U.S. Investing

Cannabis Corner: A Classic Green Gold Rush

You’ll notice a lot of people stop talking about cannabis stocks when the bulls are in control. Tragedies are easier stories to tell than comedies.

And right now, the cannabis bulls are clearly more interested in laughter than tears. My proprietary industry basket is up another 2% this week while the broad market drags.

Once again, the giants are leading the way and smaller, more obscure companies follow in their footsteps. Aurora Cannabis Inc. (NASDAQ:ACB) is up 7%. Canopy Growth Corp (NASDAQ:CGC) and Tilray Inc. (NASDAQ:TLRY) are up 5%.

What’s exciting is the way their charts have shaped up. This isn’t just an oversold bounce or the shorts covering their positions.

This is a real bull run that can sustain itself for an extended period. Good news spreads. Traders see what their rivals are making on these stocks and crowd in for a taste.

Right now, the key stocks are not even remotely overbought. They’re hot, but not too hot.

Let’s enjoy it while it lasts. And if you’ve been looking for an entry on these stocks, there’s now a note of urgency. If you blink, you might miss your chance to build a position at this level.

After all, my cannabis index is already up 51% so far this year. You’ve already missed out on these stocks at January prices. Late to the party is better than never arriving at all, right?

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).