Another ask would be by side coverage initiations. All we need is a smaller by side manager to buy the MSO's and call up their buddies execution shops to start covering. This could be a great set up - we just need price stabilization.
A lot of recent commentary on what institutional are looking for to start buying cannabis stocks. Been in the finance industry for 26 years and 17 years in hedge funds. IMO, they need higher average daily trading volumes and they need to meet certain market cap thresholds. The market cap isn't a problem but ADV is and institutional investors won't trade in and out of a stock unless they know that they could get in and out of a stock. Watch those volumes boys!
So what ADV levels to look for. Think how a fund trades. Many keeps a cap on their buys to <10% of adv. even if they buy, their position sizing will remain small until they get comfortable on the adv - in a world of SMAs, with one day notice, liquidity is paramount in portfolio mgmt.
Another ask would be by side coverage initiations. All we need is a smaller by side manager to buy the MSO's and call up their buddies execution shops to start covering. This could be a great set up - we just need price stabilization.
A lot of recent commentary on what institutional are looking for to start buying cannabis stocks. Been in the finance industry for 26 years and 17 years in hedge funds. IMO, they need higher average daily trading volumes and they need to meet certain market cap thresholds. The market cap isn't a problem but ADV is and institutional investors won't trade in and out of a stock unless they know that they could get in and out of a stock. Watch those volumes boys!
So what ADV levels to look for. Think how a fund trades. Many keeps a cap on their buys to <10% of adv. even if they buy, their position sizing will remain small until they get comfortable on the adv - in a world of SMAs, with one day notice, liquidity is paramount in portfolio mgmt.