U.S. Investing

New Green Leadership

The more I crunch the numbers on the ongoing rotation of money through the cannabis industry, the better the middle-term view looks. We might finally be seeing the green light at the end of a long tunnel.

Admittedly, it has been a miserable year. Across the stocks I track, close to $900 million in investor capital has evaporated in the last eight months.

But the group as a whole is now up 6% so far this year as money flows out of the established giants like Canopy Growth Corp. (NYSE:CGC) and Aurora Cannabis Inc. (NYSE:ACB). In fact, ACB has now lost its No. 2 cannabis stock status.

Aphria Corp (NASDAQ:APHA) is now a larger company by market capitalization, as befits its more defensive medicinal orientation. And once-tiny retail distributor Green Thumb Industries Inc. (OTCMKTS:GTBIF) is now bigger than both APHA and ACB put together.

If GTBIF is the future, I think the industry as a whole has turned the corner and will reward investors again. I’m looking forward to that.

We clearly needed a breath of fresh air here. As it is, GTBIF has created almost as much wealth so far this year as leading cultivator CGC has hemorrhaged over the same period.

And if GrowGeneration Corp. (NASDAQ:GRWG) can keep expanding, we’ll have a new giant to contend with one of these days. Reading between the lines, the initial “green gold rush” is over. It is time for a new generation of companies to step up.

Hilary Kramer

Hilary Kramer is an investment analyst and portfolio manager with 30 years of experience on Wall Street. The Financial Times describes Ms. Kramer as “A one-woman financial investment powerhouse” and The Economist distinguishes her as “one of the best-known investors in America”. Ms. Kramer is often quoted in publications such as the Wall Street Journal, New York Post, Bloomberg, and Reuters. She is a frequent guest commentator on CNBC, CBS, Fox News and Bloomberg, providing investment insight and economic analysis. Ms. Kramer was an analyst and investment banker at Morgan Stanley and Lehman Brothers. Ms. Kramer founded and ran a long-short hedge fund and has been chief investment officer overseeing debt and equity portfolios. Since 2010, Ms. Kramer’s financial publications have provided stock analysis and investment advice to her subscribers. Her products include GameChangers, Value Authority, High Octane Trader, Triple-Digit Trader, 2-Day Trader, IPO Edge and Inner Circle. Ms. Kramer, a Certified Fraud Examiner, has also testified as an expert in investment suitability, risk management, compliance, executive compensation, and corporate governance. Ms. Kramer received her MBA from the Wharton School at the University of Pennsylvania and her BA with honors from Wellesley College. Ms. Kramer has provided testimony regarding investment policy to the U.S. Senate and is a frequent speaker on the markets, portfolio management and securities fraud and compliance. Ms. Kramer is also the author of “Ahead of the Curve” (Simon & Schuster 2007) and “The Little Book of Big Profits from Small Stocks” (Wiley 2012).