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Right now, we're in the thick of earnings season – and the lucrative U.S. cannabis industry is right there, too; hundreds of firms across the country are releasing their financial results for Q4 2018.
Now, typically, investors lean on these earnings reports to gain insight into how well a company is run or if it's performing well.
And for the most part, I agree it's a great tool…
… if you know what to look for.
Frankly, companies know that investors look to these reports to make decisions. So you can bet they are going to present the rosiest possible picture of their financials.
The key is knowing how to look beyond all the smoke and sunshine they're throwing at you to determine whether the company is worth your hard-earned investment dollars.
That's why today, I'm going to share the "magic formula" I use when looking through every single cannabis earnings report.
And just to make it really easy, I'm going to boil it down to three things you should look for – and three things you should always ignore…
About the Author
Greg Miller started working on Wall Street in September, 1987, just a month before the “Black Monday” stock market crash.
During his career there, he became an expert in just about every kind of publicly traded security - from blue-chip and small-cap stocks to municipals, junk bonds, and derivatives. As a portfolio manager, Greg was responsible for over $500 million of assets in mutual funds and insurance company accounts.
After leaving the Street, he designed a successful options trading strategy and made lucrative tech investments for a financial publication. He has also helped develop new products and worked with other editors to hone their strategies. He’s always been dedicated to deep, fundamental research - and he always will be - because he believes buying the very best companies at the right price is the best way to amass wealth in the stock market.
Very informative.