Cannabis Corner: No ‘Recreation’ Here

Hilary Kramer

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

Whenever the market stumbles, the cannabis group goes over a cliff. We’ve seen that process play out again this week, with the marijuana stocks I track dropping another 20%.

Aurora Cannabis Corp. (NYSE:ACB) has fallen nearly 90% since peaking last spring, joining CannTrust Holdings Inc. (NASDAQ:CTST) and Hexo Corp. (NASDAQ:HEXO) in catastrophic territory. CTST is fighting to keep its stock listed after losing its licenses. That company is now worth $40 million less than its reported cash on hand. That 90% plunge brings CTST to the catastrophe levels where ACB is now.

If the second-biggest company in this industry has reached this point, a bounce is coming. First, however, we need to see real consolidation in what’s otherwise an overly fragmented field.

ACB is on track to book $280 million in sales this year. The numbers I’ve seen suggest that people around the world will buy $15 billion in cannabis in that period.

When the second-biggest player doesn’t even have a 2 percent share of the overall market, there’s vast room for smart executives to build a competitive business, starve rivals and grow the companies big enough to turn profits.

Until then, it’s literally all fun and games for most of these people. Most cannabis executives are amateurs in the best possible sense: they love their industry and their product.

Their enthusiasm built a recreational boom. But it’s going to take real hard-headed business sense to make even the biggest producers more than a hollow high.

We’re on the way. Canopy Growth Corp. (NYSE:CGC) bringing in top management with experience elsewhere was a step in the right direction.

ACB is looking for a new CEO now. I hope the company find someone who is serious about taking the company to the next level.

Meanwhile, the cannabis field is wide open. The most interesting names will make it into my IPO Edge portfolio and we’ll reap the rewards of their innovation over time.

Upcoming Appearances:

I am so excited to be a speaker at the 1st annual online Women Teach Trading and Investing Conference where many of the world’s top financial educators will showcase their best trading and investing strategies; including short and long term focus that will help you gain the confidence you need to take control of your financial future and earn a consistently profitable return from the global markets.

Join us at NO COST to YOU and learn from these Top Pro Women Traders that trade and invest successfully for a living.

I will be presenting on Monday, March 2 at 1 pm eastern and the conference runs all week.

Click here now to join us for a full week of trading education!

Join me at the TradersExpo in New York on Monday, March 9, 8-8:45 a.m. EST, for my special presentation, Faster, Stronger, Richer: The Two-Day Trader. Register for free at and use my priority code of 049072. The event will take place at the New York Marriott at the Brooklyn Bridge. I hope to see you there!

share on:

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

share on:


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

  • Forecasts & Strategies
  • Home Run Trader
  • Fast Money Alert
  • Five Star Trader
  • TNT Trader

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

  • Cash Machine
  • Premium Income PRO (exclusively for subscribers of Cash Machine)
  • Quick Income Trader
  • Breakout Options Alert
  • Hi-Tech Trader

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

  • Successful Investing
  • High Velocity Options
  • Intelligence Report
  • Bullseye Stock Trader
  • Eagle Eye Opener

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

  • Retirement Watch
  • Retirement Watch Spotlight Series
  • Lifetime Retirement Protection Program

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

  • Investment House Daily
  • Stock of the Week
  • Technical Traders Alert
  • Rapid Profits Stock Trader

Used by financial advisors and individual investors all over the world, 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.

  • Dividend Investor