I should have gone to the CSE webpage to check, clearly says 58 million shares issued at .50 so 30 million market cap.
In comparison, PUF ventures has a market cap of 15 million and does not yet have a license to cultivate.
I’ve been investing in these companies for a while and I’m still making mistakes. But at least I didn’t buy at the high, my mistake was just not doing full due diligence. I will learn from this and move on. Each step of the way there are many ways an investor can make mistakes, the longer you do it the more you learn.
Sometimes losing a bit of money is the price of tuition.
So I ended up doubling down and buying another 4000 shares at .49 the stock has now rebounded and it looks like I manged to buy the dip! The chart is a little off as the stock went down to .46 so didn’t get it right at bottom, but close.
I bought more because compared to other LPs at .50 the stock was undervalued.