The Diary

March 20, 2021

Welcome to The Diary, the newsletter for essential small-cap investing intelligence, presented twice a month by Dear Retail. We hope you enjoyed our last issue – if you missed it, you can find it here.

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In This Issue:

Sector Moves: Gold – Dear Retail breaks down why, unlike its past bull runs, gold isn’t going to take a huge dip before its next big run
Opinion: How Canada Blew its Chance to be the World Leader in Cannabis, Part 1 – if you bought a promising Canadian cannabis stock that underperformed, here’s why
M&A Activity: Major Gold Companies are Snapping up Canadian Juniors – Dear Retail gives you a rundown of who’s buying what, and why
Hot IPO Alert: Gage Cannabis Co – this vertically integrated US-based cannabis cultivator, licenser and retailer with several top-selling brands under its belt is already seeing record-breaking sales
Advice: How Big Tech Screws Retail Investors – and what you can do about it

Sector Moves

Why Gold Will Finally Shine As We Enter Market Down Leg

Why Gold Will Finally Shine As We Enter Market Down Leg

Despite its reputation, gold hasn’t really been the safe haven when things have gotten really ugly in the past.

In 2008, before starting a three-year bull run, gold dropped 30% in the panic sell-off.

In March 2020, when Coronavirus emerged and the markets tanked, gold fell 15% and gold stocks were hammered as investors scrambled to liquidate assets – including gold.

Both of those times — when financial systems were stretched and investors most panicked — gold wasn’t a true safe haven at all.

In fact, the best way to play gold in both times was not to buy in before the crisis at all.

But this time around it’s looking like the time to buy is actually before the next phase of the markets begins, because gold may not dip big like it did before its runs in 2008 or 2020.

Here’s why. Continue reading here.

Opinion

How Canada Blew Its Chance to Be The Cannabis World Leader – Part 1

Back in my hippie days (I’m old), I remember buying a bag of weed that reeked of mold.

Obviously I couldn’t complain to the Better Business Bureau about it.

But I was able to exchange it for a fresher batch.

(My source knew he risked a word-of-mouth backlash if he didn’t make things right.)

Now – some 40 years later – most North Americans don’t have to sneak off to some back alley for cannabis.

That’s especially true in Canada.

The reason, of course, is that back in 2018 the Canadian government legalized recreational marijuana.

government-has-screwed-retirees

Today it’s nearly 2 ½ years later.

Yet Canada is still just the second country (along with Uruguay) where pot is completely legal.

You’d think by now Canada would be a global cannabis leader.

That hasn’t happened.

Instead, Canada showed the world exactly how NOT to roll out legal weed.

Case in point – the province of Ontario.

Read the rest of this article here.

Recent M&A

Gold Companies are Snapping up Canadian Juniors

M&A activity in the gold sector has been hot, hot, hot this month

Since March 10th we’ve seen three major acquisitions of junior mining companies – which is not surprising when you consider that gold stocks have been underperforming of late. Gold producers that are sitting on a lot of cash have been able to capitalize on discounted prices, and with interest rates being so low, there’s also a lot of cheap money available to finance these kinds of M&A transactions.

Despite a shaky chart over the last few months, we remain bullish on gold in the long-term. We think there’ll be a lot more M&A deals happening in the sector in the coming months, especially acquisitions of juniors that are in possession of high quality deposits that are in production or near production.

Let’s take a look at what’s happened this month. Continue reading here.

Hot IPO Alert

Gage Cannabis Co.

Gage Cannabis Co.

The Company:
Headquartered in Ayers, Michigan, Gage Cannabis Co. is a cultivator, curator, and retailer of high quality medicinal and recreational cannabis products. Gage also brings internationally recognized cannabis brands to market.

Gage is one of the largest vertically integrated operators in Michigan, which is the sixth largest adult-use cannabis market in the US in terms of sales, and the second largest medical cannabis market in the US. Gage has won several industry awards for dispensary design and branding, which it attributes to its “consumer-centric” culture.

Keep reading this article here.

Advice

How Big Tech Screws Retail Investors (And What To Do About It)

I once had an online business that sold holistic health information.

And over the 13 years I ran it, monthly income grew from $0 to about $3,000.

Not a fortune… but it was a hobby business I enjoyed (and I didn’t mind the extra money).

All that changed in 2012.

That’s when Google unleashed its Penguin algorithm.

See, Penguin gave “authority” health websites (like WebMD) algorithmic advantages over mine.

So I went from a top 5 ranking for my best keyword searches to virtually disappearing from the Google index…

Overnight.

How Big Tech Screws Retail Investors (And What To Do About It)

As you can imagine, my income plunged.

The Penguin algo also ruined countless other small business websites.

Why am I sharing this story with you?

Because…

Continue reading here.

Are You Ready For The Next Market Move?

“Warning Signs” – Goldman Sachs
Yale’s Crash Confidence Index Higher Than Dot-Com Bubble Top
Crucial New Research: Three Fortune-Protecting Rules For Even The Toughest Markets

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