How I got 200 free shares of ACB
That last few weeks has been crazy, weedstocks have been climbing like crazy. The buying I did from April to September has really started to pay off.
If you follow my twitter or blog, you know that I’m invested for the long term.
So why did I sell off some ACB
Believe me, I think Aurora is going to be one of the top players in the industry, they already are shaping up to be one.
ACB has gone from 3.00 at the beginning of November up to over 8.00 at the end of November, with a 52 week high of 8.66. So the stock basically tripled.
Doesn’t look to bad on the below chart right. Well when you zoom out a bit, you can see just how much growth it has had relative to its past price. I always try to look at different time frames to get a better look at what the stock is doing.
So why did I sell off 1000 shares or $8,000 worth when I believe in the long term success of Aurora. Other than the fact the stock tripled recently.
Luckily I have 14,500 shares. So I can sell some and still be in a long position. I don’t want to sell off my position and miss out on a stock run up. Now that the stock has corrected it’s obvious I should have sold a lot more. Some times you are too deep in the woods….. I didn’t want to miss a run up?? Hello we just had one. Dummie
When I sold off the shares, I was stressed that I had made the wrong move. I had decided to sell as a dollar cost averaging strategy. If I sold some at $8.00 and the stock when to $10, 15, 20 I would still have shares to sell. I do dollar cost averaging when buying all the time, might as well do it while selling.
Of course now that the stock has come back down, man what a great move I just did, I’m so smart. But really if I knew what was going to happen I would have sold them all.
The nice thing about selling off a small percent of shares is I make money if the stock goes up or down. If the shares continue to rally, I can sell the rest of my holdings. If the shares tank, I can buy back in and get some extra shares.
This was a bit of an experiment for me.
I ended up buying back in at $6.69 for 1200 shares. So I manged to increase my position in ACB.T by 200 shares by selling high and buying low. At 6.69 that’s $1,338 extra in shares. If I had just bought back in with 1000 shares this is the amount of money I would have saved.
Looking at the trends now, I probably should have been a lot more patient, but it looked like the stock was holding around $7.00. I was just trying this out, so wanted to make sure I got back in with extra shares as that was my goal. If the stock now drops down to $5.00 I’ll have learned to be more patient. It’s also a 45,000 drop for my account if ACB goes from 8 to 5 with the 15,000 shares I now hold.
Another reason I had sold was I regretted not selling during the peak last year. Wanted to take some profits this time around. If the drop continues I’ll be wondering why I didn’t sell more and wait for the dip, even though I know I can’t time the peaks.
Going forward I’m going to try sell small amounts and buy back in on the dips. Just to see if I can add to my holdings without using more capital. If the stock doesn’t drop I’ll have locked in some profits.
Quick comparison of WEED vs ACB. Can see the short term growth of ACB vs WEED. Will ACB come all they way back down to similar returns as WEED? Time will tell.