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Wealthpress


U.S. Cannabis MSO vs. Canadian L.P. — Top 4 Weed Stocks

Posted: 29 Mar 2021 10:24 AM PDT

The stock market has clearly been favoring the Canadian licensed producers (LP) over the U.S. multi-state operators (MSO). This is evident by the massive stock price rise in Canadian names. In this interview, Faircourt Asset Management CEO and Ninepoint Alternative Health Fund Manager Charles Taerk makes a strong case as to why the U.S. players will actually have a significant economic moat and will provide shareholders a lot more value moving forward.

An economic moat is a business's ability to maintain competitive advantages over its competitors in order to protect its long-term profits and market share from competing firms.

Almost a year ago to the day, the world entered its first lockdown arising from the pandemic. One of the first results after this was the ruling by 29 states that cannabis is an essential service. This declaration reinvigorated the cannabis industry and wakened investors to the high demand for the green commodity. Such inelastic demand is similar to alcohol or tobacco. (Translation: no matter the change in price, people still want the marijuana)

As stimulus checks were distributed around America in April 2020, people cashed out and headed to their local weed shop – resulting in the largest one-day cannabis sales. As lockdowns ended around June, the demand kept continuing to grow month-over-month, state-over-state.

As elections rolled around, we not only received future promises of de-prohibition reform, but five states also legalized – perhaps the most significant being New Jersey. New Jersey is seen to be a domino state as the surrounding areas could also follow suit. We are already seeing it in Maryland and New York.

With these events, certain U.S. MSOs have extremely attractive valuations – especially when compares to other growth sectors like tech, which are trading at significantly higher valuations.

Even with the lack of regulatory action from the Biden administration, Taerk argues that rather than this being detrimental to MSO valuations, it actually supports the incumbent players as they continue to build a moat around their business. Canadian, international, alcohol and pharmaceutical companies will not be able to access the market allowing the top players in the MSO to continue developing their stellar businesses.

Just looking at the free cash flows comparatively between the U.S. MSOs and Canadian L.P.s, we see stark differences. The top five Canadian cannabis stocks have reported $0 profitability, whereas the top five U.S. names have already forecasted $1.5 billion for 2021.

As the Ninepoint Alternative Health Fund team clearly have their finger on the pulse of all things cannabis, it's not surprising their fund returned unitholders between 37 and 40% returns over 2020 – being able to maintain its net asset value (NAV) over the weak period of the year and accelerating through the balance of 2020.

"We try to skate where the puck is going" – Charles Taerk, Faircourt Asset Management CEO

Watch the full interview for a masterclass in cannabis investing and the weed stocks the fund sees as being top performers this year.

The post U.S. Cannabis MSO vs. Canadian L.P. — Top 4 Weed Stocks appeared first on Wealthpress.

2 Earnings Reports To Watch This Week

Posted: 29 Mar 2021 10:06 AM PDT

We have important earnings reports to watch this week in both the retail and semiconductor spaces. I'm talking about Micron and Lululemon… 

While these companies are very different from each other, they can both give traders and investors some much needed clues in terms of where these sectors are headed in the near term. 

And because the U.S. economy is on the verge of reopening and a third round of stimulus checks are being sent out, it's more important than ever to determine how these two corporate giants fare at this junction. 

So let's start with Lululemon Athletica Inc. (Nasdaq: LULU) since it's the first earnings report to watch this week

2 Important Earnings Reports To Watch This Week 

For those of you who don't know, LULU is an athletic apparel brand that makes clothes for yoga, running and just about any other sweaty activity you can think of. 

It's scheduled to report earnings Tuesday after the closing bell. Analysts expect a revenue of $1.66 billion and earnings per share of $2.48.  

But if you look at the stock's technicals, LULU is trading below its 50-day moving average. 

I strongly urge anyone to wait until it's trading above the 50-day line before jumping feet first into the stock. I say this because once the stock picks up momentum, the odds are strong that it'll take out September's previous high, roughly about $400 per share. 

So I'd keep an eye on the $325 level because that's where the 50-day moving average sits. I anticipate the stock will rally. And once it hits the $399 level, to back away and then start running even higher. 

