We kicked off the week with a 40% win. And that’s just an early taste of how profitable the cannabis industry will be…

Earlier this week, I sent a trade alert to the members of Cannabis Investor’s Report. After opening a position on December 17, 2018, I decided it was time to sell Hexo Corp. (NYSEMKT: HEXO).

If you were able to follow along my instructions exactly, you made a 40% profit.

If you aren’t familiar with the company, Hexo produces marijuana for the medical market in Canada, and it’s gearing up for the recreational market. As a small (by Canadian standards) producer with a regional focus, HEXO could prove an attractive acquisition candidate at some point.

Cannabis Profits Daily readers won’t be surprised to learn that I like Hexo’s branding strategy – that’s the key differentiator I see separating the good companies from the also-rans.

Hexo also scored with a lot of the other things I like to see in a cannabis company – low cost production, a top-notch management team, and a key partnership with a larger company (in this case Molson Coors). An imminent listing on the NYSE American exchange didn’t hurt either.

I still like the company, but I thought it was as good of a time as ever to net a double-digit gain in a short time.

My trader hat was on for this trade as much as my analyst hat. Hexo had been unfairly beaten up during the cannabis market downturn in November and December of last year. I knew two things: that it was time for the cannabis market to turn, and that Hexo would be among the strongest and fastest turnarounds.

This chart tells the story. December 17 was the date I identified when it was time for the market to turn, so I definitely wanted to put Cannabis Investor’s Report members in something. But what? Checking the charts, I found that after being a better performer for some time, albeit in a falling market, Hexo’s performance fell short of industry leader Aurora Cannabis (NYSE: ACB)‘s right on the date when I called the turn. That was our chance! We got one of the highest-quality cannabis stocks not only at a low price, but at a low price relative to its closest comparable stock.

You can see the results after that. Aurora’s stock recovered nicely – it was up 33.6% in the 2.5 months since we entered the trade. But Hexo recovered even more nicely – up 54%.

And that disparity in return is why I recommended selling it when I did. It bounced back stronger than Aurora and much stronger than the overall stock market. With it now trading closer to a fair price, I judged that it was appropriate to take some money off the table to make room for the next opportunity.

Why not buy Aurora, since it’s now the relative underperformer? Because I think there are even better opportunities now among some smaller players. Back in those down days of December I knew that the biggest, most liquid cannabis stocks would be the first to come back. But having come back, they’re now more driven by their actual results than by technical factors.

I’m excited to hear how you’re going to use the money you made from the Hexo trade in your personal lives.

I know some of you are using it to buy more cannabis stocks, and we’ve seen others say they want to sit on the gains and wait for the next big opportunity.

Whatever you decide, we’re thrilled to be there with you for the ride.

Thanks for being an important part of the National Institute for Cannabis Investors,

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. This is the ultimate pot stock investing tool – and it contains information on hundreds of the biggest, most tradeable cannabis stocks. Our highly secured platform has real data on the industry’s best up-and-coming cannabis companies, so you can locate tomorrow’s winners on your own – and for LIFE. Click here to see the details.


Comments

26 responses to “This Is How You Identify the Top-Tier Cannabis Stocks”

  1. I have never invested in any stocks before, I have only $500.00 to invest I have no idea how or what to do, so do have to go through a company like Charles Schwab or do it directly

    • I’d start with a Robinhood account… It’s the simplest platform for trading. Great for newbies like me… Then graduate to the more complicated platforms with way more info at your fingertips. I chose TD Ameritrade but Schaub is just as good.

  2. IF I WANT TO INVEST IN STOCK HOW DO I SET IT UP TO GET STARTED AND I HAVE A HUNDRED DOLLARS TO START. CAN I START NOW

    • Make an account with TD Ameritrade. I recommend them as you can get into the Canadian markets at a much higher level than other brokerage houses. $50.00 dollar start, and follow directions.

    • Can I apply with only $100.00 also. I have some funds in “Stash” account but not sure it is the best route to take??

  3. Yes, However TD Ameritrade would be a better choice, because the platform the company uses called think or swim is what the elite traders use.

    • Stash is fine for a starter account. Watch your value. Do not buy on margin. When your value exceeds a certain level they start charging you. At that time you may want to sell assets or transfer to another brokerage account. Read their disclosures!

  4. Why do you say to buy a half position now.If your paying commission fees and when you go to buy the other half the stock has risen in price.It would seem to me you would what you could afford all at once

    • It’s called averaging. If the stock drops below your original purchase price,you can pick up more shares cheaper. This gives you an overall high profit.

  5. I have owned both Aurora and Hexo. they both did well. The thing I like about Aurora is that its one of the few, low priced and optionable cannabis stocks. Not only am I making nice gains but writing short term coverd calls im doing quite well with it. And today its way up!
    Thanks NICI

  6. i have never invested in anything before.What do i do and who do i invest in as i am on a fixed income, how much money do i need to invest?

  7. I’m just starting to invest not sure what I’m doing but trying. I’d really like to learn. I’m just a small investor on about 7 different stocks. Recently I was scammed out $18,000 USD dollars trying to get my home refinanced. So I have to start small. How much does it take to buy into something like this? Am 66 years old and on limited income. Thank you for your time.

Leave a Reply

Your email address will not be published. Required fields are marked *