Don’t drop your munchies I was referring to marijuana stocks.
Happy 420 everyone! This post is about getting your portfolio as high as you can so you too can one day giggle all the way to the bank and forget why you went. 🤔 Not too many folks realize how quickly the marijuana industry is growing or the many companies competing for the number one spot. I’ll highlight a few of my favorites but as always do your own due diligence and invest wisely.
I’ll begin with the largest producer in Canada, Aurora Cannabis. Ticker symbol ACB and currently trading far below it’s competitors at $9.11 a share. (Price as of 4/17/19) I’m long ACB which means I plan on holding onto the stock for an extended period of time. With its growth and the outstanding team they’re adding to their leadership they’re poised to suck the smoke out of the smaller companies.
The stock price is up 1,904.41% 😲 over the past five years and other than some worries about dilution of shares it doesn’t appear to be slowing anytime soon. The focus appears to be aggressive growth in as many countries as possible. Recently they were one of three companies awarded licenses in Germany to grow and distribute cannabis. Most recently Bank Of America decided to list a few marijuana stocks with a buy rating on ACB. Their analysts believe the price will be rising to $11.00. As for myself and my financial advisor we are starting to have dreams where it breaks $100 per share. Google the news for this to gather more information. If only the U.S. would get their heads out of their asses and legalize it across the board. 🙄 You should see the size of their indoor facilities scattered around the globe!
Next up we have Canopy Growth. Ticker symbol CGC. They haven’t been publicly traded as long as others in this sector. Sector refers to a specific type of industry such as automobiles, technology or yadda yadda. . . you get the point. Pulling up their chart shows a history of less than one year. CGC is currently trading at $40.60 a share. During the first year they have grown 36.95% which is impressive in the stock market overall but not comparatively to its peers.
As far as market cap goes CGC ranks at the top. History however is not indicative of future results. One of the benefits of having marijuana companies increase in size is the ability to send lobbyists around the world. It’s an ugly truth but if you haven’t realized how major corporations get laws changed in their favor you need to pay more attention. It’s only a matter of time before full legalization is a reality and I believe it’ll happen in our lifetime.
Other than the 14% decline in the stock price after earnings this tends to be a favorite amongst Marijuana investors. Ticker symbol APHA. As of 04/15/19 it was trading at $8.70 down from the $10.70 the day prior. This can be attributed to less than positive earnings for the first quarter of 2019. (-$0.15 per share) Not only did APHA stock tumble this week but it also dragged the rest of the party down with it. This created an amazing buying opportunity for those contemplating hopping in and at the same time drove the anxiety levels up for those who bought in at the highs.
It’s common for the price of a stock to drop temporarily if the earnings don’t meet or beat expectations. This has a ripple effect on similar companies even if everyone else is doing fine. Short term traders tend to overreact and assume the whole ship is going down even before they’ve finished building it.
I believe 2019 will be a year for Marijuana companies like APHA to prove their worth to investors. Who will still be around in a year is as clear as some murky ass bong water. For all we know the results for these new buds could be hiding behind a puff of smoke. Either success or Batman. I hope it’s Batman.
Edit: After seeing this stock drop over 20% in price over the week while at the same time reading positive reviews and outlooks I couldn’t help but place a swing trade. Bank Of America had also listed this company with a price target of $10 per share. Seeing it only at $7.90 and already in an uptrend I bought 61 shares and plan on dumping them at $10.01. Hopefully the future price doesn’t make me look like too much of a fool after cashing out.
I chose to include Hexo in the smoking circle because they’ve just recently gone public, which is to say started issuing out shares to investors in order to raise capitol. They currently have one of the highest buy ratings on the Robinhood platform and are currently trading at $6.02 under the ticker symbol HEXO.
They’ve been trading for just under three months so it’s difficult to tell how their stock price fluctuates. From the initial opening bell they have increased 7.50% and I’m curios to see where they’ll end up in one years time. Especially with the hype from message boards like yahoo finance and Reddit.
Bank Of America had also listed this company as promising so with a few taps with my finger I picked up 69 shares at $6.56. It has only been a few hours since the purchase and I’m up 9.45% with the price resting at $7.18 a share. Let’s see your bank offer those kind of rates. 😉
Next month will be interesting. ACB and a few other larger players will be announcing earnings. The resulting price movement in the stock won’t be little. I predict a considerable size drop mainly due to the industry still being in its infancy. Once these weed corporations stop gobbling up competitors and buying assets there should be a explosion of growth. The world will figure out which of these companies will be the next Microsoft or Apple of the cannabis world once the focus is on profits and innovation.
As for now I’m holding on to my ACB and encourage you all to sell your shares so that I may acquire them. 😎 Disclosure: Holding 770 shares of Aurora and don’t plan on selling them until the price is in the triple digits.
Happy trading everyone and may your 2019 be as profitable as your anxiety hopes it’ll be.