Marijuana Stocks And The January Effect: N=229 Stocks Up An Average Of 51%

|
Includes:
by: Anthony Cataldo
Summary

I examine the N=229 marijuana stocks in my Seeking Alpha portfolio for January Effect returns of 51% (4 week performance).

134 of these stocks were “winners,” generating an average return of 95%; 64 of these stocks were “losers,” generating a negative return of 17%.

These returns are remarkably high for any 4 week period; February may provide an opportunity for entry, as you build your marijuana portfolio.

I recommend spending less time “picking winners” and more time spent on “building a portfolio” in anticipation of Canadian legalization.

Clearly, for the past 4 weeks, simply “throwing a dart” and building a randomly selected, diversified portfolio of marijuana stocks would have worked.

Below is a simple table, summarizing the N=229 [100%] marijuana stocks included in my Seeking Alpha marijuana portfolio. Before deletions or partitions, returns for the entire portfolio were 51%. This is remarkable!

 2017 Returns N or Population 229 less: Stocks with No Measures -15 equals: Adjusted N or Population 214 less: Winners -134 less: Losers -64 less: No Change -16 equals: Remainder 0

Only n=15 [7%] had no measures and were separately identified when I performed a simple Excel file sort by percentage return over the first 4 trading weeks of January [see above table]. I deleted these observations from the population. With respect to winners and loser, n=134 [56%] were winners; n=64 [28%] were losers; and n=16 [7%] had no change or zero returns over the first 4 trading weeks of January.

The data used to compute these measures is in the Appendix. You can copy/paste these measures into Excel, and conduct your own sorts to examine the population of marijuana stocks on a variety of dimensions. I have tested this, using my earlier Seeking Alpha article, and it works very nicely.

If you have \$10,000 to invest, consider investing \$1,000 in each of your favorite stocks to diversify. The same strategy of \$1,000 per stock would work if you have \$100,000 to invest.

Always take some profits, most likely to be maximized when "good news" hits and there is an "upside overreaction" for the entire sector. The last event of this sort occurred on or around November 8, 2016, when additional U.S. states voted to permit recreational use. (see my prior Seeking Alpha articles on this topic).

In this case, I anticipate the next good news for the sector will be "formal" legalization occurring in Canada. If you have been following my work, you are already very familiar with my recommendation that you rotate into and rotate out of the marijuana sector based on sector overreactions. So far, these broad brush stroke trading strategies have been working, as follows:

• Rotate into marijuana stocks for the anticipated November 8, 2016 upside overreaction.
• Rotate out of marijuana stocks for the anticipated tax loss selling or harvesting in late November 2016 through calendar year end.
• Rotate into the marijuana stocks for the anticipated January effect in the last week of December 2016.
• Rotate out of marijuana stocks after the January effect in 2017.
• And, now, rotate back into the marijuana stocks in anticipation of the formal Canadian legalization measures upside overreaction in a few months. Once this occurs, I am unaware of any near-term events likely to cause an upside overreaction for the remainder of 2017, so, unless otherwise corrected, I would be rotating out of the broad marijuana sector until about December 21, 2017, to buy low during tax loss selling or harvesting season in anticipation of another January effect [2018], likely to have some follow-through up through the November 2018 election day ballot measures, as of yet, undetermined.

The above is broad brush stroke. If you like a specific marijuana stock, buy it and hold it, long-term. For example, I like Cannabix [BLOZF], so I am holding it, but if there is an upside overreaction, I will take profits. This particular stock does not trade like a typical marijuana stock, and some of the others contained in the Appendix, also, do not trade like typical marijuana stocks. I have addressed these matters in Seeking Alpha articles in the distant past.

Summary

Going "with the current" or sector moves will reduce your losses and maximize your profits. Taking profits during event dates that create upside overreactions will also reduce your losses and maximize your profits. Don't swim against the current, and, above all, preserve capital!

