U.S. Investing

Cannabis Corner: Stay Open to the Small Names

After weeks of reversals, my proprietary cannabis portfolio is back in positive territory. Don’t look to the big growers for the reason.

Aurora Cannabis Inc. (NYSE:ACB), Canopy Growth Corp (NYSE:CGC) and Tilray Inc. (NASDAQ:TLRY) are still struggling to get back to work. It takes time to turn a billion-dollar stock around.

But here and there, I’m seeing tiny names start soaring as alert investors realize that the wind has changed. These stocks are back in favor. There’s money to be made here.

If my portfolio was market-weighted, it wouldn’t make a difference what tiny stocks do. Their glory would simply get lost in the giants’ noise.

But on an equal-weighted basis, big and small companies share the spotlight. GrowGeneration Corp. (NASDAQ:GRWG) and obscure Pharmacielo Ltd. (OTC:PCLOF) can each contribute to a positive outcome.

You always want exposure to the next big thing… and you want to get in while it’s still a small company. That’s the whole point of investing in largely speculative fields like cannabis in the first place, 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).