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MedReleaf Corp.
(TSX: LEAF)
MedReleaf Corp.
(OTC: SGMD) U.S. Ticker for those wanting to diversify
I would like to start the year off by looking at MedReleaf. Having just signed a deal with Shoppers Drug Mart which happens to be the largest pharmacy in Canada is a great way to wrap up 2017. MedReleaf is clearly doing well and is a company that many smaller ones aspire to be like in the future. If you recall, earlier in December Aphria had signed a deal with Shoppers as well. While these two companies are different in ways, they do have some underpinnings which make them similar in a sense. And we can use this to our advantage when trying to understand potential price movements.
It is natural in our daily lives to compare things. For example: Before we go grocery shopping we might check the flyers to see where the best deals are or perhaps we compare the quarter mile times of a Porsche 911 vs the Dodge Viper. Whatever be your case, know it is simply our human nature. Note: I am assuming you are human, if not, don’t worry. You can still apply this charting technique. We can plot prices of other companies on a chart against the one we are comparing. For argument's sake, let's assume that MedReleaf and Aphria are equal. This is what happens when you plot one against the other. The price of Aphria on this chart is displayed to scale relative to MedReleaf. The blue box and lines on the chart display how the market has responded since Aphria announced it’s deal. The green circled area is when MedReleaf made it’s announcement. We cannot be 100% certain where the prices will go from here, but if we make some assumptions we can project that MedReleaf could follow a similar path due to the significance of such a huge deal.