APPENDIX

 Symbol PPS Perf Symbol PPS Perf Winners Losers 1 \$4.06 11.2% 1 MYHI \$0.80 900.0% 1 900.0% 2 (ACBFF) \$1.81 5.2% 2 ACOL \$0.02 581.8% 2 581.8% 3 \$1.70 - 3 PRRE \$1.98 574.6% 3 574.6% 4 \$0.00 - 4 POTN \$0.02 476.9% 4 476.9% 5 (ACOL) \$0.02 581.8% 5 CIIX \$2.24 458.6% 5 458.6% 6 \$3.06 8.1% 6 UAMM \$0.01 417.6% 6 417.6% 7 \$0.00 100.0% 7 CAFS \$0.07 340.7% 7 340.7% 8 \$0.03 -9.7% 8 CRLRQ \$0.00 328.6% 8 328.6% 9 - - 9 BUDZ \$3.68 327.9% 9 327.9% 10 \$0.02 108.6% 10 GRCV \$0.00 300.0% 10 300.0% 11 \$0.78 -14.9% 11 PTOG \$0.00 300.0% 11 300.0% 12 (APHQF) \$4.00 6.4% 12 MJTK \$0.01 291.3% 12 291.3% 13 \$0.11 -5.0% 13 OWCP \$0.67 280.7% 13 280.7% 14 (NASDAQ:AVT) \$46.88 -1.5% 14 SING \$0.04 266.1% 14 266.1% 15 - - 15 LVVV \$0.00 250.0% 15 250.0% 16 \$13.22 52.0% 16 NHLE \$0.04 233.3% 16 233.3% 17 \$0.01 -16.7% 17 NVGT \$0.01 231.8% 17 231.8% 18 \$0.00 200.0% 18 BAYP \$0.00 200.0% 18 200.0% 19 \$0.00 -50.0% 19 USMJ \$0.00 200.0% 19 200.0% 20 \$0.62 1.1% 20 SAGD \$0.11 182.1% 20 182.1% 21 \$0.04 0.0% 21 RMHB \$0.12 179.1% 21 179.1% 22 \$0.00 25.0% 22 KGKG \$0.01 176.0% 22 176.0% 23 \$3.68 327.9% 23 GNBT \$0.01 175.0% 23 175.0% 24 \$1.85 3.7% 24 USEI \$0.00 175.0% 24 175.0% 25 \$0.07 340.7% 25 PNTV \$0.04 160.3% 25 160.3% 26 \$0.43 79.2% 26 CBGI \$0.03 150.0% 26 150.0% 27 \$2.55 -20.3% 27 MJMJ \$0.00 150.0% 27 150.0% 28 (NASDAQ:CARA) \$13.88 49.4% 28 PZOO \$0.00 150.0% 28 150.0% 29 \$0.45 -55.0% 29 LCTC \$16.90 133.1% 29 133.1% 30 \$7.79 44.3% 30 PKPH \$0.09 130.0% 30 130.0% 31 (OTC:CBGI) \$0.03 150.0% 31 MCIG \$0.41 115.2% 31 115.2% 32 \$0.11 72.5% 32 WDRP \$0.01 112.5% 32 112.5% 33 \$0.01 81.0% 33 AMFE \$0.02 108.6% 33 108.6% 34 \$0.03 87.5% 34 VATE \$0.08 106.0% 34 106.0% 35 \$2.80 40.0% 35 AFPW \$0.00 100.0% 35 100.0% 36 \$0.68 5.4% 36 DSCR \$0.00 100.0% 36 100.0% 37 \$0.02 -7.0% 37 FWDG \$0.00 100.0% 37 100.0% 38 \$1.64 -7.9% 38 PLPL \$0.05 96.5% 38 96.5% 39 (OTC:CHUM) \$0.04 38.9% 39 ENCC \$0.01 93.0% 39 93.0% 40 \$2.24 458.6% 40 CBNT \$0.03 87.5% 40 87.5% 41 \$0.33 -5.7% 41 VRCI \$0.02 87.5% 41 87.5% 42 \$1.48 -5.5% 42 IMLFF \$0.32 85.9% 42 85.9% 43 \$0.73 6.6% 43 VPOR \$0.00 83.3% 43 83.3% 44 (CNZCF) \$0.89 10.2% 44 CBMJ \$0.01 81.0% 