Marijuana Investing

Cannabis Corner: After the Green Rush

Speaking of noise, the cannabis group is down this week after an extended rally. Conditions here resemble the overall market, with no news and steep short-term declines.

Aurora Cannabis Inc. (NASDAQ:ACB) and Canopy Growth Corp (NASDAQ:CGC) have retraced 11% this week. Tilray Inc. (NASDAQ:TLRY) is down 14%.

Is it the end of the world for these stocks and for the cannabis group as a whole? Get real. This is only a transient lull in what remains a serious bull run.

Admittedly, ACB has given up a lot of its gains and CGC is actually down so far this year now. But TLRY has doubled, as have smaller names like CannTrust Holding (OTC:CNTTQ) and OrganiGram Holdings Inc. (NASDAQ:OGI).

My proprietary index is still up 38% year to date (YTD), roughly triple what the S&P 500 has been able to deliver… and, tellingly, roughly where it was a few weeks ago.

Two steps up, one step down. That’s how the market moves. It is what separates real-world investment performance from a truly random walk.

If you were in these stocks at the end of 2020, you’re still cheering. And if you missed that rally, this correction is a chance to get a good seat for the next move to the upside.

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).