Which Cannabis Stocks to Buy? Stick With U.S. Multi-State Operators
The U.S. is the market to be in, and thereâs one easy way to buy all the most promising stocks. Plus, one Canadian and one international pick.
Author:
Apr 26, 2021 8:00 AM EDT
We’re overthinking cannabis investments. The United States is the market investors should hang their hat on. Yes, I believe there is a Canadian name and an international name to consider, but the multi-state operators (MSOs) in the U.S. have the biggest market and the biggest opportunity.
Already, numbers here are crushing it in terms of both growth and revenue. What’s more amazing is cannabis isn’t even federally legal and dozens of states still don’t allow sales or only allow medical sales. There is plenty of upside still to be had.
Amplify ETFs Makes Key Announcement on Unofficial Marijuana Holiday April 20, 2021
On what has become a historic day for marijuana smokers, April 20, or 4/20, a leading ETF company is making a major announcement.
Amplify Seymour Cannabis ETF (NYSE: CNBS) now has the ability to access Multi-State Operators (MSOs) via swaps. The ETF recently finished the necessary legal and operational work required to add portfolio exposure to this group of companies.
Swaps are a type of derivative contract where where two parties exchange the cash flows or liabilities from two disparate financial instruments. Swaps can occur in a variety of forms and typically principal does not transfer between the parties.
None of These Stocks Are Short-Term Trades for Me No one likes seeing a name they hold decline in value.
Apr 15, 2021 | 01:39 PM EDT
Big and boring remains the game. The small-cap momentum crowd is completely silent. There s a buyer s strike, a void of demand, in the late darlings of last year. SPAC has become spit. Names like Skillz (SKLZ) , one I happen to like on its long-term prospects, has an untouchable chart. I couldn t sugarcoat it enough to swallow it down even if I owned a Domino factory.
There will be some bargains that come from this as all the attention has turned to large-caps. There are hundreds of small-caps that have entered bear market territory with no signs of stopping. Is the economy reopening removing too many speculative traders that found their way into the markets in 2020? It s a theory I ve seen mentioned, one I loosely discussed in the past as well in specific securities, but I didn t envision it pushing quite this far or broad.
REUTERS/Amir Cohen
Three hedge funds that invest in the cannabis industry shared their financials with Insider.
After getting smacked in 2019, the funds all posted banner years in 2020.
JW Asset Management led the pack, gaining a whopping 146% in 2020.
In the middle of 2019, Jason Wild was facing what he says felt like the absolute destruction of the fledgling cannabis industry.
His firm, JW Asset Management, manages over $2.2 billion across three separate funds. He estimates JW s total cannabis holdings are well over $1.5 billion, meaning that he and his investors had a lot of skin in the game when the industry started to slide.
Profit-Taking Is Kicking In: Here Are Some Names on My Shopping List Study those charts and be ready to act as things develop.
Feb 05, 2021 | 11:19 AM EST
Opening strength Friday morning has been met with steady selling in many of the small-cap stocks that have been leading recently. Breadth is still excellent at better than 2 to 1 positive, and over 750 stocks hit new 12-month highs, but it looks like traders are in the mood to lock in some gains as they finish up an excellent week for stock-picking.
The stocks that led Thursday are lagging badly Friday, but it doesn t look like there is any rush for the exits. It is just some profit-taking and cutting of exposure. I expect many of these names to set up quite well again after a bit of rest.