44 81.0% 45 \$0.41 2.5% 45 IGPK \$0.01 80.0% 45 80.0% 46 \$0.00 328.6% 46 CANL \$0.43 79.2% 46 79.2% 47 \$0.02 13.7% 47 ENDO \$0.04 77.6% 47 77.6% 48 \$0.01 70.0% 48 ESSI \$3.91 76.9% 48 76.9% 49 (CSAX) \$0.14 -12.3% 49 VHUB \$0.02 75.4% 49 75.4% 50 \$0.56 29.2% 50 VRTHF \$0.40 74.7% 50 74.7% 51 \$0.00 50.0% 51 CBIS \$0.11 72.5% 51 72.5% 52 \$0.27 35.9% 52 UBQU \$0.02 70.2% 52 70.2% 53 \$0.00 -60.0% 53 CRWG \$0.01 70.0% 53 70.0% 54 \$0.32 57.5% 54 EDXC \$0.08 69.6% 54 69.6% 55 \$0.00 100.0% 55 SIPC \$0.01 66.7% 55 66.7% 56 \$0.04 46.0% 56 NTRR \$0.51 64.5% 56 64.5% 57 (ECIG) - - 57 HMPQ \$0.04 64.4% 57 64.4% 58 \$0.08 69.6% 58 ENRT \$0.04 60.0% 58 60.0% 59 \$0.00 16.1% 59 QEDN \$0.01 59.2% 59 59.2% 60 \$3.05 -10.1% 60 DPWW \$0.32 57.5% 60 57.5% 61 \$0.01 93.0% 61 SLTK \$0.80 56.9% 61 56.9% 62 \$0.04 77.6% 62 MCPI \$0.27 53.9% 62 53.9% 63 \$0.04 60.0% 63 GTSO \$0.06 53.5% 63 53.5% 64 \$0.00 -26.1% 64 AXIM \$13.22 52.0% 64 52.0% 65 \$0.05 32.4% 65 DEWM \$0.00 50.0% 65 50.0% 66 (OTC:ESSI) \$3.91 76.9% 66 LGBI \$0.00 50.0% 66 50.0% 67 \$0.47 2.0% 67 CARA \$13.88 49.4% 67 49.4% 68 \$0.01 -23.5% 68 PUFXF \$0.25 47.0% 68 47.0% 69 (OTC:FFFC) \$0.00 0.0% 69 EAPH \$0.04 46.0% 69 46.0% 70 (OTC:FITX) \$0.00 0.0% 70 WCIG \$0.01 46.0% 70 46.0% 71 - - 71 CBDS \$7.79 44.3% 71 44.3% 72 \$0.10 -22.2% 72 RFMK \$0.01 42.1% 72 42.1% 73 (OTC:FSPM) \$0.14 40.0% 73 GRPOF \$0.30 42.0% 73 42.0% 74 \$0.00 -41.2% 74 CBSC \$2.80 40.0% 74 40.0% 75 \$0.01 -22.0% 75 FSPM \$0.14 40.0% 75 40.0% 76 \$0.00 100.0% 76 CHUM \$0.04 38.9% 76 38.9% 77 \$0.00 -26.3% 77 STEV \$0.03 38.6% 77 38.6% 78 \$0.03 7.6% 78 DIGP \$0.27 35.9% 78 35.9% 79 \$0.41 22.9% 79 GEAR \$0.00 33.3% 79 33.3% 80 \$0.00 33.3% 80 NGBL \$0.00 33.3% 80 33.3% 81 (GLAG) \$0.01 21.7% 81 ESPH \$0.05 32.4% 81 32.4% 82 \$0.33 27.7% 82 CVSI \$0.56 29.2% 82 29.2% 83 \$0.01 175.0% 83 SPRWF \$1.39 28.0% 83 28.0% 84 \$0.03 -2.1% 84 GLDFF \$0.33 27.7% 84 27.7% 85 \$0.00 300.0% 85 PRMCF \$1.39 26.0% 85 26.0% 86 \$0.10 2.4% 86 BTFL \$0.00 25.0% 86 25.0% 87 (GRPOF) \$0.30 42.0% 87 GYOG \$0.00 25.0% 87 25.0% 88 \$0.20 -13.3% 88 IJJP \$0.00 25.0% 88 25.0% 89 (OTC:GRWC) \$1.14 0.0% 89 GBLX \$0.41 22.9% 89 22.9% 90 \$2.36 0.4% 90 