Stock Market News

Cannabis Corner: Bounce or Boom?

People are talking about a recession forcing more states to accelerate their cannabis legalization efforts. I don’t really see it happening yet, but it’s nice to see the stocks rebounding now.

My guess is that these stocks were simply oversold, and the short sellers are covering their positions. Whether that’s an illusion or a sign of real recovery remains to be seen.

We’ll play the recovery when it comes. As for the illusion, we can afford to remain patient before making any big move in this space.

After all, a stock like Tilray Inc. (NASDAQ:TLRY) can surge 140% from the depths like it did this week. But even with that bounce, it’s still down a harrowing 87% over the past 12 months.

When shareholders have accumulated that much pain, even the routine bounces can look astounding. We can say that about the market as a whole these days. Keep your powder dry and your eyes open.

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Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).