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Chart of the Day / Education: Three Top Pot Stocks that Should be in All Portfolios

Education: Three Top Pot Stocks that Should be in All Portfolios

January 22, 2019

Global sales of marijuana are exploding.

According to Arcview Market Research and BDS Analytics, spending on marijuana could grow 38% this year to $16.9 billion from $12.2 billion in 2018, and from $9.7 billion in 2017.

Better yet, Canada became the first industrialized nation to legalize marijuana.  More U.S. states are approving its medicinal or recreational use.  HR 420 is making its way through Congress.

“We believe further US decriminalization of cannabis including for recreational use is very likely over time,” RBC said, according to Business Insider. “It ultimately starts with US voters who across demographics are supportive of cannabis legalization.”

At this rate, multi-billion-dollar marijuana sales may just be here to stay.  It’s just something to keep in mind if you’re looking for a hot investment opportunity.

Three Major Players to Consider

Opportunity No. 1 – Tilray Inc. (TLRY)

Shares of TLRY attracted big interest in recent weeks after its biggest shareholder said it would hold the stock until at least the second half of 2019.

“We do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019,” Privateer Holdings’ Michael Blue noted. “When we decide to distribute shares, we will do so in an orderly and deliberate manner to maximize tax-efficiency considerations for Privateer investors, while also taking into consideration potential impacts on Tilray’s public float. And we will do it in a way that reflects our long-term confidence in Tilray’s business model and management team.”

Also, TLRY appears to be in good shape fundamentally.

Not only does it have ample production capacity, it expected to have 912,000 sq. ft. of growing space by the close of 2018.  It also had supply-agreements in British Columbia, Quebec, Manitoba, and Yukon with a medical marijuana agreement in place with Novartis. And, according to the company’s SEC filings, it had also made agreements with pharmaceutical distributors in 12 countries, had four clinical trials in three countries and was among the first companies to have licenses for cannabis cultivation in two countries: Canada and Portugal.

TLRY is just one of many hot pot stocks you may want to consider buying for 2019.

Opportunity No. 2 — CannTrust Holdings (CNTTF)

Over the last few weeks, the company applied to list its shares on the NYSE.  “CannTrust has firmly established itself as one of the top licensed producers in Canada with a global platform rooted in trust, science and innovation,” CannTrust CEO Peter Aceto said. “A listing on the NYSE is a natural step forward in our evolution as we look to broaden our investor base, increase the company’s exposure and expand our business on an international scale.”

Opportunity No. 3 – Canopy Growth (CGC)

CGC could produce up to 500,000 kilograms of annual peak output, and is also attracting substantial interest from corporate America.  Remember, Constellation Brands invested billions in the company and now holds a 37% equity stake.  In addition, Canopy is also investing between $100 million and $150 million in a hemp processing facility in New York after being awarded a license to do so.