Value Investing Buying long term Puts on Marijuana stocks?

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Buying long term Puts on Marijuana stocks? Posted: 02 Feb 2019 03:35 PM PST Normally I don't do hedging or make short bets on anything and I focus on buying stocks at a discount to the PV of future cash flows. However, the weed stocks have my attention because of the ridiculous valuations. CRON trades at ~315x Sales and has not had a single cash flow positive or profitable quarter. I don't like the idea of shorting because who knows how high it could go, so I am interested in buying Put options to put a floor on my downside risk. Specifically, I'm looking at Put options on $CRON that expire 1/15/21, with a strike around 17-20. Anyone else looking to bet against the weed stocks? If so, how are you doing it and are there any other names that you believe are more overvalued than CRON? submitted by /u/Johnr1525 [link] [comments]

Using EPS and EPS Growth in a DCF (pros and cons?) Posted: 02 Feb 2019 11:59 PM PST I recently started to study a method of valuation outlined in Phil Town's rule one investing and in his book, Phil advocates using an EPS (TTM) and an EPS Growth rate to discount to an intrinsic value. I have 2 questions I am hoping some of you could bring clarity. Using EPS instead of FCF in a DCF. The main motivation as I understand it is that stock price follow more Earnings than FCF (this was outlined as well in this study: https://econpapers.repec.org/article/eeejaecon/v_3a18_3ay_3a1994_3ai_3a1_3ap_3a3-42.htm). My concern here is that earnings as far as I can tell are easily more manipulated than FCF (i.e: buybacks?) - what are some concerns with this and do you advocate using EPS or FCF? Using Equity Growth as a proxy for EPS Growth. This one I am still scratching my head. Could someone point me to a resource or provide a quick explanation why Equity Growth will be in many case a good proxy for EPS Growth? especially when the company wouldn't do any buybacks? ​ ​ submitted by /u/naxabiru [link] [comments]

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