GLAG \$0.01 21.7% 90 21.7% 91 \$0.06 53.5% 91 TBQBF \$1.11 21.4% 91 21.4% 92 (NASDAQ:GWPH) \$115.75 3.6% 92 MJMD \$1.51 20.8% 92 20.8% 93 \$0.00 25.0% 93 MNTR \$1.25 17.9% 93 17.9% 94 \$0.00 -7.1% 94 NGMC \$0.00 17.6% 94 17.6% 95 - - 95 MQTRF \$5.38 17.4% 95 17.4% 96 \$8.06 0.8% 96 VNTH \$0.00 16.7% 96 16.7% 97 \$0.94 -0.7% 97 WTII \$0.00 16.7% 97 16.7% 98 \$0.02 0.0% 98 EFFI \$0.00 16.1% 98 16.1% 99 \$0.04 64.4% 99 KAYS \$0.31 15.9% 99 15.9% 100 (HVST) \$4.75 0.4% 100 CRTL \$0.02 13.7% 100 13.7% 101 \$0.00 -17.5% 101 MDRM \$0.04 12.9% 101 12.9% 102 \$0.00 0.0% 102 NSPDF \$0.30 12.2% 102 12.2% 103 (OTC:IGC) \$0.27 -2.5% 103 ZYNE \$17.39 11.5% 103 11.5% 104 \$0.01 80.0% 104 ACAN \$4.06 11.2% 104 11.2% 105 (OTC:IGRW) \$0.00 0.0% 105 TWMJF \$7.58 11.1% 105 11.1% 106 (NYSE:IIPR) \$18.76 3.1% 106 CNZCF \$0.89 10.2% 106 10.2% 107 \$0.00 25.0% 107 LSCG \$0.04 10.0% 107 10.0% 108 \$0.32 85.9% 108 MGWFF \$0.52 9.2% 108 9.2% 109 \$0.00 -42.1% 109 REFG \$0.14 9.2% 109 9.2% 110 \$0.47 8.3% 110 INSY \$9.99 8.6% 110 8.6% 111 (NASDAQ:INSY) \$9.99 8.6% 111 NEWC \$0.02 8.4% 111 8.4% 112 \$0.00 -14.3% 112 INQD \$0.47 8.3% 112 8.3% 113 \$1.11 5.7% 113 AERO \$3.06 8.1% 113 8.1% 114 \$0.31 15.9% 114 NMUS \$0.33 8.0% 114 8.0% 115 \$0.01 176.0% 115 GBHPF \$0.03 7.6% 115 7.6% 116 \$2.77 -13.4% 116 SRNA \$0.22 7.5% 116 7.5% 117 \$0.00 0.0% 117 CNBX \$0.73 6.6% 117 6.6% 118 \$16.90 133.1% 118 APHQF \$4.00 6.4% 118 6.4% 119 \$0.44 -9.3% 119 IVITF \$1.11 5.7% 119 5.7% 120 \$0.00 50.0% 120 CCAN \$0.68 5.4% 120 5.4% 121 \$0.04 10.0% 121 ACBFF \$1.81 5.2% 121 5.2% 122 \$0.00 250.0% 122 STWC \$0.44 3.8% 122 3.8% 123 - - 123 BXNG \$1.85 3.7% 123 3.7% 124 (OTC:MBOO) - - 124 GWPH \$115.75 3.6% 124 3.6% 125 \$0.41 115.2% 125 IIPR \$18.76 3.1% 125 3.1% 126 \$0.08 2.6% 126 MCOA \$0.08 2.6% 126 2.6% 127 \$0.27 53.9% 127 CPMD \$0.41 2.5% 127 2.5% 128 \$2.54 -7.3% 128 GRNH \$0.10 2.4% 128 2.4% 129 - - 129 ETST \$0.47 2.0% 129 2.0% 130 \$0.15 -25.0% 130 BLOZF \$0.62 1.1% 130 1.1% 131 \$0.04 12.9% 131 MSRT \$1.04 1.0% 131 1.0% 132 \$0.00 0.0% 132 HLIX \$8.06 0.8% 132 0.8% 133 \$0.52 9.2% 133 GRWG \$2.36 0.4% 133 0.4% 134 \$0.04 -12.0% 134 HVST \$4.75 0.4% 134 0.4% 135 (MJMD) \$1.51 20.8% 