The Aphria stock price had a big rally after earnings, and it shows the market wants to see a rebound…

In the last few months, we’ve seen some scandals in the cannabis industry that have pushed prices down.

However, I know cannabis stocks want to rally, and there was clear evidence for that when Aphria Inc. (NYSE: APHA) recently reported its earnings.

On August 1, the Aphria stock price opened at $5.35 per share. After the company reported earnings, it jumped to an intra-day high of $7.45 on August 2. That’s a nice 39% pop in just one day.

The company increased its overall net cannabis revenue by 85%, which is a big deal.

However, as I mentioned in a report about Aphria, there were some important lessons from this earnings report that weren’t being talked about.

There’s a slew of companies ready to report earnings and while we know not all of them are in our model portfolios, we know our members own companies that will release financial results over the next few weeks.

Today, we wanted to make sure you had a list of what companies are going to report earnings and when they are expected to do so.

But I also wanted to make sure you know the biggest red flags to watch out for to make sure that the companies you own deserve your hard-earned money…

What to Know About Earnings Reports

In an earnings report, some companies will emphasize certain aspects of its business, while leaving others untouched. This practice embellishes high-performance areas and distracts you from what’s really going on.

Now, to help you filter out what’s important and what is just slapping a fresh coat of paint on a barn that is about to fall down, I compiled a list of some of the biggest red flags when it comes to earnings reports.

Cannabis Red Flags

  • Late Filings

A late filing reflects management’s inability to maintain and track its own performance.

  • Revenue Manipulation

Revenue is vulnerable to misrepresentation. Some companies will report revenue before it is actually earned, or simply make up income that is not there. Something else to watch is sales that are complicit to related parties – like a sister or subsidiary – that don’t actually go through.

  • Inventory Manipulation

This is a gain/loss, but on biological assets for cannabis plants, this is tricky.

  • Pending Class-Action Lawsuits

These can significantly impact share price upon a win or a loss.

Cannabis Earnings Reports in August

You could see at least 12 opportunities to make 10X your money in the next 12 months using this method. Find out how here.

Now that you’re even more prepared for earnings season, I wanted to give you a list of some of the biggest reports coming out for the rest of August.

If you own any of them, I want to make sure you know when they are set to release their financials.

We know this is a lot to keep track of, which is why many of our members are utilizing our NICILytics stock rating system.

Not only do we provide a rating for over 200 companies, our analyst reports are derived straight from the company’s financial statements on a consistent reporting basis.

We help you from being overwhelmed by the amount of investing choices out there by focusing on the best long-term cannabis plays with our easy rating system.

As always, Lifetime Members can access our stock ratings right here.

If you don’t already have access to our one-of-a-kind database, you can learn how to get immediate access here.

Greg Miller
Executive Director, National Institute for Cannabis Investors

P.S. With CBD usage on the rise, mainstream retailers are scrambling to keep up with the industry. Chains such as CVS, Walgreen’s, and Walmart are all beginning to sell CBD products in response to massive consumer demand. In fact, our experts predict for hemp CBD demand to skyrocket to $646 million in the next four years… Just to put that in perspective, in the same time frame, the demand for personal care items is predicted to be at only $259 million. This could be an opportunity of a lifetime – a chance to lock in a ground-floor shot in a brand-new industry. So if you’re ready to get involved, you can find more details here.


Comments

9 responses to “Recreational Sales Are Helping Fuel Massive Growth”

  1. I would like to talk to someone to better understand the services that are available. While I enjoy what I read, at this point my subscription to this has cost me money. As you can’t own everything, the companies I’ve bought that are on your holdings, are all down at this point. I do know all can’t be winners but I haven’t had one, and almost everything you send me is trying to sell me something else to put me further in the red

    • I agree with Leckie Mattox comments – except I do have a couple of stocks that are still up– I PURCHASED MOST OF THE STOCKS YOU RECOMMNEDED

    • I Agree. I’m not making any money on the stocks you have recommended but everyday you encourage me to buy more of your products.

  2. Morning Greg how are you? This is very useful and helpful information thank you. Now that we are in the middle of the summer hopefully we will get results that will impact our model portfolio share prices in a positive way!!! I hope you have a great day and much success to all of us in the future!!!!

  3. Sandra from FL, Thank you but what do we do with this info, is it better to buy more before the report comes out because the price might be lower.

  4. I have interest in especially purchasing CBD stocks, get somewhat stressed by these urgent emails to buy stocks in next few days or lose out. This happened when a group of companies were going public just before Labor Day weekend. I shared info with my financial counselor and he said to relax and not make a sudden decision, to Enjoy my holiday weekend, which I was traveling at the time to Yellowstone NP! Is there anyway to get information in advance to I can prepare? I’m excited to get into the market?

    Thank you

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