Profit is Paramount
Another missive about what a corporation is — this time from a CPA at a Canadian company; we’ll consider his opinion expert:
“What my experience and training have drummed into me is that profit is the most important thing to a business. It is how a company becomes sustainable and can pay its employees, vendors, shareholders and charitable organizations year after year.
“However, what my experience and training have also taught me is the best way to maximize those profits is to:
- Deliver value to your customers.
- Invest in your employees.
- Deal fairly and ethically with your suppliers.
- Support the communities in which you work.
“If you do the above, the natural outcome will be generating long-term value for shareholders.
“Maybe it’s just semantics. Regardless, I don’t trust any of those corporate nabobs to take a long-term view (which is what you must do to achieve the 4 bullets) if it in any way is going to jeopardize their short-term pay packets.
“The cynical side of me thinks this statement is a way to frame future poor earnings reports in a way that justifies their continued exorbitant compensation packages.”
We bolded that portion because it’s something we hadn’t thought of… but it has the ring of truth.
Your Rundown for Friday, Aug. 23, 2019:
Pot Stocks: Down But Not Out
Pot stocks have been battered recently — no question.
Our pot stock authority Ray Blanco agrees: “Volatility continues to be a major factor for stocks right now, impacting just about every corner of the market, including pot.” (emphasis added)
“Patience remains a virtue in this market,” Ray concludes.
And for good reason. Take a look at the North American Marijuana Index; it follows the foremost legal pot companies in the U.S. and Canada…
When I look at the chart that follows the index for three years, I can’t help but think of something a friend told me years ago.
At the time, I was trying to shed a few pounds, but every time I got on the scale, I’d be down a couple pounds one day and up a few the next. It was one step forward and two steps back.
My friend urged patience, saying sometimes achieving your goal is like walking upstairs with a yo-yo. The yo-yo might be going up-and-down but your overall momentum is still moving upwards.
The same analogy can be applied to the marijuana industry; the chart shows it’s poised for a Rocky moment. And while pot stocks are down — not out — it’s time to buy.
Market Rundown for Fri. August 23, 2019
S&P 500 futures are down 16 points to 2,906.25.
Oil is down $1.89 per barrel to $53.46.
Gold is up $5.60 to $1,514.10 per ounce.
Bitcoin’s added $93.88 to its price of $10,199.34.
Have a relaxing weekend. We’ll catch up Monday.
For the Rundown,