U.S. Investing

The Long Trend Turns Up

This has been a seminal week for the cannabis stocks. What’s remarkable is how few Wall Street commentators are able to connect the right dots.

The group of 12 companies I track in this space surged another 22% this week. Several, including the transformed Tilray Corp. (NASDAQ:TLRY), gained up to twice that much ground.

Some have tried to attribute the rally to Martha Stewart’s new cannabidiol (CBD) dog chews. But anyone who really knows this space recognizes that while the news was a boost for hemp suppliers, the impact on mainstream cannabis markets is extremely limited.

Dogs get sick when they eat cannabis. They aren’t going to be wolfing down Martha’s infused treats any time soon.

And while Martha is working with Canopy Growth Corp. (NYSE:CGC) to supply the raw plant materials, CGC was actually one of the laggards this week. This is not a big story right now.

Neither is the merger of GW Pharmaceuticals (NASDAQ:GWPH) and Jazz Pharmaceuticals (NASDAQ:JAZZ) in order to consolidate cannabis drug development programs.

I love GWPH and will miss it as an independent stock, but this deal is more about age-old biotech business models than the cannabis revolution.

No, I think what’s happening to the cannabis stocks is simple hope. Most have recovered nicely from their shocking collapse in 2019. They’re ready for the future.

History will judge the results. We’re looking to cash at least two triple-digit-percentage cannabis wins in my IPO Edge portfolio soon. And there’s more to come.

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).