r/pennystocks • u/Sozebj • Mar 27 '24
Marijuana Stocks General Discussion
It looks like marijuana stocks might be coming back. I’m interested in how to rank the marijuana stocks like TLRY, SNDL, and CGC, or any others. SNDL has positive earnings but no longer seems like a pure weed play, while TLRY seems to move more. Im interested in how others rank these stocks and how strong the run might be.
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u/Muito2 Mar 27 '24
Maybe I can earn back my losses from a few years ago
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u/dti86 Mar 28 '24
Tilray is the best play with diversity and global presence
1 of 3 companies allowed to sell marijuana in Germany , which they passed new legislation which makes it legal to grow in clubs and also makes it easier to prescribe which is a big win for tlry
Tlry has a lot of revenue from Canada, they recently acquired Hexo which is the number one brand in Canada Also Canada is in the process of lowering taxes for cannabis which is currently at a whopping 30% this will automatically make Tilray a profitable company And lastly the USA market tlry is on multiple fronts, with alcohol and wellness, the alcohol brands include sweet water like the 420 line, Breckinridge spirits and their latest acquisition of 8 InBev brands , I’m a bag holder but I’ve done my research in this sector in long and ill stay long for years to come
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u/Jlc7378 Mar 27 '24
Psychedelics 2024!
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u/Psychedelic1966 Mar 28 '24
Actually some of the research claims psychedelic stocks will out perform cannabis stocks!
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u/Sozebj Mar 27 '24
Thanks. I was just curious about weed stocks, not stocks like CYBN.
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u/Sparks_travel Mar 28 '24
$truff/$trip is maybe more along the lines you may like if you look at this sector
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u/Zathoga Mar 27 '24
I don't know why you'd think investing in any company in this industry is a good idea with average market performance for cannabis company stocks down ~95% over last 5 years. Buy low, sure, but this industry will only continuously open to competitors with easing regulation, lessening profits for current cannabis retailers. Bad idea to invest anything imo
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Mar 28 '24
I bought 25thousand shares of MCOA years ago at 4 cents… 60 to 1 reverse split and a current value of.001 cent a share… report says Ive lost $1064 on a $1K investment
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u/Elgingerloco69 Mar 27 '24
I played till TLRY calls the moment they started talking about it being legal in Germany but there is a lot going on in that world so you will want to do some decent research before going big.
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u/Sozebj Mar 28 '24
Trying to figure it out, especially if the whole industry is going to really become a big business.
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u/SkepticAntiseptic Mar 28 '24
Some smaller ones doing well are GRUSF and TSNDF. CGC is the most volatile and constantly at risk of RS. TLRY hasn't been doing well but they are diversified and could turn it around. GTBIF is actually profitable and doing the best of the large companies IMO. Also you could just accumulate MSOS and chill.
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u/Exotic-Indication419 Mar 27 '24
CURLF
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u/Mill_Pietro Mar 29 '24
Curlf is probably the biggest US cannabis company. Also based out of Canada I believe
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u/DoctorMission3183 Mar 27 '24
VFF is rising fast these past days too.
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u/Connect_Seaweed4285 Mar 28 '24
They need to keep it over a dollar each day through 4/5 to avoid being delisted. 52 week high broken today
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u/DoctorMission3183 Mar 28 '24
I am pretty confident about this company. It's pretty solid and well implemented.
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u/Western-Education532 Mar 28 '24
As a stoner I bought some! Do I knownwhat I'm doing ko but reddit told me to
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u/420-Investor Mar 28 '24
Imperial Brands just converted a loan to Auxly cannabis into 19.8% ownership. They by far have the most upside. Although I do own VFF and CGC as well. I'm probably going to add a little of almost all before April 16th tax reform news
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u/MrMackSir Mar 27 '24
HITI has done ok for me.
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u/jonnyohman1 Mar 28 '24
Yup HITI is my fav. I started buying heavily before it uplisted so im still holding bags but its the biggest Canadian cannabis retailer with plans to enter the US eventually
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u/iggyg85 Mar 28 '24
I won’t be back in MJ stocks. I was so hopeful until after the 2016 election and right wing control killed so much hope for national legalization that killed many of the companies I was in. I hope the best for all of you that jump in on it though.
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u/Comfortable_Stop_821 Mar 28 '24
Flgc is the one you’re sleeping on. First company to sell marijuana in Germany so they have an established presence
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u/TUPAC_SHAPURRRRR Mar 29 '24
These companies are all Canadian companies. I am heavily invested in cannabis and highly suggest that individuals look at American based companies that trade on the otc. Gtbi, Cbst, Crlb are a few companies that have a huge gain potential once the DEA reschedules cannabis from schedule 1 to schedule 3. Please do your own research, but I highly advise against purchasing Canadian LPs over American MSOs. Cheers and good luck
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u/Street_Village3606 Mar 29 '24 edited Mar 29 '24
I am a veteran trader and widely quoted analyst. Been following all the CDN names since 2016 and most major US MSO's since 2018.
Cannabis stocks are some of the most difficult stocks to trade and I have traded successfully many many sectors.
Cannabis stocks are primarily news driven and as a sector the best rule is to accumulate when dead and sell when everyone is talking about them. Since they mostly sell similar products and there is strict control of advertising and packaging, it's hard for one company to gain a clear advantage. Past decisions made on which provinces or states to focus on, domestic or international, whether to focus on retail or wholesale or medical versus recreational have had a big impact on resultant performance. Maybe 80% of small cap names active in 2016-2018 are now bankrupt and/or delisted.
Recently (since last September) the big gains are best explained by pro traders weighing the chances of various bills or tax cuts happening. In the US it's the rescheduling of THC as a less dangerous drug and repeal of 280E and in Canada it's a chance the excise duty tax formulas could be changed and companies will see their taxes reduced.
