There’s some big news this week, and we’ll start off with a CEO buying $2 million worth of shares…

There’s a lot of noise going around in the cannabis industry right now, so I want to separate that noise from what’s important, especially when it comes to your investments.

The first thing I want to talk about is Acreage Holdings (CSE: ACRG, OTC: ACRGF). CEO Kevin Murphy recently purchased 154,000 shares of Acreage. At the time, those shares were worth more than $2 million.

There’s an old saying that there are plenty of reasons to sell a stock, but there’s only one reason insiders buy.

It’s because they expect the stock price to go up!

You can see in the chart below that, when the news broke, prices shot up.

I told you last week one way to invest in Canopy Growth Corp. (NYSE: CGC) was through Acreage. Canopy will buy Acreage, but the deal was structured to only close when cannabis is fully legal in the United States. It has its risks, but we know that legalization in the U.S. is a “when” and not an “if” scenario.

Next, I want to talk about a cannabis company’s recent earnings and provide an important note about an impending acquisition…

Organigram Holdings Reports a Loss

While Organigram Holdings Inc. (Nasdaq: OGI) isn’t in our model portfolios, I know a lot of our members own shares, so I wanted to provide you with some insight.

Organigram is working on a new way to grow cannabis. It’s a little complicated, but here’s what you need to know as an investor. Organigram experimented with a new method for cloning cannabis plants, which has been sweeping the industry, but it learned that it didn’t work for many strains or at a large scale.

However, I’m willing to give companies a pass when it comes to experimenting and finding out what works and what doesn’t. Remember that this industry is just in its infancy, and because of federal restrictions holding back research, there’s still a lot of work that needs to be done.

The company also reported a third-quarter loss thanks to lower reorders from Ontario and British Columbia.

With the CEOs I’ve been speaking with, that’s been a common issue.

Dispensaries will place a large initial order from a producer, then dispensary managers will place smaller orders from those producers to refill the shelves. Signing up those new customers generally happened before the start of 2019, so cannabis companies reported a large amount of revenue, all at once.

Since those new customers are no longer new customers, sales dip because the orders aren’t so big.

For Organigram specifically, Ontario made a large number of orders ahead of retail stores opening in the province.

“Not having that replenishment in Q3 had an impact,” Organigram’s CEO said on a conference call.

However, Ontario is expected to place another large order, with 50 more recreational cannabis stores expected to start opening in October. That should provide another bump in revenue in the short term.

For a longer view, Organigram is also expected to sell edibles, which will be legal in Canada by the middle of December. Edible sales will be another growth catalyst, and I’ll have more reports on the best ways to profit from that market.

The company is also going to sell vape pens, which can have high margins.

Next, I wanted to talk about what is happening with one particular acquisition.

CBD sales are on track to hit $22 billion by 2022. That’s why our experts have identified two CBD stocks with massive profit potential… both trading under $4. Find out more info here.

Origin House/Cresco Labs

Shareholders have approved a merger between Origin House (CSE: OH, OTC: ORHOF) and Cresco Labs Inc. (CSE: CL, OTC: CRLBF), but it still might be some time before the deal finalizes.

On June 10, the U.S. Department of Justice Antitrust Division requested additional information on the proposed transaction. The uncertainty has shareholders of both companies worried, and the additional information requested could delay the deal closing longer than most investors would like to see.

There’s always a chance it doesn’t go through, but Cresco CEO Charlie Bachtell believes the deal is going to close, and so do I.

“We are confident that we will be able to submit all requested documentation to the Department of Justice as soon as possible and continue toward closing of the transaction,” Bachtell said in a statement.

One thing to note is investors hate uncertainty, and the uncertainty behind this deal is similar to the one between Canopy and Acreage. That’s why you’re seeing a disconnect between the prices of where Origin House is trading now, and where they should be trading.

Finally, I know I normally answer questions on Saturday, but I wanted to take some time and answer a question today for one of our fellow members, as some of you may also be having this issue.

Your Question Answered

There’s still some kinks brokerages need to work out to provide better customer service to cannabis investors, but one of our members has a pretty big issue.

Jeffrey H. asks: “Hi, I trade with Merrill Edge and they have recently stopped supporting trading of EMHTF, Emerald Health. Could you tell me what brokerages you know that support this stock that I could trade with?”

Jeffrey, I’m sorry to hear that Merrill Edge is making it harder on you to trade cannabis stocks. My staff looked into it, and we saw that the ticker EMHTF appears on Etrade. On our support page, we also have a list of other brokers that should allow you to trade Emerald Health.

