Cannabis Corner: Winners and Losers

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street.

The divergence we highlighted last week in Big Cannabis continues. There are clear winners and losers in the group now.

Over the past month, Canopy Growth Corp. (NYSE:CGC) and my personal favorite cultivator Aphria Inc. (NASDAQ:APHA) have rebounded a breathtaking 40 percent and 29 percent, respectively. They’re obvious winners.

But Aurora Cannabis Inc. (NYSE:ACB) has gone nowhere over that period and Tilray Inc. (NASDAQ:TLRY) is down 13 percent. That stock really can’t afford to miss the bounce. It has fallen 60 percent since June.

CGC has distinguished itself with a clear show of confidence from strategic investor Constellation Brands Inc. (NYSE:STZ), which installed its own chief financial officer as head of the once-leaderless cannabis company.

As someone who’s run my share of corporate restructuring programs, this kind of parachute appointment is about more than simply moving executive talent where it’s most needed. The real goal here is to permanently align the companies culturally.

That’s a good thing on Wall Street because it means the world’s biggest beer bottler sees long-term potential here. STZ isn’t going to write off its investment in legal cannabis and walk away.

And as for APHA, focusing on the medical market has been a steadier route to profitability. Nervous investors can see that this is much less speculative than any of the recreational stocks.

Now tell me in short words what makes ACB or TLRY special or even what differentiates them from each other. All the typical investor can see is that they both distribute a lot of dried plant matter and are struggling to achieve scale before they run out of money.

Exclusive  This One Investment Survived the Bloodbath

Given that kind of choice, money eventually will flow from the generic commodity names into those with a more compelling proposition. That’s simply how the market works.

We’ll keep watching that flow. Once Wall Street figures out that a few of these stocks are bouncing back, there might be a trickle-down effect to help ACB and TLRY join the party.

In the meantime, CGC and APHA have finally captured 50-day support and have a long way to rally before hitting resistance. They’ve fallen far. Those looking for a lot of upside can have a lot of fun investing here.

This is a buying opportunity if you’re selective. We’re choosy in my Turbo Trader Marijuana Millionaires Portfolio. Satisfaction may be on the way.

Like This Article?
Now Get Mark's FREE Special Report:
3 Dividend Plays with Sky-High Returns

This newly-released report by a top-20 living economist details three investments that are your best bets for income and appreciation for the rest of the year and beyond.

Get Access to the Report, 100% FREE


img
previous article

Big Tech has gotten so huge that all it takes is a few Silicon Valley giants nudging into trillion-dollar territory to keep the S&P 500 on its record-breaking trajectory. If you haven’t updated your portfolio since 2015, that’s great news. We have plenty of great news to share with you today. Apple Inc. (NASDAQ:AAPL) is up a breathtaking 77 percent this year. Microsoft Corp. (NASDAQ:MSFT) and its 53 percent year-to-date (YTD) performance aren’t f

PREMIUM SERVICES FOR INVESTORS

Dr. Mark Skousen

Named one of the "Top 20 Living Economists," Dr. Skousen is a professional economist, investment expert, university professor, and author of more than 25 books.

Product Details

LEARN MORE HERE

Bryan Perry

A former Wall Street financial advisor with three decades' experience, Bryan Perry focuses his efforts on high-yield income investing and quick-hitting options plays.

Product Details

LEARN MORE HERE

Jim Woods

Jim Woods has over 20 years of experience in the markets from working as a stockbroker,
financial journalist, and money manager. As well as a book author and regular contributor to
numerous investment websites, Jim is the editor of:

Product Details

LEARN MORE HERE

Bob Carlson

Bob Carlson provides independent, objective research covering all the financial issues of retirement and retirement planning. In addition, Bob serves as Chairman of the Board of Trustees of the Fairfax County (VA) Employees’ Retirement System, which has over $2.8 billion in assets.

Product Details

LEARN MORE HERE

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. Since 2010, Hilary's financial publications have provided stock analysis and investment advice to her subscribers:

Product Details

LEARN MORE HERE

Jon Johnson

Jon Johnson's philosophy in investing and trading is to take what the market gives you regardless if that is to the upside or downside. For the past 21 years, Jon has helped thousands of clients gain success in the financial markets through his newsletters and education services:

Product Details

LEARN MORE HERE

DividendInvestor.com

Used by financial advisors and individual investors all over the world, DividendInvestor.com is the premier provider and one-stop shop for dividend information and research.

Product Details

Popular tools include our proprietary Dividend Calendar, Dividend Calculator, Dividend Score Card, and many more.

LEARN MORE HERE