But LULU isn’t the only earnings report to watch this week

I've been talking about Micron Technology Inc. (Nasdaq: MU) a lot lately, and it's expected to report earnings after Wednesday's close. So check out my short video below to learn more about these companies and why they're the earnings reports to watch this week 

And as always, don’t forget to subscribe to my YouTube channel if you haven't already so you can be notified as soon as I post my next video! 

 

P.S. What would you say if I told you there's a glitch in the market that forces Wall Street to buy up a stock…

Sending its price 200%… 300%… and even 1,000% higher in as little as 24 hours? 

I'm not talking about tech explosions, value investing or risky penny stocks. I'm talking about household names soaring triple and even quadruple digits. 

And knowing when this glitch happens could help you grab some of the fattest paydays… 

That's exactly why stock market expert and Forbes contributor Adam Sarhan is finally revealing how you can spot the next one! 

Click this link to get the details.

The post 2 Earnings Reports To Watch This Week appeared first on Wealthpress.

Last Chance To Invest in Emerald Health Pharmaceutical’s Private Financing

Posted: 29 Mar 2021 08:20 AM PDT

Emerald Health Pharmaceuticals is a science-based company that uses the unique convergence of science, biology, and cannabis molecules like Cannabidiol (CBD) and Cannabigerol (CBG) to create new molecules – which can elicit beneficial effects (that CBD doesn't) to potentially treat so-far incurable diseases.

This company is distinct from the public company we have interviewed before: Emerald Health Therapeutics Inc. (CVE:EMH) (OTCMKTS:EMHTF) (FRA:TBD) – the Canadian company involved in the CBD based technology of growing and extracting. Both of these companies are partially owned by Emerald Health Sciences (hence the name).

EHP is a private company based in the U.S. that creates unique compounds using CBD and CBG, which are scientifically and chemically manipulated to affect certain biologic pathways and receptors in the human body. The new molecules are validated to stop the progression, reverse and even cure a number of targeted, rare and incurable diseases.

The company has Stage II human clinical trials underway involving serious diseases like Multiple Sclerosis, Systemic Sclerosis, Parkinson's disease and Huntington's disease. EHP's two molecules, EHP-101 and EHP-102, have composition patents and have been granted designations.

"CBD has known health benefits, anti-inflammation benefits but won't change the course of progression of these rare diseases. Because [Emerald Health Pharmaceutical's] molecules have been changed specifically to affect pathways in the body that are specific for treating Multiple Sclerosis, Parkinson's, etc. This will stop the progression of the disease and can also reverse the disease." – Jim DeMesa MD, MBA – Emerald Health Pharmaceuticals CEO

The company currently has Regulation A financing underway which gives people the opportunity to invest in the private company. EHP has announced the final closing date for this offering of March 28 by midnight. To date, EHP has received investment commitments of approximately $56.0 million from over 8,000 investors.

Watch the full interview for an outline of the company, how Emerald's differentiated CBD/CBG molecules work, the diseases they are helping, and how to invest.

The post Last Chance To Invest in Emerald Health Pharmaceutical’s Private Financing appeared first on Wealthpress.

2 Pullback Stocks To Target This Week

Posted: 29 Mar 2021 06:32 AM PDT

Global stock markets are mixed this morning. And as I filmed this video, Nasdaq and Dow futures were down about 20 and 155 points, respectively.

From a technical perspective, the SPDR S&P 500 ETF Trust (NYSEArca: SPY) is trading above its 50-day moving average, trying to make new highs. I expect resistance around the 403 level. However, if you look at the Invesco QQQ Trust Series 1 (Nasdaq: QQQ), it's still lagging below its 50-day moving average. 

Here's what I anticipate happening next…

In today's video, I'll explain the biggest news report impacting the stock market this week… the top companies to benefit from stimulus checks… an update on the global semiconductor chip shortage… the biggest market-moving reports… and two top pullback stocks I'm targeting now. 

The best way to trade these two pullback stocks would be to buy above the recent swing high with a stop loss right below the swing low. And my price target would be twice my risk… 

 

P.S. There's a little-known rule causing a glitch in the stock market…

And those who can spot it have the chance to grab double-, triple-… even quadruple-digit gains overnight

That's what happened with KNDI when it saw a 2,340% gain…

Wall Street legend and Forbes contributor Adam Sarhan has found the glitch, and he's going to share it with you!

Click this link to see how.

 

The post 2 Pullback Stocks To Target This Week appeared first on Wealthpress.

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