U.S. Investing

Cannabis Corner: From Bounce to Bonanza

Some people say it took a fairly low-profile analyst realizing that Aurora Cannabis Inc. (NYSE:ACB) is a “buy” to get the cannabis stocks moving in the right direction again.

I don’t buy it. ACB was due for a bounce purely on technical reasons. We talked about that last week.

So, even if an analyst talks about dispensaries across Canada reopening, my long-term view hasn’t budged. I’m still bullish.

It is only a matter of diversification. Wall Street essentially left ACB for dead a month ago. Now, suddenly, it’s a star.

But in the background, the entire group of cannabis stocks I track is up a healthy 11% this week and has given investors close to a 50% return so far this year. That’s huge.

All you need is long-term conviction and the nerve to hang on when volatility turns against you. The right perspective helps as well.

One of the cannabis stocks in my IPO Edge was hurting earlier this season and it’s down almost 5% this morning. But it’s still up 47% across the last two weeks.

That’s a big enough uptrend that even a 5% lurch to the downside is barely a speed bump. Want to know the ticker symbol? You’ll just have to 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).