Tag: How to invest in Marijuana

It's Still Not Time To Buy A Marijuana ETF

Posted on by Matt Thalman

The month of October was terrible for the marijuana Exchange Traded Fund MG Alternative Harvest ETF (MJ). After some months in which we witnessed the share price of the marijuana ETF climb higher, we saw it drop like a rock following the October 17 date for the legalization of marijuana in Canada. For October, MJ was down just slightly more than 27%.

MJ rose and fell due to some big winners followed by big losers in the marijuana industry. But the problem is, the moves we have seen by these stocks have for the most part been based solely on speculation and rumors. We have not received an earnings report indicating profits from Canada were going through the roof; we receive any real meaningful information from the companies themselves that would have indicated now was the time to buy because the stock prices were just going to run higher. It was all just speculation and hype that was causing stock prices to move higher. I recently warned investors that now was not the time to jump on the MJ train, back when the ETF was at loftier levels, but now that is has fallen, you should remain on the sidelines and see how things play out in the industry.

The first reason of why is because of the recent decline the industry has gone through. The majority of the drop has been due to nothing more than profit-taking after the boom, ‘hype cycle’ played out leading up to the October 17 legalization of marijuana in Canada. Common sense would say the marijuana stocks would climb higher after the law went into effect. But all too often, the opposite happens because the ‘hype’ over the recent change dies off after the actual event takes place, and no new information comes available to keep the ‘hype train’ rolling. Savvy investors bought shares of the marijuana stocks ahead of the legalization date, road those stocks higher due to the “hype” and then sold them after the October 17th date when the catalyst for the move higher played out.

Which leads us to reason two of why you should stay on the sidelines. Continue reading "It's Still Not Time To Buy A 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?" →

Promising Cannabis Biotech Jumps 23%

Posted on by The INO.com Team

Analysis originally distributed on July 11, 2018 By: Michael Vodicka of Cannabis Stock Trades

June 26 was a groundbreaking day for the US cannabis industry.

That’s the day the FDA, the US agency responsible for approving new drug candidates, approved its first-ever cannabis drug.

The first-ever medical treatment derived from a marijuana plant will hit the U.S. market in a few months after regulators on Monday gave the epilepsy treatment the green light.

The Food and Drug Administration approved GW Pharmaceuticals Plc’s Epidiolex to treat two rare forms of childhood epilepsy, according to a statement from the agency. The liquid is made from a compound in the marijuana plant called cannabidiol, a different chemical from tetrahydrocannabinol, or THC, which gets users high.

First Marijuana-Based Medicine Is Approved for Sale in U.S.

This ruling is important for two reasons. Continue reading "Promising Cannabis Biotech Jumps 23%" →

Molson Coors Eyeing Canadian Cannabis Partner

Posted on by The INO.com Team

Analysis originally distributed on June 28, 2018 By: Michael Vodicka of Cannabis Stock Trades

October 30, 2017 was one of the best days of the year for the young cannabis industry.

That’s the date when Constellation Brands (STZ), the second-largest US beer maker, announced a 10% stake in Canopy Growth Corp. (CGC/WEED), the largest Canadian cannabis company.

It was a groundbreaking moment for the cannabis industry because it was the first time that a big alcohol company had invested directly in a cannabis company.

Not only did it give the young cannabis industry tons of credibility, it also sets the stage for big alcohol to invest billions into the cannabis industry in the next few years.

In the short run, Canopy shares jumped more than 23% in one day on the news.

In the long run, it triggered a 10-week rally in Canopy – and the entire cannabis sector – that sent shares deep into a new all-time high. Take a look. Continue reading "Molson Coors Eyeing Canadian Cannabis Partner" →

A New Entry Into Germany’s Cannabis Industry

Posted on by The INO.com Team

Analysis originally distributed on June 21, 2018 By: Michael Vodicka of Cannabis Stock Trades

Germany has quickly emerged as one of the fastest-growing medical cannabis markets in the world.

According to a study on the German health insurance market, 500 German patients requested medical cannabis in January of 2017.

In December of the same year, the number of patients requesting reimbursements for cannabis prescriptions skyrocketed to 13,000.

What was the biggest factor that drove the huge spike?

German insurance companies started covering medical cannabis subscriptions in 2017 – and the number of patients surged.

Looking forward – this bullish trend is expected to accelerate.

Tens of thousands of new patients are expected to enroll in Germany’s medical cannabis program in 2018.

Longer term – I expect the success of Germany’s medical cannabis market to usher in recreational legalization. Continue reading "A New Entry Into Germany’s Cannabis Industry" →