135 BLPG \$0.04 0.0% 136 \$0.00 150.0% 136 FFFC \$0.00 0.0% 137 \$0.16 -19.1% 137 FITX \$0.00 0.0% 138 \$0.92 -7.7% 138 GRWC \$1.14 0.0% 139 \$0.01 291.3% 139 HMKTF \$0.02 0.0% 140 (MMHC) \$0.00 -14.3% 140 ICNM \$0.00 0.0% 141 \$1.25 17.9% 141 IGRW \$0.00 0.0% 142 \$0.02 -6.0% 142 LATF \$0.00 0.0% 143 \$5.38 17.4% 143 MEDT \$0.00 0.0% 144 (MRPHF) \$0.93 -10.3% 144 NWWTF \$0.03 0.0% 145 \$1.04 1.0% 145 OSLH \$0.00 0.0% 146 \$0.00 -11.5% 146 SLNX \$0.00 0.0% 147 (OTC:MYEC) \$0.00 -19.1% 147 SNNC \$0.18 0.0% 148 \$0.80 900.0% 148 UMBBF \$0.02 0.0% 149 \$0.82 -32.1% 149 UNGS \$0.00 0.0% 150 (OTC:NEWC) \$0.02 8.4% 150 VPCO \$0.00 0.0% 151 \$0.00 33.3% 151 HLSPY \$0.94 -0.7% 1 -0.7% 152 \$0.00 17.6% 152 OGRMF \$2.13 -0.7% 2 -0.7% 153 \$0.04 233.3% 153 AVT \$46.88 -1.5% 3 -1.5% 154 \$0.33 8.0% 154 SMG \$94.03 -1.6% 4 -1.6% 155 (OTC:NRTI) \$0.00 -50.0% 155 GRCU \$0.03 -2.1% 5 -2.1% 156 \$0.30 12.2% 156 TRTC \$0.31 -2.3% 6 -2.3% 157 \$0.51 64.5% 157 IGC \$0.27 -2.5% 7 -2.5% 158 \$0.01 231.8% 158 VAPI \$0.09 -2.6% 8 -2.6% 159 \$0.03 0.0% 159 VAPR \$0.01 -3.4% 9 -3.4% 160 \$0.16 -13.8% 160 ZDPY \$2.05 -3.8% 10 -3.8% 161 \$2.13 -0.7% 161 ATTBF \$0.11 -5.0% 11 -5.0% 162 \$0.00 -11.1% 162 CNAB \$1.48 -5.5% 12 -5.5% 163 (OTC:OSLH) \$0.00 0.0% 163 CLSH \$0.33 -5.7% 13 -5.7% 164 \$0.67 280.7% 164 MQPXF \$0.02 -6.0% 14 -6.0% 165 \$0.08 -13.5% 165 CGRA \$0.02 -7.0% 15 -7.0% 166 \$0.02 -19.6% 166 HALB \$0.00 -7.1% 16 -7.1% 167 \$0.09 130.0% 167 MDCL \$2.54 -7.3% 17 -7.3% 168 \$0.05 96.5% 168 MJNE \$0.92 -7.7% 18 -7.7% 169 \$0.11 -26.1% 169 CGRW \$1.64 -7.9% 19 -7.9% 170 (OTC:PMCM) - - 170 TECR \$0.45 -9.1% 20 -9.1% 171 (OTC:PNPL) \$1.50 -40.0% 171 LDSYF \$0.44 -9.3% 21 -9.3% 172 \$0.04 160.3% 172 SPLIF \$0.18 -9.5% 22 -9.5% 173 \$0.02 476.9% 173 AGTK \$0.03 -9.7% 23 -9.7% 174 (PRMCF) \$1.39 26.0% 174 EMMBF \$3.05 -10.1% 24 -10.1% 175 \$1.98 574.6% 175 MRPHF \$0.93 -10.3% 25 -10.3% 176 (OTC:PTOG) \$0.00 300.0% 176 OPMZ \$0.00 -11.1% 26 -11.1% 177 \$0.25 47.0% 177 MYDX \$0.00 -11.5% 27 -11.5% 178 \$0.00 150.0% 178 MJLB \$0.04 -12.0% 28 -12.0% 179 - - 179 REVI \$0.05 -12.2% 29 -12.2% 180 \$0.01 59.2% 180 CSAX \$0.14 -12.3% 30 -12.3% 181 (RAMO) - - 181 GRSO \$0.20 -13.3% 31 -13.3% 182 \$0.14 9.2% 182 KSHB \$2.77 -13.4% 32 -13.4% 183 \$0.05 -12.2% 183 OXIS \$0.08 -13.5% 33 -13.5% 184 \$0.01 42.1% 184 NXTTF \$0.16 -13.8% 34 -13.8% 185 \$0.12 179.1% 185 ITNS \$0.00 -14.3% 35 -14.3% 186 \$0.07 -16.1% 186 MMHC \$0.00 -14.3% 36 -14.3% 187 \$0.11 182.1% 187 AMMJ \$0.78 -14.9% 37 -14.9% 188 \$0.02 -20.0% 188 RSSFF \$0.07 -16.1% 38 -16.1% 189 \$0.04 266.1% 189 VAPE \$0.01 -16.1% 39 -16.1% 190 \$0.01 66.7% 190 XXII \$0.91 -16.4% 40 -16.4% 191 \$0.00 0.0% 191 BABL \$0.01 -16.7% 41 -16.7% 192 (SLTK) \$0.80 56.9% 192 THCBF \$0.61 -17.4% 42 -17.4% 193 (NYSE:SMG) \$94.03 -1.6% 193 ICBU \$0.00 -17.5% 43 -17.5% 194 \$0.18 0.0% 194 MJNA \$0.16 -19.1% 44 -19.1% 195 \$0.18 -9.5% 195 MYEC \$0.00 -19.1% 45 -19.1% 196 \$1.39 28.0% 196 PHOT \$0.02 -19.6% 46 -19.6% 197 \$0.22 7.5% 197 SGBY \$0.02 -20.0% 47 -20.0% 198 \$0.03 38.6% 198 CANN \$2.55 -20.3% 48 -20.3% 199 \$0.44 3.8% 199 FUTL \$0.01 -22.0% 49 -22.0% 200 \$0.00 -29.7% 200 FRLF \$0.10 -22.2% 50 -22.2% 201 (TBQBF) \$1.11 21.4% 201 FBEC \$0.01 -23.5% 51 -23.5% 202 \$0.45 -9.1% 202 MDEX \$0.15 -25.0% 52 -25.0% 203 \$0.61 -17.4% 203 ERBB \$0.00 -26.1% 53 -26.1% 204 (NASDAQ:TRPX) - - 204 PMCB \$0.11 -26.1% 54 -26.1% 205 \$0.31 -2.3% 205 GBHL \$0.00 -26.3% 55 -26.3% 206 (TWMJF) \$7.58 11.1% 206 TAUG \$0.00 -29.7% 56 -29.7% 207 \$0.01 417.6% 207 NDEV \$0.82 -32.1% 57 -32.1% 208 \$0.02 70.2% 208 PNPL \$1.50 -40.0% 58 -40.0% 209 (UMBBF) \$0.02 0.0% 209 FTPM \$0.00 -41.2% 59 -41.2% 210 \$0.00 0.0% 210 INCC \$0.00 -42.1% 60 -42.1% 211 - - 211 BLDV \$0.00 -50.0% 61 -50.0% 212 \$0.00 175.0% 212 NRTI \$0.00 -50.0% 62 -50.0% 213 \$0.00 200.0% 213 CBCA \$0.45 -55.0% 63 -55.0% 214 \$0.01 -16.1% 214 DIRV \$0.00 -60.0% 64 -60.0% 215 (VAPI) \$0.09 -2.6% 216 \$0.01 -3.4% 217 \$0.08 106.0% 218 \$0.02 75.4% 219 \$0.00 16.7% 220 (NASDAQ:VPCO) \$0.00 0.0% 221 \$0.00 83.3% 222 (OTC:VRCI) \$0.02 87.5% 223 \$0.40 74.7% 224 \$0.01 46.0% 225 \$0.01 112.5% 226 \$0.00 16.7% 227 (NYSEMKT:XXII) \$0.91 -16.4% 228 \$2.05 -3.8% 229 (NASDAQ:ZYNE) \$17.39 11.5% N=229 \$2.05 51.0% N=214 \$2.19 54.5% N=134 95.1% N=64 -16.6%

Disclosure: I am/we are long BLOZF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.