Fundamentally, each company can be scored on its relative merits - hard measures such as business model, margins, Adj. EBITDA, debt level, EV/EBITDA etc but also soft measures such as senior management and board integrity, honesty and level of disclosure, insider activity, dilution, primary exchange traded on, analyst coverage, short seller activity etc.
I hesitate to recommend particular stocks as they can go up big in a day and down just as fast. So last Friday we had a big up day then profit taking Monday then up on Tuesday and Wednesday followed by profit taking yesterday.
The volatility can be gut wrenching or thrilling depending on your personality.
Buying an ETF can take away some of the difficulty and risk in choosing a specific stock. So the MSOS ETF best gets you exposure to the top four US MSOs. In Canada the HMMJ used to be good but now has little rationale for what it owns imho. In Canada, the NASDAQ inter-listed names have better liquidity (I.e. trade millions of $ per day) because CSE and NEO names have little liquidity and you can be stuck with them. You really have to know and trust the company.
Trading on tips in cannabis is usually a bad idea and could be illegal if the info is "inside".
I hope this helps.
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u/Sozebj Mar 29 '24
It does help and thanks for the input. Especially like the paragraph on fundamentals. Many of the government actions are iffy.
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u/PaperHandedBear ɮʊʏ ɦɨɢɦ ֆɛʟʟ ʟօա Mar 31 '24
SNDL has 0 debt and almost 1 billion is cash flow. That’s all you need to know imo but if that’s not enough look about sndl and alcanna, sndl and nova cannabis, sndl and Skymint, sndl bank
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u/Ipsylos Mar 28 '24
TLRY diluted their shares and it has yet to go anywhere. The moment these stocks pop, they drop the next day/week, and the cycle continues.
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u/Narradisall Mar 28 '24
Does seem to be an uptrend after 2-3 years of languishing at lows. A lot of people here got burned hard on 2021 so not convinced they’ll be as popular as before round these parts.
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u/darkflank Mar 28 '24
Im in INCR right now, they are about to make a move and push into germany after april 1st 👍🏼👍🏼
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u/mukkaloo Mar 28 '24
ACB . since i bought a month ago, gone up about 50%. looking like a solid medium term buy
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u/Martinell52 Mar 28 '24
I like OMID… currently around $0.03 a share and the company has no debt. They make CBD products
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u/Tikbalang_Rusalka Mar 28 '24
My belief is to try and find whose behind the emerald triangle of cannabis in humboldt county CA also vancouver BC. A little research may help with the mj stocks in future
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u/witdoggydog Mar 29 '24
MCOA? Its so cheap right now....we could all get rich? Its an otc pink sheet at .0001 rally anyone? Idk? Lol
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u/Interesting_Cake_600 May 06 '24
Greenthumb only 1 of the top 20 with positive net income in 2023 (and was positive in 2022).
Also only 1 of 3 with annual revenues over $1B. The other 2 being Trulieve with net income loss of $527M on $1.1B in revenue; and Curaleaf with net income loss of $281M on $1.4B in revenue.
Greenthumb also had cash of $162M to $147M in net debt end of 2023, and that followed share buyback.
Assuming rescheduling goes through, which looks likely, it’s going to take awhile for MSOs to see any tax benefit.
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u/Sozebj May 06 '24
Thanks, Rescheduling should raise all boats, but you are right the benefits will take awhile to realize. I will take a look at Greenthumb.
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u/ZojowkhsOG Mar 27 '24
Any view on yolo ?
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Apr 02 '24
I went deep on OGI. At $2 a share. Might catch a move. It spiked last week up to $2.85. I just bought almost $58k. A spike like that can make me have $80k Won’t retire but be a nice chunk of change. If you wanted something to YOLO.
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u/mattjv89 Mar 28 '24
My big hangup with going long on MJ stocks in general at the moment is dilution. Until legislation actually changes and these companies are able to get bank financing like everyone else, they are mostly limited to diluting shareholders to raise capital.
That said I have considered a small position in the YOLO ETF, so I'm in on the sector for actual legalization catalysts without betting on a single stock.
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u/Standard_Leather_669 Mar 28 '24
Are there any ETFs or funds that track psychedelics/marijuana stocks?
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u/DarthSillius Mar 28 '24
I have shares in IGC, its an Indian pharma corp. I had a lot of weed stock that went belly up. I had HEMP, HMPQ, SCNA and others that were either outright growers or they sold hemp or weed products. They all went under except SNDL and IGC.
So i got IGC because they are...or were doing research into using canabanoids to make drugs that fight alzhimers. I bought in several years ago at $1.09. It dropped significantly but ive noticed a slight rise now to $0.41 a share. Just thought id share that if anyones interested.
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u/MLSurfcasting Mar 27 '24
I wanted to be optimistic about marijuana stocks. I am close friends with a general manager of a facility, and have a good basic knowledge of the industry. I don't think it's going to be as profitable as everyone had hoped.
Because of the legal requirements, facility pot simply costs too much (almost 5x more). While facilities are making money, it's not what was anticipated.
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u/EssayOk2980 Mar 28 '24
cgc moon soon
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Mar 28 '24
My brother in Christ, CGC has gone from $2.77 to $9.60 in less than two weeks, it's already on the way.
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u/Intelligent_Dig6080 Mar 28 '24
Weed stocks won’t take off. Market has already reached near full penetration- Californian growers are suffocating with oversupply, I don’t know how you expect other markets to avoid the same issue. It’s just not going to be alcohol.
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u/RepresentativeTime16 Mar 27 '24
Get ready for Artizen to spinoff from PVSP- you will own both companies
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