Category: Pot Stocks

Investors and traders all over the world are very interested in pot stocks. The investing possibilities rising after the legalization of marijuana in several countries, primarily in Canada and some US states. Hence, pot stock investing become a big trend among investors. Pot stocks become hot stocks.

Pot stocks are characterized by the hyperbolic rise and fall.

They are extremely volatile. For example, some of those companies moved from penny stocks to tens of billions of dollars worth of companies. And back down again.
They behave like cryptocurrencies. These stocks are able to reach breathtaking heights and to drop unpredictably overnight. Anyway, they grabbed our readers’ attention. Traders-Paradise thinks the investors’ attention could rise more and more toward pot stocks. They have similar patterns with crypto investing and trading.

Who is interested the most to invest in the pot stocks?

Traders-Paradise’s experience is that our advanced trading and investing readers have the highest level of interest. Following the stats, the younger are the most interested.

This gives essential sense to us. These companies are young also. It’s almost impossible to analyze their historical data due to their youth. They don’t have long track records that will allow traders and investors to examine their fundamentals. Most of them have insignificant sales numbers and the majority aren’t profitable. Their price to earnings or price to growth ratios are almost trivial.

The mainstream market for this investment opportunity is growing. So we think that they deserve our visitors’ attention. So, Traders-Paradise is here to provide valuable content about trading and investing in them.

Cannabis Stocks Could Bounce in 2020

Cannabis is now legal in many countries and their number will increase. Public support for cannabis legalization is undoubted. That all can provide cannabis stocks to jump in 2020.

Even though the cannabis sector gets knocked down almost on a daily base, some pot cannabis stocks could bounce in 2020. Yes, Canadian sales missed expectations after the legalization of recreational use of cannabis and remained to stay limited globally.
But the Canadian sector could have a great stimulus in 2020 with the Cannabis 2.0 rollout. Also, the retail store number increase is one of the trump cards. For example, Canopy Growth plans to open 40 retail stores a month during 2020 in Ontario. Great plan, indeed but will the government really open up the market to such a huge development?
The stock market wasn’t good in 2019 for cannabis stocks, and investors have to look at the chances of beaten-down stocks. But we truly believe that some of the cannabis stocks could bounce in 2020.

One of them is the Cronos Group (CRON)

The Cronos Group missed out on revenue estimates for Q3. It was $1.3 million lower. The stock followed the company’s “success”, it also has dropped and hit the new lows.

The important fact is the company still grew revenues gradually generated $29.4 million in revenues for the last nine months. Also, the company raised up the production but investors didn’t see the benefit from that. Actually, they were very disappointed by the fact that Cronos sold 8x the kilogram in September but at half the net revenue per gram. But the company ended the third quarter with $1.14 billion on the balance sheet while the company’s value was $0.7 billion. So, this cash flow is Cronos’ main advantage.

It gives the company an opportunity to invest further while the majority of the rivals don’t have such a possibility. CRON has an optimistic Buy consensus rating from Wall Street. Moreover, the average analyst price target is $13.45 and the last closing price was at $7.14.

Tilray (TLRY) Cannabis Stocks Could Bounce

Tilray is one of the most popular cannabis companies in the world. The popularity came from an unusual event after its IPO. What happened? The crazy prices followed the IPO with the stock price over $300 shortly after IPO.
Tilray was the first cannabis company in history to list directly on one of the major US exchanges at $17 per share. Only a few weeks later, the stock price hit the insane price of $300 per share. It was the hottest IPO in 2018.

But the year after…

The average net selling price per gram dropped to $3.25 last Q3, the prior price was $6.21. A gross margin of 31%, the adjusted EBITDA loss of $23.5 million, and only $122 million in cash are weak results.
But Tilray appears well-positioned in combination with the InBev JV which may be catalysts in 2020 and make these cannabis stocks could bounce.

The 2020 revenue estimates are only at $316 million but the stock has picked analysts’ optimism. They forecast a possible upside of over 40% and the stock price at $29.57. There is hope for Tilray.

