Why Pot Stocks Will Go to Zero Welcome to Trading With Larry Benedict If this is your first time reading Trading With Larry Benedict, thanks for joining us. You can catch up on all previous issues right here. If you have any questions for Larry, or feedback, shoot us a note anytime at feedback@opportunistictrader.com. | Daina’s note:Yesterday, Larry made a bold statement: The legal cannabis sector is just a bubble. With a lack of liquidity in the space, and investors willing to pay any price for these plummeting stocks, he sees big trouble on the horizon. In fact, he believes cannabis stocks will go to zero… and fast. Read on to find out why. And make sure to see my note at the bottom of today’s interview for a special announcement...
Daina Schnese: On Monday, you said cannabis stocks are just another bubble. What does that mean for the sector as a whole? Larry Benedict: Look, I want to be frank with you from the start… I think cannabis stocks are going to zero. And I know that’s not a popular position to take because of all of the hype surrounding the sector... | Recommended Link | | A controversial topic
This may tick you off… Some people just don't like the idea of charity. They think it's all about "handouts." Others object to how most charities are run.
But to Market Wizard™ and billion-dollar hedge fund manager Larry Benedict, it's a big part of his life and way of thinking. "I've done so well in my life… that it seems irresponsible… just wrong not to give back," he told our team.
That's why, on Wednesday, December 11th, Larry is putting his reputation… and a pile of cash on the line. He will place a live trade… with the goal of generating $70,000 or more… in a day… If he wins, the money will go to a local charity, Boca Helping Hands. If he loses, there will be thousands of fewer meals in the South Florida area. You'll see the results—win or lose. | | | -- | Daina: That’s a pretty bold statement. Why do you think they’re headed to zero? Larry: For one, these companies have no business being at these current valuations. It’s amazing because all that’s happening is hype creation. If you get enough people to hype it up, you can see the big swings we’ve seen in pot stocks. Look at a company like Tilray. Its share price went from a low of $24 to almost $150 in, what, two months? And now it’s right back where it started. . Or Cronos Group, which went from $7 per share, all the way to $21, and back again. All in the span of a year or so. These companies are going to keep heading lower. And the main reason why I say that is that these hyped-up companies just aren’t necessary. Anyone can grow cannabis in their closet. And people will always find a way to purchase it illegally - just as they have ever since it was made illegal. Look, we could turn the room we’re sitting in right now into a grow room. You could turn your basement into a grow room. You could plant some in your backyard. I just don't see how these companies will survive when they’re selling a natural resource that could soon be legal nationwide - free for anyone to grow. Anyone buying these stocks is going to suffer a lot of pain. Daina: What do you think will pop the bubble? Larry: Oh, it already popped. Again, when these companies like Tilray shot higher and came crashing back down to reality, that was a big pop. They aren’t headed back up to nearly the same valuations ever again. Like I said, these stocks are headed to zero. That’s why I haven’t traded them and never will. It’s the same reason why I won’t trade Bitcoin anymore, either. I have made a few transactions… and let me tell you, what the mainstream is pumping out about “ease of use” with Bitcoin transactions is completely false. Daina: I remember you said last time that Bitcoin is just a bubble as well. So, why don’t we dive into the Bitcoin bubble next time we see each other. Larry: Perfect. Looking forward to it.
Daina’s note: Tomorrow, Larry gives his unfiltered opinion on Bitcoin… and why it’s all just another bubble waiting to pop. But before you go, I wanted to put something big on your radar... Larry recently announced his latest project. In what some are calling “America’s First-Ever Trade-a-Thon”, Larry will challenge himself to generate $70,000 in three hours... If he wins, he will donate 100% of the proceeds to a local South Florida charity. We'll show the results – win or lose. He’ll reveal his method for this incredible feat on December 11 at 8 p.m. ET. And for all who attend, he’ll provide a free copy of his “Foolproof 50” – the only stocks any trader needs to consider to generate hundreds of thousands in profits. Claim your seat right now, and keep an eye on your inbox in the coming weeks for a special video series highlighting Larry’s unique approach to the markets… and why he chose to undertake this project. About Larry Benedict... Larry is a former hedge fund manager with over 30 years of investing experience. He’s also known as one of the world’s best traders… and for good reason. From 1990 to 2010 – when he was actively running hedge funds – Larry never had a single losing year. Larry’s market commentary is frequently featured in Bloomberg, Barron's, and The Wall Street Journal, among other major news outlets. That’s why we’re publishing this limited-edition interview series over the next couple months. When we saw what Larry could offer to everyday investors, we knew we had to share everything we could with you. If you have any comments, questions, or suggestions about this free e-letter, please drop us a line at feedback@opportunistictrader.com. | | 
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