Don't take it personally.
If someone disagrees with your thesis around a stock, the first reaction is often anger. You want to fight to defend your position. How dare they attack your thinking or call you wrong? This is your money and obviously they want you to lose your money.
It would be a rare instance when someone goes after your holding with a personal vendetta in mind. That, too, is an emotional decision. It's a surefire way to lose.
What matters is your thesis and timeframe around an investment or a trade.
Let's take Sundial Growers (SNDL) as an example. The stock has amassed a cult following, so it has many committed traders. I'd argue more than a handful are over-committed either emotionally or financially based on social media reactions. You see, if you mention anything negative about the company, you'll receive an immediate response. Few are friendly.
Yes, Sundial finally has cash on their balance sheet, ridding themselves of a mountain of debt while accumulating a mountain of shares outstanding (1.45 billion). Cash is great but my hesitation stems from the fact the company had roughly $70 million in write-downs, which included poor management of inventory.
Sundial has used some of their newfound cash to acquire a special purpose vehicle that holds senior secured debt in Zenabis (ZBISF) . A few weeks later, they issued a notice of default.
One of two things happened, in my view:
1. They acquired it knowing of the default and intend to use this as a method to acquire Zenabis on the cheap.
2. They performed terrible due diligence.
The likely conclusion is number one. At least I hope so. And while it may be a savvy business move in the long run, Sundial just got out of debt, still faces Nasdaq delisting, and has a history of nasty property, plant, equipment, and inventory write-downs.
Do I really want them embroiled in a legal battle chasing after assets and risking $50 million? Especially chasing a company that is on its fourth CEO in the span of two years, shedding assets on the cheap?
But my view is long-term. I don't believe long-term this is a cannabis company worth owning when there so many better managed, cash flow positive, and even profitable companies out there. If you want aggressive, then there are companies offering a unique angle on exposure to cannabis, hemp, CBD, and THC.
If you want to scalp or swing trade Sundial, I get it. As I've said, I'll trade squirrel droppings if I think I can make money doing it, but I don't con myself into believing it is something it's not. I know the longer I hold it, the more I'm going to notice the smell. Even worse, it's going to be more difficult to wash that smell from my portfolio.
But before you react, before you take it personally, get an understanding of the story being told and compare it to your story. Different time frames will often have different conclusions. They aren't mutually exclusive, meaning both can be right and both can be wrong.
What I've found is the short-term picture is generally driven by emotions like fear and greed while longer term outcomes are a result of fundamentals/financial performance and logic. And none of it is personal.
Please note that due to factors including low market capitalization and/or insufficient public float, we consider ZBISF to be a small-cap stock. You should be aware that such stocks are subject to more risk than stocks of larger companies, including greater volatility, lower liquidity and less publicly available information, and that postings such as this one can have an effect on their stock prices.