Cannabis Corner: Marathon Time for ‘Green’ Shoots

Hilary Kramer

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

Wall Street’s failure of nerve this week played out across all speculative themes, especially Big Cannabis.

My proprietary basket of stocks like Aurora Cannabis Inc. (NYSE:ACB), Canopy Growth Corp. (NYSE:CGC) and Tilray Inc. (NASDAQ:TLRY) dropped another 10% and is now up a mere 22% year to date (YTD).

If you bought the top, it has been a harrowing ride. But for those who had the conviction to buy these stocks back in December and hold on, you’re still beating the market by about 7 percentage points.

That’s not so bad, is it? Never forget that these stocks are a marathon and not so much a sprint. Weak players will drop out of the industry and surrender their market share to stronger rivals.

Demand for cannabis hasn’t gone away in the pandemic or afterward. That’s a good thing.

Talk about a federal repeal of consumption and sales restrictions will only accelerate the success path here. And these companies were always going to take years to achieve sustainable profitability anyway.

We won’t know who wins the marathon for miles to come. That’s why I insist on diversification. You want to be sure you end up holding the winners in your hand when the last losers fold.

Naturally, that means owning the losers as well. But their pain isn’t going to be as intense as the delight the winners will provide when the race is over.

Exclusive  Two Life Hacks to Make You Healthy, Wealthy and Wise 

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

The three best small-cap stocks to buy now consist of a gaming accessories brand, a manufacturer of semiconductor cleaning equipment and a smart vehicle tracking and analytics software-as-a-service (SAAS) platform. Small-cap companies are corporations with market capitalizations (market cap) between $300 million and $2 billion. Companies at this size occupy a unique position in the investor space since they possess enough of an established track record to no longer be considered speculative i

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

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

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

  • Successful Investing
  • Intelligence Report
  • Bullseye Stock Trader
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

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

  • Investment House Daily
  • Technical Traders Alert
  • Success Trading Group
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.

  • Dividend Investor
LEARN MORE HERE