Over the past few years, investigations by regulators into emissions irregularities by European Automakers as well as the threat of electric vehicles (EVs) have put the share prices of these companies under significant pressure, leaving them behind in the broader market rally.
A look at their share charts as well as related companies signal that we could be witnessing a medium to long term recovery as prices repeatedly test resistance levels, a signal of buyers interest starting to build.
At current levels, these stocks present attractive buys within a medium to long term portfolio:
#1. Daimler AG
The share has not participated in the broader market rally at all and could potentially start to catch up as the Euro takes a breather.
At the end of July 207, the share retreated to test the breakout level from the downward trend in place since March 2015. At the beginning of September, the share yet again broke the short term downward trend line to set up an inverse head and shoulder formation that has been in development since January 2017.
Additionally, the near term moving averages on the weekly chart all point to an upward trend now being established.
Buy Daimler at €73.50
Take Profit: €90.00
# 2. BMW AG
After breaking the downward trend that had been in place since March 2015, the price retreated toward the breakout level.
The weekly chart sees the price having formed an inverse head and shoulder pattern since January 2017 with resistance at the €90 level.
Investors could look to add this share on a weekly close above the current resistance/neckline.
Buy BMW at €90
Take Profit: €109 and €115
#3. Continental AG
The price action in the stock is very bullish. After having traded in consolidation range since March 2015, the share has broken to the upside, clearing the overhead resistance at €229. It now appears we are at the start of strong upward trend. At current levels traders could look to start accumulating the share.
Buy CONG at € 235/240
Take Profit: €270 and 290
Either trade the individual stocks or Buy the entire basket.
The market for recreational marijuana sales has commenced on 1st January 2018 in the state of California in the United States.
This, is big business!
According to cannibis financial analysis firm GreenWave Advisors, the state’s existing black market for marijuana is pegged at $13.5bn, while the legal market could be worth an estimated $5.1bn in 2018. Another source, Marijuana Business Daily, estimates that sales could reach $8bn in 2019.
The market for recreational marijuana sales has commenced on 1 January 2018 in the state of California in the United States. This, is big business. According to cannibis financial analysis firm GreenWave Advisors, the state’s existing black market for marijuana is pegged at $13.5bn while the legal market could be worth an estimated $5.1bn in 2018. Another source, Marijuana Business Daily, estimates that sales could reach $8bn in 2019.
While five other states in the US already offer legal marijuana sales, the size of the state of California is set to reshape the entire industry.
Since 1969, support for the legalized use of marijuana has increased by five-fold:
Legal Status of Cannibis:
Getting Exposure To The Marijuana Industry via ETFs:
#1. Horizon Marijuana Life Sciences Index ETF
The ETF seeks to replicate, to the extent possible, the performance of the North American Marijuana Index (the “Index”), net of expenses. The Index is designed to provide exposure to the performance of a basket of North American publicly listed life sciences companies with significant business activities in the marijuana industry.
Top 20 Holdings and Composition by Country:
Technical View: At current levels the price is slightly higher where I would suggest an entry. Should we see a short term pullback, investors should look to add to a portfolio.
#2. AdvisorShares Vice ETF
The investment thesis of the AdvisorShares Vice ETF (Ticker: ACT) believes that investing in select alcohol and tobacco companies will provide continued growth and long-term performance across all types of market environments.
Coupled with the continuing societal acceptance and regulatory approvals of cannabis across jurisdictions, a new investment avenue has emerged that provides a compelling upside to complement the steady and more predictable returns of the coined recession-proof equities.
Technical View: Investors could look to add at current levels ($26.66), using a stop loss of $22.
#3. ETFMG Alternative Harvest ETF
MJX tracks the Prime Alternative Harvest Index, an index created to provide investors with a product that enables them to take advantage of both event-driven news and long term trends in the cannibis industry as well as the industries likely to be influenced by the medicinal and legalization initiatives taking place in many locations globally. The index is designed to measure the performance of companies that will benefit from these initiatives, collectively referred to as companies in the cannibis ecosystem.
Technical View: After consolidating in a sideways range since mid-2016, the price has made a bullish upside break. Buy at current levels or better ($35.57). Stop-loss: $30.