Investing with Hilary Kramer

Cannabis Corner: Aphria was my Favorite

It has been a cold week for a lot of formerly hot stocks and the cannabis group hasn’t been immune to the weather. Nonetheless, one stock, in particular, keeps rallying.

Aphria Inc. (NASDAQ:APHA) gained 18% this week, leaping ahead of just about all of its rivals on Wall Street. It’s not hard to love this stock.

This is going to be the biggest cultivator in the industry once it completes its merger with Tilray Corp. (NASDAQ:TLRY). And even at this scale, the business actually makes money on an operating basis.

Additional capacity and a bigger market footprint will only create additional efficiencies and boost profitability. That’s what the TLRY merger will do.

But APHA doesn’t even need the help. Sales are tracking 33% above last year’s level.

Archrival Canopy Growth Corp. (NYSE:CGC) isn’t growing that fast. Half the time, Aurora Cannabis Inc. (NYSE:ACB) isn’t even growing.

If you’re following cannabis stocks for a dynamic high, those stocks just aren’t going in the right direction. APHA is. And I think the numbers get better from here.

You won’t find APHA in any of my subscriber portfolios. As much as it pains me to say it, a tiny company in my IPO Edge portfolio has taken its spot in my heart.

That little stock is doing even better than APHA, beating the giant’s performance by 5 percentage points this week alone. What is it? Stick around, and I might tell you someday.

And, of course, you can always click the link and subscribe.

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).