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 | | | Top 10 Pot Stocks Ranked by Adjusted Operating Income | | Matthew Carr | Chief Trends Strategist | The Oxford Club | | | The Perfect Income Investment?
Imagine a stock that pays you 100% income on your money every year... and continues to do so for the rest of your life.
$1,000 in savings would pay you $1,000. $10,000 would pay you an extra $10,000. $100,000 would pay you $100,000. And again, that's every year.
We never thought an investment like that would be possible... Until we saw this. |
| | | The weed patch has become overrun with thorns.
After a devastating six-month bear market, the marijuana indexes are deep in the red for the year.
And the "Negative Nellies" have had plenty of headlines to pull from.
But there is one group of cannabis companies showing strength.
That's why this week we're looking at the top 10 cannabis companies with the highest adjusted operating incomes. | | | Folks Could Make a Retirement Fortune on This Obscure $5 Play
If you're searching for a virtual no-brainer in today's topsy-turvy stock market, we've discovered a little-known $5 stock that could take off like a rocket in the months ahead. It involves a frontier technology that Forbes calls "the holy grail" and The Washington Post dubs "the mother of invention." For details, click here. | | |
| Roadblocks at Every Turn
Let's not kid ourselves... it's been a frustrating six months for pot stock investors.
First, Canadian and U.S. licensed producers suffered large losses as they built out their operations.
Then there was CannTrust Holdings' (NYSE: CTST) illegal grow room scandal. Followed by the abrupt firing of Canopy Growth Corp. (NYSE: CGC) CEO Bruce Linton - an industry pioneer.
In the U.S., we've suffered through the painfully slow slog of Hart-Scott-Rodino Act approvals. This act was put in place so that mergers and acquisitions cannot be completed until the Federal Trade Commission and Department of Justice approve the transaction and determine it will not hurt U.S. commerce under the antitrust laws.
This means that billions of dollars in mergers and acquisitions of American multistate operators (MSOs) are waiting to be approved.
Now the vaping crisis is gaining steam and spreading to nearly every state. This is weighing on shares, even though the illicit market is to blame for the deaths.
Vape pens are one of the highest-margin products for marijuana companies. And we've already seen a dip in vape cartridge sales.
Cannabis stocks are facing so much downward pressure that not even the historic passage of the Secure and Fair Enforcement Banking Act by the House of Representatives is providing relief.
But - as I mentioned earlier - one group of cannabis companies is still kicking.
Let's take a look...
Top 10 Pot Stocks Way out in front is the Florida-centric MSO Trulieve Cannabis (OTC: TCNNF). The company continues to expand, with 33 dispensaries in the Sunshine State. And its adjusted operating income is nearly $21 million.
A distant second is the largest greenhouse operator in North America, Village Farms International (Nasdaq: VFF).
I said earlier this year that pot stock real estate has a ways to go. Not only is Village Farms on this list, but so are cannabis real estate investment trust Innovative Industrial Properties (NYSE: IIPR) and hydroponics retailer GrowGeneration Corp. (OTC: GRWG).
We also see CBD producers Charlotte's Web Holdings (OTC: CWBHF) and CV Sciences (OTC: CVSI).
But here's the most important thing...
Year to date, seven of these 10 companies have outperformed the industry benchmark, the Horizons Marijuana Life Sciences Index ETF (OTC: HMLSF)... The best performers so far are MediPharm Labs (OTC: MEDIF), Innovative Industrial Properties and GrowGeneration. These three are up more than 95% each so far in 2019, despite significant pullbacks from their year-to-date highs.
They've weathered the storm and are still in the green.
The three underperformers are OrganiGram Holdings (Nasdaq: OGI), CV Sciences and MariMed (OTC: MRMD).
It's worth noting that MediPharm and OrganiGram were the only two Canadian companies in the top 10 for adjusted operating income. This shows that American CBD makers and MSOs have strong markets to tap into - and likely some very serious upside.
Hang In There
Over the near term, it's been tough sledding for cannabis shares. But the long-term outlook is extremely bullish.
There may not be many highfliers among pot stocks at the moment. However, I think we'll look back at this moment as a great moneymaking opportunity.
In the meantime, investors looking for the safest bets need to start focusing on profits and operating income instead of revenue. Those are the two metrics throwing investors life preservers this year.
Here's to high returns,
Matthew | | | | |  | | | | | |  |  | | | | Matthew Carr | September 30, 2019 This historic vote takes investors one step closer to the end of cannabis prohibition in the United States. Read More | | | | |  | | | | Matthew Carr | September 26, 2019 As both a medical professional and one of the nation's leading cannabis specialists, Dr. Jordan Tishler provides a unique perspective on today's vaping health crisis. Read More | | | | |  | | | | Matthew Carr | September 25, 2019 No trend has captured the imagination of businesses, consumers and investors alike more than 5G. Read More | | | | | | | | |
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The Oxford Club is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that although our track record is highly rated by an independent analysis and has been legally reviewed, investment markets have inherent risks and there can be no guarantee of future profits. The stated returns may also include option trades. 
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