BY RUTH HILL R.N.
You know when cannabis is safe for investment when “Varney and Company” on “Fox Business” puts up a screen with nine stocks. Varney interviewed the CEO of Canndescent Inc. on January 23, 2019, who reported they raised $35 million of the $100 million goal without going to the public markets. Canndescent produces cannabis flowers and is out of Santa Barbara CA.
Varney displayed: CANNTRUST Holdings (CNTTF) down minus 2.47% to 6.68. Dutchman Holdings (TGODF) up 3.07% to $2.28. TERRA TECH CORP (TRTC) selling at $0.78. General Cannabis Corp (CANN) up at $2.31. TILRAY (TLRY) was down 1.37% at $71.81/share. Aurora Cannabis (ACB) up at $0.24. Canopy Growth (CGC) selling up at $43.74. Cronos Group (CRON) down -3.53% selling at $14.54 and lastly Hydropothecary Corporation (HYYDF) up at $5.52.
As of Friday January 25th, all my positions were up. These include CRONOS GROUP selling at $16.02, IANTHUS Capital Holdings (ITHUF), and Aurora Cannabis (ACB) at $16.72. My penny stock from the Israeli OWC Pharmaceuticals Research Corporation (OWCP) was holding steady at $.108.
The American Cannabis Operator Index, launched in 10/31/2018, included 18 companies as of 12/31/18. One was removed and two were added. United Cannabis Corp (CNAB), headquartered in Denver, CO since 2007 was removed. It engages in the research and development of cannabis in medicine. Its portfolio includes Advanced Cannabinoid Therapy Now (ACT) program and Prana Bio Nutrient Medicinals.
GGBXF (Green Growth Brands) and TGIFF (1933 Industries Inc) were added.The North American Cannabis market is expected to grow to $47Billion by 2027 and $80Billion by 2030.
Nigam Arora https://thearorareport.com/ utilizes the ZYX Change Method to navigate through the up and downs of the current market. The premise behind the ZYX Change Method is that the most money is made with the lowest risk while successfully predicting change before the crowd. Go to https://thearorareport.com/chart-analysis-of-marijuana-stock-aphria-apha to see a graft explaining this method. Investors who were previously criticizing Nigam Arora are beginning to understand that it takes knowledge, skill and the proper mindset to make money in marijuana stocks.
Arora believes the cannabis industry is too volatile to buy and hold until retirement. The changing landscape of takeovers and consolidation make for a confusing mess. Tobacco and Alcohol industries are also getting into cannabis infused products. As each state and nation legalize the plants use a plethora of support industries are expanding exponentially. There is a need for testing, equipment, software for inventory, technology development for trimming, temperature monitoring, lighting, and packaging. A cultivator relayed to me the backlog on medicine droppers that are gauged by fractions of millimeters.
Bob Hoban, from the Hoban Law Group, claims we do not have an industrial hemp industry because in the 90’s the cannabis/marijuana industry stole the business away from hemp fiber by developing genetics to cultivate cannabinoids like CBD and THC. The only difference between hemp and cannabis is the law. The hemp industry needs to catchup by developing the genetics for fiber and the other hemp based products. The new Farm Bill signed by President Trump made hemp legal to cultivate and distribute as long as the state develops regulations. Framers are now able to invest in large scale hemp for fiber growth and cannabis. Colorado is the leading hemp cultivator in the country.
Investing in cannabis is not for the faint of heart. Since buying and selling is suggested it may be best to choose a brokerage that allows dealing in US/Canadian cannabis stocks. Fidelity does. Most of the stocks are for recreational cannabis i.e. cannabis infused beer. Very few publicly traded companies deal in medicinal products. When this expansion occurs the boom in the cannabis industry will further explode. GW Pharmaceutics (GWPH), called by some the “Amazon of Genetics,” is a British company that has two cannabis medicinal products. Epidiolex which has FDA approval for the treatment of seizures in children and Sativex which is approved in over 20 countries for relief of Multiple Sclerosis. (not the U.S.)
Is your financial advisor ready to add cannabis stocks to your portfolio? Some resources for learning are:
https://www.newcannabisventures.com/
https://www.cannabisbusinesstimes.com/
https://www.green-flower.com/episodes/411/investing-in-hemp
Ruth Hill is a cannabis consultant with https://www.holisticcaring.com/ and can be reached at hilruth@gmail.com
