Mish’s New Stock Pick

Published on
January 2nd, 2019
Topic
Trading, Equities
Duration
14 minutes
Asset class
Equities

Mish’s New Stock Pick

Trade Ideas ·
Featuring Michele Schneider

Published on: January 2nd, 2019 • Duration: 14 minutes • Asset Class: Equities • Topic: Trading, Equities

Michele “Mish” Schneider, director of trading education and research at MarketGauge had some great calls with Ehealth and 3D Systems in 2018, and now returns to Real Vision with a new treat for 2019. Mish is interested in a high-flying beverage company with huge growth potential, and reveals the name in this interview with Justine Underhill. Filmed on December 13, 2018.

Comments

  • MS
    Michele S. | Contributor
    18 January 2019 @ 17:54
    https://cheddar.com/videos/new-age-beverages-releasing-bob-marley-branded-cannabis-infused-drinks
  • MS
    Michele S. | Contributor
    14 January 2019 @ 19:55
    01/14 NBEV rises over 18% and only around 60 cents to the first target mentioned during the interview. That's after giving you lots of time to buy it between 5 and 6.
  • RS
    Robert S.
    8 January 2019 @ 20:39
    Emmm...Bob Marley died of lung cancer from smoking weed!
    • MS
      Michele S. | Contributor
      9 January 2019 @ 18:45
      Wrong-he had cancer in the toe, which he did not remove as per doctor's suggestion b/c he wanted to go natural routes-and it metastasized killing him way to young
  • OC
    OTTO C.
    8 January 2019 @ 03:37
    Interesting recommendation to keep an eye on for the future.
  • KR
    Kenneth R.
    4 January 2019 @ 23:47
    The ceo is a serial capital destroyer.
  • DL
    Dan L.
    4 January 2019 @ 15:22
    Looks like a highly speculative play given the financial position of the company. The losses in their company have multiplied by 9 since last year ($9.1M in losses for the 9.1m ended Q3.2018 vs. 1.2m in Q3.2017). Their assets are also made up mostly of Goodwill & Intangibles (roughly 45% of total assets). In addition to Ryan P's comment below for the commissioner's statement, how can this not be a short trade? It seems more like a pump & dump idea given that the trading. Intrinsic value is obviously $0 using the current financials as a proxy... Just trying to gain a better understanding of how a trader would be seeing value for a short-term profit here outside of it being an Acquisition target for a Coca-Cola, etc...
    • MS
      Michele S. | Contributor
      4 January 2019 @ 15:49
      Thank you Dan for your comments and question. The fundamentals are one thing-I spell out a very specific strategy technically. A buy around current levels (5.00-5.60) risk under 4.50 (4.24) for some room, is not only reasonable, it gives us a chance to look at a 2:1 risk/reward for a move to a no loss stop and some profit taking (at around 6.50-7.00). Often, I see the technical precede the fundamentals.
  • RP
    Ryan P.
    3 January 2019 @ 23:59
    Hi Michelle, not sure if you'll see this but... According to the commissioner’s statement on Friday (12/20), “…It is unlawful under the FD&C Act to introduce food containing added CBD or THC into interstate commerce, or to market CBD or THC products as, or in, dietary supplements, regardless of whether the substances are hemp-derived. Under the FD&C Act, it’s illegal to introduce drug ingredients like these into the food supply, or to market them as dietary supplements. This is a requirement that we apply across the board to food products that contain substances that are active ingredients in any drug.” Does this change your thesis? Thanks, Ryan
    • CW
      Chris W.
      4 January 2019 @ 11:24
      A plausible explanation for the large short position on the stock.
    • DL
      Dan L.
      4 January 2019 @ 13:26
      I just read this press release as well - was this part of the questions you asked the CFO during your call?
    • MS
      Michele S. | Contributor
      4 January 2019 @ 15:24
      Hi Ryan and thanks for your comments. I'd say yes and no. The co. has a plan to distribute to the western states that have legal CBD-Colorado, Nevada, Washington, California, Oregon-for now. The FDA is an issue and I believe could be until the pharma companies get more involved. We also do not know how long it will take for FDA to "study" the medical benefits of CBD. The co. has no intention at this point of adding THC, only CBD. So we shall see-that's why I like a tight risk for now-say around 4.24.
  • MH
    Michael H.
    3 January 2019 @ 14:04
    A tad over one third of new age beverage float has been sold short. Curious what the thesis is there. Either huge short squeeze or the shorts have found something tangible and new age beverage fizzles. I do not have a dog in this race, yet.
    • MS
      Michele S. | Contributor
      3 January 2019 @ 16:12
      Thesis to me is that this is a company that can easily grow or be bought out-in a good space with desirable products
  • JC
    Justin C.
    3 January 2019 @ 06:12
    Is this a MLM company? I ask as Morinda is/was and I'm very familiar with them. They used to hawk this fruit from Tahiti that they claimed solved all kinds of chronic illnesses, which was of course not true. Made me chuckle to hear they are now in the cannabis space.
    • MS
      Michele S. | Contributor
      3 January 2019 @ 16:13
      As far as I know this is not a MLM company.
  • dw
    douglas w.
    3 January 2019 @ 01:53
    Mish is super cool to come up with this but unfortunately, I think the risk far weighs the reward. This will have a 20-30% draw down and its just part of inhaling and exhaling. Use a larger trading range and don't bet the farm.
    • MS
      Michele S. | Contributor
      3 January 2019 @ 16:09
      Thanks for your input!
  • DS
    David S.
    2 January 2019 @ 20:27
    All hemp is not marijuana. Does anyone know if the farm bill legalizes commercial hemp which is used for rope, textiles, clothing, shoes, food, paper, bio-plastics, insulation, and bio-fuel? Big difference between commercial hemp and marijuana. DLS
    • MS
      Michele S. | Contributor
      3 January 2019 @ 16:09
      About 80% of hemp is related to cannabinoids; the rest as you say-rope textiles, etc. Whether that equation changes remains to be seen. It's a good thing either way
  • KB
    Kenneth B.
    2 January 2019 @ 17:47
    I like this quote: "... the industry is so much bigger than just Bob Marley and smoking a doob." - you got that right Mish!
    • MS
      Michele S. | Contributor
      2 January 2019 @ 18:10
      LOL! Thanks Kenneth!
  • MA
    Matthew A.
    2 January 2019 @ 15:38
    Your mom and her friend lied to you ;)
    • MS
      Michele S. | Contributor
      2 January 2019 @ 17:11
      LOL-maybe!
  • JH
    Jesse H.
    2 January 2019 @ 14:36
    Very interesting and well-diligenced. And some great questions from Justine. Thanks ladies - great trade idea interview.
    • MS
      Michele S. | Contributor
      2 January 2019 @ 17:11
      Thanks Jesse!
  • sT
    sid T.
    2 January 2019 @ 12:43
    Welcome back Michele! RV has placed some faith in her, presenting her trade idea first in the year. Trade placed. Here is to a (hopefully) better year!
    • MS
      Michele S. | Contributor
      2 January 2019 @ 17:13
      Thank you Sid-I'm with you-hoping for a better year. Best with the trade!

More Episodes