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Tesla…Watch Your Back

Dear Rundown Reader,

A reader raises some good questions about pot stocks:

“It would appear that you focus on cannabis stocks that are on the NASDAQ/New York Stock exchange only.

“I was wondering for us meager low-funded investors who want to enter into the cannabis market, you could include ‘penny stocks’ in your cannabis/marijuana information and updates.

“Considering most companies (l’m assuming) started out as a penny stocks and are able to fund their IPOs and move onto the New York Stock Exchange you could consider following them to show us the OTC Penny Stocks as a full realm of the Cannabis Industry information.

“Thank you.”

The SEC considers any small-cap stock that’s $5 or less per-share a penny stock. Some of these “penny stocks” are listed on major exchanges like the NYSE and Nasdaq.

The reader’s correct — some of the cannabis stocks we charted Friday started as penny stocks. Here’s when the following stocks outgrew the penny stock label:

  • Canopy Growth — Nov. 2016
  • Aurora Cannabis — Oct. 2017
  • Cronos Group — Nov. 2017

Of all the stocks on Friday’s chart, Sunset Island Group (SIGO) is a true penny stock at 40-cents per share. It trades OTC and not on a major exchange. (For an overview of the entire marijuana market — including penny stocks traded OTC — bookmark the link here.)

And if you have questions about the fledgling marijuana market, America’s #1 pot stock expert Ray Blanco has the answers.

Ray pens the e-letter Penny Pot Profits that has a simple goal: “To weed through the emerging marijuana industry to find the best, most potentially lucrative penny pot plays on the market.”

Sounds like a perfect fit.

We appreciate your feedback.

Your Rundown for Monday, November 12, 2018

If You Can’t Beat ‘Em…

The largest automaker in the world, Volkswagen, is partnering with Ford (fifth-largest, if you were wondering) to change the auto industry.

In June, the two carmakers announced they’re collaborating on a fleet of “light vehicles”; now, plans have expanded to include the electric and autonomous car market.

“Partnerships on electric vehicles and advanced technologies, like the one being discussed by Ford and Volkswagen, make sense,” says Michelle Krebs, executive analyst at Autotrader.

“These efforts are extremely expensive with no clear timing on return on investment,” she says. “Sharing cost and boosting economies of scale makes sense. We will see many more of these partnerships between car companies as well as technology companies.”

As for the electric car market, are you thinking what we’re thinking? Tesla might be getting some competition?

As it stands — for the first six months of 2018 alone — Tesla dominates the market:

chart

Elon Musk’s Tesla blows the competition away in the U.S.; the company produces three of the top four electric car models.

Rumor has it Volkswagen and Ford will develop an electric vehicle to rival Tesla’s Model 3 — the more affordable sedan that starts at $35,000.

The Volkswagen/Ford collaboration would sell for less than $23,000 or 20,000 euros. Perfect timing, too, as the EU wants to cut vehicle emissions by 35% by 2030.

If Volkswagen and Ford play their cards right — designing a stylish “plug-in” vehicle that costs less than Tesla’s Model 3 — well, things might get interesting.

Market Rundown for Mon. November 12, 2018

S&P 500 futures are down 47 points to 2,734.13.

Oil is up 62 cents to $60.81 a barrel.

Gold continues to slide; it’s down $4.20 to $1,204.40.

Bitcoin’s lost $32.04 to $6,343.

Have a good day. We’ll touch base tomorrow.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown. Aaron’s been with Agora Financial/Seven Figure Publishing for 13 years. He's been covering technology and markets for over a decade.

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