Can Big Tobacco Ignite This 80% Loser

There are few events that can send a cannabis stock soaring like an investment from big tobacco.

Do you remember what happened on December 7, 2018?

That’s when Altria Group (MO), one of the largest tobacco companies in the world and maker of Marlboro cigarettes, invested $1.8 billion into Cronos Group (CRON), one of the largest cannabis companies in Canada and the world. Investors loved the news, sending shares of Cronos soaring. Cronos proceeded to jump almost 148% in the eight weeks while the rest of the cannabis sector gained 24%. It looks like a similar megadeal is in the works.

Big Tobacco

Auxly Cannabis Group (XLY, CBWTF) is a mid-sized cannabis company headquartered in Canada.

It has a market cap of $380 million and annual cannabis cultivation capacity of 100K kilos.

Auxly has one of the most unique business models in the Canadian cannabis industry – it calls itself a “streaming cannabis company.” Here’s what that means. Auxly is basically a wholesaling, cultivating and selling cannabis to some of the largest retailers in the industry. In order to meet these supply needs, Auxly owns an impressive portfolio of cannabis cultivation facilities that it expects to produce more than 100,000 kilograms in the next 12 months. Continue reading "Can Big Tobacco Ignite This 80% Loser"

Former Canopy CEO Loves This Stock

CEOs have an insider’s view that is second to none. When they talk, it pays to listen closely. They drop clues that can be used to find great investments. That’s what happened last week with a rock star CEO in the cannabis industry.

Bruce Linton founded Canopy Growth Corp (CGC, WEED) in 2013. Back then, Canopy was only worth $100 million – but in the next six years, Linton grew Canopy into a $15 billion global juggernaut and the largest cannabis company in the world. That’s one of the fastest growth rates in the history of the stock market. It made early investors rich and Linton was widely considered the Pied Piper of the global cannabis industry.

If the cannabis industry had a rock star CEO – it was Bruce Linton. His insight and connections in the cannabis industry are unparalleled. That’s why it came as such a big surprise last week when Constellation Brands (STZ), which owns 38% of Canopy, fired Linton. After the news hit the wire, Linton quickly called into CNBC and dropped a hot investment tip about one of his favorite cannabis companies that cannabis investors need to know about.

Kevin O’Leary, the billionaire investor famous for his role on NBC’s Shark Tank, asked Linton if there were any cannabis companies he would consider investing in. Here’s what Linton said. Continue reading "Former Canopy CEO Loves This Stock"

2 Red Hot Cannabis Stock IPOs To Play

Stock IPOs are one of Wall Street’s most exciting events. When shares of a company begin trading on the stock exchange, investors get their first shot to invest in an exciting, young company. These early investments can also turn out to be very profitable. That is particularly true for the cannabis industry.

Although there is plenty of risk in cannabis stock IPOs, many have turned into profit gushers in the last few years.

One example is Cresco Labs (CL, CRLBF). Cresco is one of the largest cannabis companies in the U.S. This stock is a direct play on Illinois legalizing recreational cannabis. Since going public on the Canadian Securities Exchange in December, shares have almost doubled.

LLLL

New Cannabis IPOs Hitting The Street

Two new cannabis IPOs just began trading this week. That means that investors can now buy shares in these companies and do so ahead of the curve.

One is a play on California’s high-growth cannabis market. Continue reading "2 Red Hot Cannabis Stock IPOs To Play"

It's A Good Thing That Cannabis Is Still Illegal In The U.S.

Investors interested in cannabis stocks are facing some very conflicting opinions.

On one side you have the skeptics. That’s the large group of voices shouting that cannabis is the worst investment ever.

On the other side, you have the get-rich-quick crowd. That’s the group of people who are convinced that owning cannabis stocks for a few years is a quick path to riches and early retirement.

The truth usually lies somewhere in the middle – and that’s true for cannabis stocks.

I think cannabis stocks are a good investment. I also think the cannabis industry is in a position to see a big expansion in the next two years.

While that might not send cannabis stocks to the moon, I do expect it to deliver market-beating gains for the sector that could give your portfolio a very nice boost.

Cannabis Is Still Illegal in the U.S. – That’s a Good Thing for Investors

In a recent article from Kiplinger titled Buy Marijuana Stocks Now? You’d Have to Be Stoned, the author suggests that investors should avoid the sector because cannabis is still illegal on the federal level. Continue reading "It's A Good Thing That Cannabis Is Still Illegal In The U.S."

Telling Charting Pattern For Oversold Cannabis Stock

The cannabis sector is now the most oversold it has been in the last two years.

Truly, it's creating one of the best buy opportunities we've seen in quite some time.

In this week's issue of my free newsletter, I review what I believe is the most oversold cannabis stock.

This stock's chart is making a repeat pattern that typically precedes a big rally. It has happened three times in three years and I believe it's happening again.

Oversold Cannabis Stock

In my newsletter, I'll share that chart pattern with you and where I think this stock is headed.

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Best wishes,
Michael Vodicka
Editor, Cannabis Stock Trades