OrganiGram (OGI)

OrganiGram Holdings is down from the high above $8 in May it falls to $2.5 on December, 24 but it is 1.62% more than the previous close price.

The day before, the company announced the first of its ‘Cannabis 2.0’ products have been released. Trailblazer Spark, Flicker, and Glow 510-thread Torch vape cartridges, filled with C0₂-extracted cannabis concentrate oil and botanical terpene.

Some unpleasant events occurred before this announcement.

For the quarter ended in June, OrganiGram generated revenues of $24.8 million. Everyone was expecting a great year. Instead, shipments fail to $20.0 million, the company was faced with $3.7 million in provisions, and the company forecasts revenues of only $16.3 million. The EBITDA profits were shifting into the loss.

Now, OrganiGram could raise more cash.

That’s the reason why the stock has a ‘Strong Buy’ rating. Analysts are predicting an upside potential of 225% from the current price of $2.5.

Bottom line

Why Traders Paradise is so sure that any cannabis stocks could bounce in 2020?

First of all, cannabis sales will increase.
Cannabis is now legal in more-than-ever countries and their number will increase. Some experts state that the cannabis industry has the potential to advance to $130 million per year soon. This isn’t likely to happen in 2020, but this number figure out how fast the industry is growing.

Public support for cannabis legalization is undoubted. The public is more aware of the potential benefits of cannabis. Also, we can expect new strains of cannabis. Moreover, cannabis-infused products will become more broadly available, and some of these products will be produced by companies that are well-known in the drink industry. For example, Molson-Coors and Coca-Cola both are considering to produce drinks with CBD.

Experts found that cannabis can have important benefits for people’s general health. For example, cannabis can potentially lower cancer risk. Moreover, cannabis is much safer than alcohol. Right?

All this put together, the cannabis stock could easily bounce in the year ahead.

26th December 2019
Canopy Growth Lost $20.3 million

Canopy Growth lost more than it was estimated. The reasons are numerous.
Its stock is in big troubles after Q2 earnings report on

Canopy Growth (NYSE: CGC), announced the second-quarter earning a result on Thursday, Nov. 14. Canopy Growth, the largest marijuana stock in the world by market cap, reported it lost $20.3 million over the second fiscal quarter. The loss came from returned cannabis oil products. Simply, it looks people would like to smoke marijuana but don’t like its oil products and the retailers in Canada returned it to the producer. It looks the rocky quarter is behind the company. The sales dropped, and the price resulted in a loss of $1.08 a share during the quarter.

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Its shares fell by around 11% in pre-market trading. That was the response to the report. If this trend continues, its price could easily drop by up to 20% this week. Yesterday, November 14, the price was $15.84 which is a decline of over 14%. Bad days for this company with a market cap of $5.285B.

Net revenue for the second fiscal quarter was $57.8 million, dropping from the Q1 score of $68.3 million. The company’s net loss increased. It is $282.7 million.
The performance was worse than the experts expected, they were expecting net revenue of $68.4 million and a net loss of $0.31 per share.
The expanding market for medical cannabis outside improved 72% over Q1 to $14 million. The same came from recreational cannabis sales – an increase of 24% to $10 million.

What tends to go wrong, will go wrong

Canopy Growth’s Q2 report exposed two modest but positive improvements: the gross cannabis revenues grew by 2% and the company closed this period with $2.04 billion in cash, its equivalents, and securities. But that’s all.
Canada’s legal marijuana market has problems that influence all authorized cultivators. Company’s CEO Mark Zekulin stated:

“The last two quarters have been challenging for the Canadian cannabis sector as provinces have reduced purchases to lower inventory levels, retail store openings have fallen short of expectations, and Cannabis 2.0 products are yet to come to market”

The thing that went wrong is that Canopy took a huge $24 million restructuring debit. To add more pain, the company posted an inventory charge of $12 million. And its Q2 net revenue is $57.8. Much under Wall Street expectations.
Zekulin said that the management believes this situation is short-term and “Canopy continues to be best positioned with cash-on-hand, a world-class infrastructure, and a portfolio of intellectual property”.

Canopy Growth lost, what will happen to the shares?

