U.S. Investing

Is That You, Robinhood?

Cannabis stocks went on a big circular ride this week, ultimately ending up roughly where they started. I am not concerned, but I’m not especially thrilled either.

Tilray Inc. (NASDAQ:TLRY), for example, soared 150% early in the week, only to drop a harrowing 56% in the last two days.

Other Big Green stocks like Canopy Growth Corp. (NASDAQ:CGC) and Aurora Cannabis Inc. (NYSE:ACB) swung in roughly the same pattern, leaving investors with little or nothing to show for the overall experience.

What’s going on? I’m thinking the day traders who drove similar crazy moves on stocks like GameStop Corp. (NYSE:GME) hoped they could engineer something similar for the most depressed members of the cannabis group.

They don’t need to waste their time. These stocks aren’t heavily shorted. Robinhood and similar trading platforms probably won’t feel the same heat here.

The real fire is in the next wave of cannabis companies, selling the technology that helps retailers obey regulations and make money in the meantime. One of them is in my IPO Edge portfolio.

Until recently, it wasn’t even open to everyday investors. You’ll have to subscribe to see it.

P.S. My recent presentation on the 2-Day Wealth Calendar can now be seen on the Global Financial Wealth TV network. Click here now to watch it.

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).