A Little Rain on the Parade

Another week of volatility on Wall Street has been savage for the cannabis stocks.

Look at the numbers. Canopy Growth Corp. (NASDAQ:CGC) is down another 5%. Tilray Inc. (NASDAQ:TLRY) dropped another 11%. Aphria Inc. (NASDAQ:APHA) lost another 12%.

The dozen cannabis stocks I track in my proprietary index are now down 29% in the past two weeks. We’re past correction territory now. This is formally a bear market on the “buzz” theme.

But get real. Even after that sickening lurch to the downside, my index is still up 58% year to date (YTD). That’s two months of rallying that not even two weeks of pain could erase.

It’s just a little rain on the parade. There’s no headline catalyst here and no reason to sell these stocks.

The only thing traders seem to be afraid of here is the notion that the market will take their recent gains away. They’re afraid of fear itself.

We’re holding onto the cannabis micro-caps in my IPO Edge portfolio. They’re up 109% in the aggregate with blue skies ahead.

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).