One popular cannabis stock you shouldn’t touch with a 10-foot pole, plus two winners to replace it with…
When thinking about the first movers in cannabis, this Canadian licensed producer (LP) tops the list.
It was one of the first publicly traded cannabis companies to ever launch and made a massive splash in 2018 as the first Canadian cannabis company to list on the Nasdaq.
And after a massive $1.8 billion investment from tobacco giant Altria Group Inc. (NYSE: MO), this company had all the money it needed and more to expand as much as possible – which it did…
But in all the wrong ways.
The company used that cash and stock to buy companies in which its executives had a personal interest at the expense of its shareholders. So much so that the Securities and Exchange Commission (SEC) opened up an inquiry into its financials last March.
Its shareholders filed a class-action lawsuit soon after, and this once-promising company got caught red-handed, inflating its revenue numbers to make it seem like its financial results were stronger than they actually were.
But even after being massively irresponsible with its capital and betraying the trust of its investors, you can still find this company on Robinhood‘s Top 100 list of most popular stocks.
Fortunately, you have the National Institute for Cannabis Investors (NICI) in your corner to make sure you don’t fall into the same trap as those Robinhood investors.
Your Sell of the Week: CRON
The company I’m talking about is Cronos Group Inc. (Nasdaq: CRON).
While this first-mover might seem like a popular stock pick on the surface, it’s actually one that could be toxic to your portfolio.
Even as CRON shares have fallen from over $15 in February to $7 as of this writing, its stock is still way overvalued. And the one thing it had going for it – its billion-dollar cash position – is quickly eroding.
In short, you’re more likely to lose money than make it with Cronos in your portfolio.
There are plenty of other opportunities out there for you to profit from cannabis, and I don’t want to leave you with a “sell” without also sharing a “buy” to boost your profits.
Another winning pick is Jushi Holdings Inc. (OTC: JUSHF). This up-and-comer has doubled its retail footprint over the past year and keeps growing revenues at an astonishing rate.
Just yesterday, Jushi pre-announced a 220% year-over-year (YoY) increase in revenue for the second quarter at $47.7 million. And it’s made shareholders a lot of money over the past year. Our NICI Membership subscribers are up over 215% on their initial position and there’s plenty more still to come.
For even more stock recommendations with the potential to make you massive returns over the next 8 months, you can check out the 20 tech stocks on my colleague Michael Robinson‘s “buy” list right here.
To your investing success,
Partner, RADD Capital
2 responses to “Sell of the Week (August 4): This First-Mover in Cannabis Has Cash to Burn – But in All the Wrong Ways”
August 04 2021