Tag: Cannabis Investing

3 Reasons Why You Should Still Avoid MJ, The Marijuana ETF

Posted on by Matt Thalman

2018 was a tough year for long-term buy and hold marijuana investors. As a whole, the industry went on quite a wild roller-coaster ride. Marijuana stocks popped in December 2017 as anticipation for the ‘legalization’ of the drug occurred in the state of California on January 1st, 2018. We saw stock prices and the ETFMG Alternative Harvest ETF (MJ) jump as investors anticipated a ‘boom’ for the industry.

But, within a month or so of the legalization date, most of the marijuana-related stocks have fallen in price and MJ was trading below its December 2017 price. A few months went by, and most of the industries stocks just meandered along. Then the next big ‘legalization’ date grew near, October 17th, 2018, the day marijuana became legal in Canada.

The price of most of the well known and many of the lesser-known marijuana stocks, and MJ of course, once again began to ski-rocket. MJ, for example, went from $24 per share in August 2018, to as high as $45 per share, with its peak occurring just days before October 17.

Each time a new State or large country legalizes the drug, the companies in the industry experience an unfound increase in their valuation as investors buy shares at an insanely high rate. This type irrational buying leading up to a hyped up, essentially arbitrary date has put a lot of investors in a really bad place in 2018. MJ for one is down more than 24% in 2018, while other individual marijuana companies have seen their stock prices fall even further. Continue reading "3 Reasons Why You Should Still Avoid MJ, The Marijuana ETF" →

Marijuana ETF On Wild Ride in September, Will It Continue?

Posted on by Matt Thalman

As we close in on October 17th, the official day that Canada legalizes marijuana, potential investment opportunities in the industry continue to attract new money, and share prices have ballooned. But the real question is whether or not the boat has left you at the dock or if there is still time to get in on this party.

Anyone that follows the stock market has undoubtedly heard of the top few marijuana stocks by now. Companies like Tilray (TLRY), Canopy Growth (CGC), or Aurora Cannabis (ACBFF), just to name a few have been highly reported on over the last few weeks, increasing interest and moving their share prices. These companies have seen outside investments from alcohol companies, and interest in their business’s increase as both investors and other industries try to position themselves for what some believe will be the ‘next’ great investment frontier.

Tilray, which just went public in July, has seen its share price go from below $30 to as high as $250 in mid-September. That jump, in particular, sent the price of the only U.S. listed marijuana ETF, ETFMG Alternative Harvest ETF (MJ) to its highest level ever on September 20th at $43.01. After closing August at just $33.48, on September 20th MJ was up 28% for the month but ended up closing the month down just slightly from that level at $40.05, which by the way was still a 19.6% gain in September.

It should also be noted that MJ was a top ETF performer in August, rising 27.7%. In August MJ got a boost from the alcohol companies, Constellation Brands (STZ) announcing it was increasing its stock in Canopy. Molson Coors Brewing (TAP) reporting it had entered into a partnership with Hydropothecary Corp to create a cannabis-infused beverage, and Diageo (DEO) apparently being in talks with a few different Canadian based marijuana companies about either partnering or buying stakes in their businesses.

MJ’s performance in August continued in September, but are we going to see the same trend in October or even further out in 2019? Continue reading "Marijuana ETF On Wild Ride in September, Will It Continue?" →