Canopy’s shares will apparently continue to fall for several reasons. The company’s valuation continues separated from the rest of the legal marijuana industry. For example, its shares are trading eight times more than the next year’s projected sales despite the fact that the company will end up dropping under those optimistic revenue predictions.
The various problems of the Canadian cannabis market could need years to be solved.

Investors’ expectations that the marijuana legalization will be done in a short time all over the world, firstly in the US, were unrealistic. And it looks like it won’t be soon. This subject has barely been touched on by any of the contenders in the next year’s presidential run.

The Canopy Growth stock is at its weakest level since 2017. It has lost over 40% of its value this year. Canopy’s shares are deeply unlikely to bounce anytime soon.

15th November 2019
Cannabis Companies Are Infusing Optimism Into Markets

There are so many prejudices about cannabis stocks. Yes, the truth is that most cannabis stocks are losing money. But if you take a look at the industry as a whole you will find it is profitable from the beginning.

Yes, the bulk of cannabis companies based in the US and ADRs are trading trade over the counter. But several cannabis companies are traded on the NASDAQ. That adds liquidity as opposed to the OTC market. Anyway, some investors prefer NASDAQ listed cannabis companies.

But investors are also very informed that hot investments, like cannabis, demands time to improve. This kind of investment isn’t profitable from the beginning, and investors know that. Several reasons lie behind this. First of all, it is regulation.

Regulatory issues have essentially restricted growers to set their products into dispensaries. And taxing the legal pot consumers, also. The end result is that the black-market is blooming. It will take time to fix all these issues. The consequence is that a lot of cannabis companies gain losses.

But there is one rare part – extraction service providers. Investors are able to recognize them easily, they are present in the market. For example, MediPharm Labs (OTC:MEDIF), or Neptune Wellness Solutions (NASDAQ:NEPT). Their clients can use resins, and cannabinoids, edibles, or infused non-alcoholic drinks.

The cannabis industry has begun to shift into the green.

Moreover, as the cannabis industry has grown, uplisting from an OTC market to a high-ranking U.S. exchange has become a great achievement for many growing cannabis companies.

The NASDAQ was the first automated exchange and has long been synonymous with technology and biotechnology. The cannabis companies on the NASDAQ work in the biotech area of the industry. Here are the NASDAQ-listed cannabis stocks we want you to pay attention to.

Cronos Group Inc. (NASDAQ:CRON)

It is a Canadian company that holds and wants to locate subsidiaries and licensed producers. Last year Altria invested $1.8 billion in Cronos.

Corbus Pharmaceuticals Holdings Inc. (NASDAQ:CRBP)

It is a cannabis biotech company that researches, developing, and manufacturing. All their products are for cannabis drugs for chronic, inflammatory and many other diseases.

GW Pharmaceuticals Plc. (NASDAQ:GWPH)

This company is developing a selection of CBD drugs. For example, Sativex for the spasticity associated with multiple sclerosis and tumor pain. Also, Epidiolex for the therapy of childhood epilepsy. Their products are in use in countries outside the US with regulatory approval. Epidiolex has FDA permission as a therapy for two forms of early-onset epilepsy. GW Pharmaceuticals is developing its products for glioma, autism, and schizophrenia therapy.

Bottom line

The most interesting thing about these cannabis companies is that they are starting to uncover their true potential. Or we are starting. And for now, the best choice for investors is extraction companies.

This subsidiary cannabis niche is now profitable. Can you imagine how much they can increase in the coming years?

30th October 2019
Crypto cannabis is very hot now!

The cannabis industry is hotter than ever, cryptocurrencies got high

3 min read

Crypto cannabis is very hot now. PotCoins are digital coins you can send via the internet, which allow cannabis enthusiasts to interact, transact, communicate and grow together.

Cannabis cryptocurrencies or weed coins are tokens by the marijuana industry. Pot is now completely legal in Canada and Uruguay, and several states in the United States. Consumption of marijuana for medical use is legal in some other states, and also in countries like Israel and the Czech Republic.

