These top performers continue to show great potential for this year. Here’s all you need to know…

At the National Institute for Cannabis Investors, I know a lot of you have joined at different times, meaning not everyone sees our reports and research information at the same time.

That’s why, today, I wanted to give you a quick update on two cannabis investments I’ve previously talked about.

To get everyone up to speed or as a reminder, the two companies I’m about to mention are not in the Cannabis Investor’s Report model portfolio or the Cannabis IPO Insider model portfolio.

There’s a few reasons for that.

One of the companies in particular does not have a direct involvement in the marijuana industry. It’s something you could call a “backdoor play.” The other has a unique business model, and like the first pick, it doesn’t “touch” the plant directly.

Ultimately, I still think that they could make you money, so I wanted all of our members to be aware of these companies.

Let’s jump right in and see what kind of profit opportunities these two plays could offer for the rest of 2019…

The Cannabis REIT

Back when we launched the Institute, I told members in this report about Innovative Industrial Properties (NYSE: IIPR).

Innovative Industrial Properties operates as a real estate investment trust (REIT). That means Innovative acts as a landlord for cannabis companies.

There has never been a better time to be a cannabis investor than right now, and cannabis IPOs are where the action is at. To find out how you can get involved with these, click here.

It’s really a unique marijuana stock, as the company doesn’t grow or sell cannabis. Since Innovative doesn’t “touch the plant,” the New York Stock Exchange was comfortable giving IIPR a listing. When I talked about this company on October 23, 2018, it was trading for $39.97.

At the end of last week, it was trading for $82.10 per share.

The markets are choppy right now, so this is a particularly interesting play because it pays a dividend.

The right dividend-earning stock can be a good defensive play during volatile times, and IIPR should also be a benefactor of an appreciating stock price.

We take a deeper dive into Innovative Industrial Properties with our free guide, which you can access right here.

Cannabis Bankers

In March, I wrote a report about Severn Bancorp Inc. (Nasdaq: SVBI).

Some banks are too afraid to work with cannabis companies, and that makes sense. It’s still illegal under federal law.

But Severn has decided to limit that risk by working with medical cannabis firms following state law.

One trend in Severn’s favor – not related to the marijuana industry – is an increase in bank consolidation. Analysts and many economists have been calling for larger banks to buy smaller ones for some time now, and it is finally beginning to happen.

In particular, regional banks want to become larger and are buying other regional banks as well as smaller banks. The reason is consumer driven. Consumers demand advanced services like mobile banking, fast mortgage turnarounds, and instant and personalized customer service. The technology behind all those services is expensive, and smaller banks have a hard time keeping up.

Severn is a logical consolidation candidate, with only six branches but a large market share in one of the richest counties in America – Anne Arundel County, Maryland.

Also, cannabis has been a big part of the turnaround story at Severn, particularly when it comes to profit growth. Cannabis-related deposits and loans were around 2% of Severn’s total deposits and loans as of September 30, 2018.

The stock was trading for $8.77 on March 14, and I expected it see a run up to $9.80 fairly soon. However, with the selloff in the broader market, the stock price has been a little all over the place, as you can see in the chart below.

Over time, though, I expect it could climb near its all-time high of $21.14 per share. Severn is also another dividend-paying stock. As of the end of last week, it paid out $0.12, which is a yield of 1.3%.

These type of opportunities that don’t quite fit our model portfolios don’t really come up often. I don’t want to talk about just anything that looks like a back-door cannabis play.

With that said, if anything interesting crosses my path, I’ll make sure you’re aware of how to profit.


Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Due to one landmark event last year, analysts predict sales in the hemp CBD market will skyrocket to $22 billion by 2022… that’s a jump of 3,622% in less than three years. With predictions like these, there’s no better time than right now to get involved in CBD companies. Our experts have identified two companies that you don’t want to miss. For more information, just click here.


Comments

15 responses to “2 Cannabis Picks to Watch for the Remainder of 2019”

  1. It would be nice on your website to have a place to enter symbols of cannabis stocks and get information about them. Some of us may have purchased some stocks you have not recommended and would like to see what you think about them.

    • You can enter stock ticker symbols in the search bar at the bottom of the page where it says “Find our complete database of Cannabis Stocks…” That should take you to what you’re looking for!

  2. Are you saying to Buy or not to Buy, that is the question, when it comes to Severn Bank, and Innovative Industrial?

  3. I’m only investing a couple hundred dollars a month to buy penny stocks that’s what I’m mostly interested in I have plenty of time to pay attention so even if I have to wait 6 months to a year or even a year and a half that’s fine but I want something with the big big big returns possibilities

  4. I have 100 shares of SVBI, uour report said they paid a dividend of .12.
    My question is how will I be notified of this dividend?
    Thanks for all the info. you send.

    Gene Miles

  5. As a beginner who has never ever been apart of any kind of stock trading I need step by step instructions. There’s several Cannabis stocks but is there something to break down the top 10 or 25. What are the best Cannabis stock to trade in at a ground level rate? I get so many different alerts, reports it is overwhelming.

  6. i have the same question as Tom. is Aphria a good buy at this level or is there something going on that is depressing the stock?

  7. I have small positions both in IIPR and SVBI. The question I have is what will happen to these companies if the cannabis legalization on the federal level will take place. I strongly believe it’s coming and only the timing is uncertain. While getting closer to legalization the obstacles for the banks might disappear step by step. SVBI could face growing competition from other banks serving the cannabis industry in future which, however should have a limited impact given that only 2% of their deposits and loans are related. My thinking is that it could be more severe for IIPR. Their business model seem to benefit from the fact that bank financing is hardly available for cannabis companies right now. In fact, IIPR reduces the financing needs of their clients and earns comparatively high rents in return which makes their business profitable. Will this model remain sustainable if…… ?

  8. To me it’s hard as a new investor to understand some of the terminology that y’all talk about, sometimes it would be great to break it down to a new investor’s level, I have been studying a lot and reading but still have problems understanding some things, thanks

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