- (0:20) - Where To Invest With Pot Stocks
- (2:30) - 2017 Stock Pick Update: ACBFF, GWPH, SMG, IIPR
- (8:00) - Top Picks For 2018: ABBV, CRON, STZ, INSY, CARA
- (16:10) - Risk and Rewards of Buying Pot Stocks
- (19:40) - Episode Roundup: Podcast@Zacks.com
It is getting easier to buy stocks that do business in the emerging cannibis industry. Tracey and Dave explore all the options.
Welcome to Episode #123 of the Zacks Market Edge Podcast.
Every week, host and Zacks stock strategist, Tracey Ryniec, will be joined by guests to discuss the hottest investing topics in stocks, bonds and ETFs and how it impacts your life.
In this episode, Tracey is joined by David Bartosiak, the Editor of Zacks Surprise Trader, Momentum Trader and Blockchain Innovators newsletters, to discuss one of their favorite topics: marijuana stocks.
On Jan 17, 2017, Tracey and Dave first explored the marijuana investment options in the podcast titled “Can You Get Rich Off Marijuana Stocks?”
Back in early 2017, the investment pickings were slim.
Have things changed in 2018?
Maturing of the Pot Stock Industry
Demand remains high for “pot stocks.” For that reason, several marijuana ETFs have now launched and more businesses are looking for ways to get a foothold in the industry.
In addition to the stocks they talked about last year, Tracey and Dave also found several more investing options.
They focused on those that are traded on the US exchanges and have, or soon will have, Zacks Rank. That means some stocks that trade on the Pink Sheets, like Aurora Cannabis (ACBFF) for example, are not high on their list even though it has a $4.4 billion market cap.
5 Stocks that get you into the Marijuana Trade
1. The Scotts Miracle-Gro Company (SMG - Free Report) making potting soil specifically for growing marijuana. While it was a stock mentioned on the 2017 podcast, its performance hasn’t been that great. Shares have fallen 2.3% in that time.
2. GW Pharmaceuticals (GWPH - Free Report) is a British biopharmaceutical company that is developing cannabis medicines. It’s lead product is in development to treat rare and catastrophic forms of childhood on-set epilepsy. It’s expected to lose $8.95 per share in fiscal 2018 and another $6.12 in fiscal 2019. Shares are up just 1% since the January 2017 podcast.
3. Innovative Industrial Properties (IIPR - Free Report) is a REIT that manages free-standing properties for growing licensed medical-use cannabis. These facilities are operated by state licensed growers. It has buildings in New York, Maryland, Minnesota and just acquired a site in Arizona which has a long-term lease. Earnings are expected to be $0.19 in 2017 and $1.32 in 2018. It has paid out a distribution in 2017. Shares are up 44% since the Jan 17, 2017 podcast.
4. AbbVie (ABBV - Free Report) is a large cap US biopharmaceutical company which just happens to be one of the first with an FDA approved cannabis-based drug, Marinol, on the market. Marinol is approved for chemotherapy induced nausea and vomiting and anorexia. AbbVie is expected to grow earnings by 33% in 2018 yet trades with a forward P/E of just 15.8.
5. Cronos Group listed on the NASDAQ exchange on Feb 27, 2018. This Canadian based company cultivates medical marijuana companies and owns 100% of Peace Naturals, 100% of Original BC and 21.5% of Whistler Medical Marijuana Company. It doesn’t yet have a Zacks Rank. Stay tuned.
There are other biopharmaceuticals that are in the development stages of cannabis-based therapies and treatments. Additionally, some of the large food and beverage companies are looking for ways to invest in cannabis food and drink products.
What other stocks could be marijuana investments in 2018?
Listen to the podcast to find out.
Don’t Even Think About Buying Bitcoin Until You Read This
The most popular cryptocurrency skyrocketed last year, giving some investors the chance to bank 20X returns or even more. Those gains, however, came with serious volatility and risk. Bitcoin sank 25% or more 3 times in 2017.
Zacks’ has just released a new Special Report to help readers capitalize on the explosive profit potential of Bitcoin and the other cryptocurrencies with significantly less volatility than buying them directly.
See 4 crypto-related stocks now >>