Crypto cannabis market

The cannabis market is one of the quickest growing markets but is held back in some countries by states laws that still consider it an illegal drug. That makes problems for the industry to raise money, which is where cannabis cryptocurrencies enter the scene. Weed coins intend to change the nature of the medium of payments for the legalized cannabis industry since traditional banking systems make obstructions for the business.

The booming marijuana industry and cryptocurrencies could present an investment opportunity.

There are several ways to invest in crypto cannabis and it becomes easier to buy legal weed with cryptocurrency. Hence, like any other investment, comes with its own risks. In case you are interested, here is the list of 10 weed coins in the market.

1. PotCoin (POT) – This decentralized crypto became the first of many cannabis cryptocurrencies in 2014. Since then PotCoin is the gold standard. POT’s max supply is 420 million.PotCoin’s market cap peaked at $90,097,520 on January 1, 2018. In June, PotCoin spiked again when basketball player Dennis Rodman wore a PotCoin.com t-shirt to the US-North Korea summit. PotCoin’s valuation was up for 20% on that day. You can buy PotCoin on Bittrex, Changelly, PotcoinTrade, and PotWallet. With a market cap of well over $10 million, PotCoin is the highest valued weed cryptocurrency.

2. HempCoin (THC) – HempCoin (THC) isn’t designed just for cannabis. THC coin is designed for the entire agriculture industry, from tobacco to cannabis and hemp, came into being to facilitate buying farming supplies. Today, you can trade THC on Bittrex and qTrade, it hit a record high market cap of almost $160 million in early 2018.HempCoin is expanding. By 2019, HempCoin will introduce HempPay, a payment platform for buying weed. HempPay will be an app, website and cryptocurrency credit card.

3. Paragon (PRG) – Paragon isn’t for buying weed, it isn’t like other cannabis cryptocurrencies. Paragon’s PRG token is focused on helping weed businesses grow. Paragon developed ParagonCoin (PRG) in order to provide cannabis businesses to pay rent. What is it about? ParagonSpace is a brand-new cannabis coworking space in Los Angeles and PRG is the only currency that ParagonSpace accepts, whether you’re buying coffee or renting an office.ParagonSpace hopes that their Ethereum-based cryptocurrency will work for business to business and business to customer interactions.ParagonCoin is still in its early days. They’re still building an all-encompassing cannabis business ecosystem with smart contracts, a coworking space, and cryptocurrency, all on the blockchain. Paragon’s total supply is of 164,936,584.

More participants in the crypto cannabis market

4. CannabisCoin (CANN) – CannabisCoin is another cryptocurrency designed to making buying medical marijuana easier. It came into 2014 a few months after PotCoin was CannabisCoin. It is peer-to-peer open source currency and like PotCoin, was created to make transactions for medical marijuana dispensaries easier. Initially, it was very popular but it has generally failed to deliver much for investors. This cannabis crypto made waves back in 2014 when dispensaries sold 1 gram of cannabis for one CannabisCoin.The total supply of CannabisCoin is set at 91,859,176, with over 77 million currently in circulation. The currency has a market cap of $5.2 million.

5. CannaCoin (CCN) – Cannacoin is a cannabis altcoin that runs on its own decentralized blockchain and has its own Cannacoin wallet. Forked off Litecoin, Cannacoin uses Proof of Stake-Velocity. Cannacoin is open-source and developers can use it to create other applications. For example, CannaPay a website committed to cannabis credit cards and goes through its own ICO is connected to Cannacoin’s protocol. Cannasight, another Cannacoin project, provides developers to create a multiplicity of open-source applications. Cannacoin has been around since 2014, most of its projects are in early stages of development. CannaCoin has a market cap of $272,000. There’s a circulating supply of 4.7 million CannaCoins.

6. DopeCoin (DOPE) – DopeCoin, was launched in 2014, was remodeled as DopeCoinGold in early 2017. DopeCoin aim is to give people a way to buy weed anonymously without paying transaction fees. Their consideration doesn’t cover legal matters. They don’t care if someone is getting weed from a licensed dispensary or an online black market. Merchants in both the U.S. and in Europe accept DopeCoin payments.DopeCoin also has its own cryptocurrency wallet. This dissenter cannabis cryptocurrency is capped at 200 million.