I hope that helps!

Greg Miller

Executive Director, National Institute for Cannabis Investors

P.S. Our most conservative experts’ estimates say that each of these six companies could produce 1,000% returns – or more – when they go public. This means that more than $5 billion could be created by each company on IPO day alone. If you want a chance at profits like these, go here now for more details.


Comments

18 responses to “What to Know About Acreage, Organigram, and Origin House”

  1. Morning Greg how are you? Thank you for your response much appreciated!!! Hope you have a great day and much success to all of us!!!

  2. Well Greg I followed your instructions from your alerts yesterday even though I am no where near as optimistic about the summer as you are. But I am not the expert and I guess that is why I paid you to be. Now with that said I hope you are right. Question what is the difference between A& B serious funding? As always thank you for all your assistance in helping me become a great retail investor. Much success to all of us in the future!!!!

  3. I would like to report a situation that happened to me recently. I renewed and extended my NICI membership and my debit card account showed “Cannabis Investors”. The next day I was at my car dealer and attempting to pay a hefty bill for my service and my debit card was delined. Checking on line I had a notice to contact Bank of America due to suspicious activity. Upin doing so it was evident they froze my account due to the word “cannabis” appearing in the transaction.

  4. Greg:
    This question is pestering me.
    Is Emerald Health Therapeutics. Owned and run by the same owners of Emerald Health Pharmaceuticals?
    One is public, the other private.
    I’m asking for Valerie Miller and myself.
    Regards,
    RJ Peters

    • The answer to that is both companys have the same CEO Dr. Avtar Dhillon, I invested in both, scroll down to see my other comment

      • I am patiently waiting for EMHTH to go back up, regain loss, and make a BIG profit. But now I understand they are going private under an “adjacent” name, and I will not make the huge profit I had hoped for!!! I invested in many good choices of MJ stocks over the past year, following your guidance and I expected to see some huge gains, but now it seems the stocks go down before it goes private in another way and only allows those paying big bucks to get in before trading on the regular market. Please explain to an avid investor and client? Jeanne

  5. I also have Merrill Edge as a broker and was wondering how much business they are losing as a result of not recognizing penny stocks. I guess the future will tell. I have my TD Ameritrade account which handles all my penny stock trades. which keeps me evenly balanced. Thanks for all you do Greg.

  6. No problem trading cannabis stocks on ETrade or TD Ameritrade. Been using both since the beginning of cannabis investing.

  7. I think the bigger question is why Merrill edge stopped supporting emerald health, for a brokerage company to stop taking commissions from a particular company is alarming their has to be an underlying situation, I have my suspicions that I wont get into here, my question to nici is that Dr. Avtar Dhillon is on the advisory board of nici, and he has a questionable past would nici be honest with its members and let us know if something isn’t right, and just to be clear iam an investor in emerald should we cut our losses and sell now,

  8. Just curious if you recommend buying more shares of Origin House at this time due to suppressed share price?

  9. Jackie Bourchardt, Cincinatti Enquirer, broke story of Acreage Holdings coming under investigation for its subsidiary’s, Greenleaf Apothocarie’s, deal with Acregae to run around state limits on number of outlets oermitted under Ohio law. Boston Globe also reported Acreage under investigation for violating same limits in Massachusetts. At same time Ohio is investigating Harvest for lying on licensing applications to run around state licensing caps.
    One needs factor in to the projections for future capacities and revenues, the liklihood that such projections are dialed back to State mandated licensing caps. Massachusetts and Ohio are major markets. Loss of projected revenues due to actual State mandated caps, which should temper projected valuations. Liabilities for potential fines and other State mandated restrictions should cause NICI to adjust its NICILytics rating on these big bad boys.

  10. I use Charles Schwab and never had a problem buying anything. A couple of stocks were not available on-line but a 5 minute call to global desk would do the trick.

  11. TD Ameritrade will cooperate on penny stocks. When Merrill Edge stopped this practice, I transferred 20+ stocks to Ameritrade.

  12. Don’t know if you can answer this…………I own about 20+ cannabis stocks. I have been invested in them for a total of two years. Most of the popular ones and several Penny stocks. Some are profitable, MOST are not! Companies like
    Auxley, Acreage, Planet 13, Players Club, Flower One, Cann Trust, Green Gro, Terra Tech, Massroots, and 15 more like these. HOW LONG do I hold on to see a good return???
    Thought by now they would be doing great!!

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