Aurora Cannabis (ACB) just jumped 250% in two days after reporting third-quarter earnings that crushed expectations.
Not many people saw that huge jump coming. If you missed it – don’t worry.
I see a high probability that the same pattern will repeat itself on Friday morning when the largest cannabis company in the world reports highly anticipated fourth-quarter earnings.
The stock market is full of seasonal trends and one of the most important of the year has just begun.
I’m talking about, “sell in May and go away,” a financial adage that prompts investors to divest their holdings in May and return to the markets in the fall.
I made a prediction for what I thought would be the strongest stock for 2017.
Since then, that little-known cannabis company quickly grew into Canopy Growth Corp. (NYSE:CGC, TSX:WEED), the largest cannabis company in the world with a market value of more than $12 billion.
There has been a flurry of US and Canadian cannabis companies going public this year.
Many traders, including our Cannabis Stock Trades members, are closely following these up-and-coming companies and optimizing their portfolios for opportunities with massive growth.
Remember, not all IPOs are created equal. Just because a company can get listed on a major exchange doesn’t mean its share price will thrive.
I’m going to share five of my favorite recent Initial Public Offerings (IPOs) in the cannabis sector.
I believe that these are strong companies with great long-term potential. My Cannabis Stock Trade members receive detailed research reports on these stocks and access to a model cannabis portfolio that has gained 100% since its inception in January of 2017.
Dixie Brands Inc. is an early leader in the high-growth cannabis edibles market, with one of the best edible product portfolios in the business. Despite its great potential, Dixie looks undervalued compared to many other companies in the cannabis sector. Long-term, I see big things happening for Dixie with the cannabis edibles market expected to see big sales growth in the next few years.
Cresco is a multi-state, vertically integrated cannabis company that is a direct play on Illinois’s plan to legalize recreational cannabis in 2019. Cresco owns an impressive portfolio of cannabis cultivation facilities, cannabis dispensaries, and branded cannabis products. Shares have been surging since going public in early December, hitting a series of new all-time highs. Despite the quick start, I still see tons of potential. If Illinois officially legalizes recreational cannabis, Cresco is in position to ride the wave.
Harvest Health & Recreation, Inc. (CSE:HARV, OTC:HTHHF)
Harvest Health & Recreation Inc. is another multi-state, vertically integrated cannabis company. Harvest has a large and early presence in some of the largest and fastest growing cannabis markets in the US, including California, Arizona, and Massachusetts. Harvest Health & Rec. has more than 350 employees and an executive team comprised of finance, compliance, and real estate leaders.
MJardin provides comprehensive management solutions for the cannabis sector. With 36 cultivation, processing, and retail facilities under management, MJardin offers turnkey cultivation, processing, and retail solutions including licensure support, facility design, equipment leasing, personnel management, and more.
Shares have been a bit weak since hitting the Canadian Securities Exchange last fall, however, this is one to keep your eye on. This company has a unique business model and federal policy changes could set this stock in motion.
Acreage Holdings (CSE:ACRG, OTC:ACRGF)
Headquarters: New York, NY
IPO Date: 11/15/18
Market Cap: 2.02B
Avg. Daily Volume: 121,951
Acreage is also another multi-state, vertically integrated cannabis company. It owns one of the largest portfolios of cannabis cultivation centers and cannabis dispensaries in the industry. Acreage has some of the best political connections in the cannabis industry – former US Speaker of the House, John Boehner, and former Canadian Prime Minister, Stephen Harper, both serve on the board.
These five stocks rank among the most compelling new cannabis stock IPOs in the last six months. Some shares are flourishing while others have yet to catch on.
Either way – to succeed in the cannabis sector – timing is everything.
I tell members of Cannabis Stock Trades exactly when I’m entering, adding to, or selling off a stock in our model portfolio. It takes research and insight to know when a stock is mature and ready to make a substantial move.
Again, IPOs are exciting (especially those in the cannabis industry) – but hitting the street is just the beginning, it’s what you do with them after that matters!
Much success,
Mike Vodicka
Editor, Cannabis Stock Trades
About the Author & Cannabis Stock Trades
Michael Vodicka is a globally syndicated equity analyst with more than 20 years of experience in trading and investing. His research has been featured in some of the industry’s most respected publications.
He has been investing and leading investors in the cannabis sector since 2013.
In this quick video, I’m going to give an update on the cannabis sector as a whole. I am also going to share the name of two stocks that I think may break out.
CST members, be sure to log into your member-exclusive CST site for a full analysis and a plan on how we’re going to position ourselves to ride these potential breakouts.
This news out of Thailand is huge for two reasons.
#1 it expands the size of the international cannabis market. Thailand is one of the largest countries in Asia. Its population of 70 million citizens is the 10th largest out of 50 in Asia according to Wikipedia. Thailand’s GDP of $450 million in 2017 made it the 8th largest economy in the region and the 26th largest in the world.
#2 as you read above Asia is home to some of the strictest drug laws in the world. This demonstrates that as attitudes about cannabis change all around the world, they are also changing in Asia. The Asian population is massive – its the most populous continent in the world. Progress on cannabis opens up huge new markets.
Members, please log in to CST to read how this news is going to impact our model portfolio and why this is massive for the global cannabis industry.