7. Tokes (TKS) – This cannabis currency aims to move the entire weed supply chain and customer transactions away from cash. Unlike other cannabis cryptocurrencies which operate in a legal gray area, the Tokes platform follows anti-money laundering rules and Know Your Customer financial guidelines to detect money laundering. Tokes provides the security of a Financial Industry Regulatory Authority compliant financial institution. You can buy TKS, keep it in a Waves Wallet and spend it as currency at certain dispensaries. There is a supply of 50 million TKS.

8. GanjaCoin (MRJA) – GanjaCoin is weed cryptocurrency for buying weed both from dispensaries and online. On GanjaCoin’s website, you can buy CBD products and smoking accessories. GanjaCoin is a privately created cryptocurrency but is working on dispensary partnerships.GanjaCoin offers the comfort of virtual payment. For weed producers, cannabis cryptocurrency is even more favorable. With GanjaCoin, they pay low fees via blockchain.GanjaCoin is unique because it’s the first one backed by feminized cannabis seeds. In the future, GanjaCoin will back each coin with a whole gram of weed. The benefit of using this model, in addition to offering a value guarantee, is that it keeps supply low. There will only ever be 42,000,000 GanjaCoins, which is lower than other cannabis cryptocurrencies. GanjaCoin is currently listed on MasternodeXchange and Stocks. Exchange and provides their own cryptocurrency wallet.

9. Growers International (GRWI) – Growers International dates back to 2015. They wanted to meet the particular needs of weed producers. As a member of Growers International’s decentralized platform, marijuana growers can chart seed-to-sale data and keep a record of their plants’ genetic makeup. The immutability of the decentralized ledger lets growers prove a strain’s authenticity. Their partners are already buying supplies using the GRWI token. Growers International plans on offering smart contracts for cannabis farmers, they can use their smart contracts to complete supply costs, electric, labor, etc. Growers International has a cryptocurrency wallet. GRWI is trading on Cryptopia and CCEX.

10. KushCoin (KUSH) – KushCoin is based on blockchain technology to the medical marijuana supply chain. This cannabis cryptocurrency seeks to connect the process of growing and selling weed, staying in compliance with federal, state and local laws. The point is to have different levels of the supply chain so, consumers to avoid high fees and inconvenience by paying with a cryptocurrency. In 2014, KushCoin started with the goal of addressing all these issues. Their plan was to create a KushCoin wallet, a seed bank for KushCoin users and a crypto credit card. According to Bitcoin Forum, someone hacked KushCoin. But the developer recently got back control.
There are also GreenMed (GRMD), Sativacoin (STV), Cannation (CNNC), Bongger (BGR), Marijuanacoin (MAR), BlazerCoin (BLAZR), Budbo (BUBO).

Bottom line: The most important aspect of starting your own cannabis-related business is actually the most important aspect of starting any kind of business: picking the angle you’re most happy with.

Investing in a cannabis company comes with a number of risks that could negatively affect investment at any time. There remains a large amount of uncertainty in this emerging sector, especially as laws and business models continue to evolve.
Some investors may see others flocking toward an emerging sector and can be compelled to follow out of fear of missing out on an opportunity.

However, behavioral insights shed light into the way that people make decisions about money and has shown that investors who follow other investors’ behavior are more likely to invest in speculative bubbles that could burst. If that happens, investors could stand to lose some or all of their investment. But isn’t every investment potentially risky?

The risks in crypto cannabis

Many cannabis companies are promising investors the opportunity to capitalize on the potential for considerable future growth. A number of companies are looking to expand.

The cannabis industry is hotter than ever, with new deals announced almost every day, and merger and acquisition activity at an all-time high.

As per Viridian Capital Advisors estimates, investments in the marijuana industry reached $6.6 billion in the first 10 months of 2018. According to New Frontier Data, sales are expected to surpass $9.5 billion in 2018, some forecasts say to $12 billion.
Risk Disclosure (read carefully!)

21st October 2018