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trading strategies

Trading Strategies

This Blue-Chip Firm Is Showing Us the "Fast Lane" to Cannabis Billions

By , Director of Cannabis Investing Research, Money Morning - • Print | Email

The cannabis market is starting to soar.

The United States is a huge market opportunity, with market projections growing from an estimated $8.5 billion last year to $23.4 billion in 2022, if only a few additional states legalize recreational use. And we're talking about as much as $50 billion if most states follow the trend.

But the biggest opportunity of all could come in a form people hadn't been talking about as much…

It's an opportunity that runs counter to the recreational market trend and the obsession with the cannabinoid THC – the one that causes users to get "high." 

I'm talking about some of the other highly prized cannabinoids present in marijuana - one in particular that one of the world's biggest, most well-known companies has taken a sudden interest in...

Trading Strategies

Why 398% Profits Are Just the Start for This "World-Beating" Pot Stock

By , Defense + Tech Specialist, Money Morning • @Robinson_STI - • Print | Email

There are many recipes for a soaring stock price.

Here's one I like a lot…

1. A company that taps into previously prohibited yet well-established markets

2. Excellent leadership skills

3. A killer execution strategy

And that's precisely what we've been seeing with a firm I mentioned most recently back in mid-July.

At that time, I told you how this company became the world's first seed-to-sale cannabis outfit ever to make its initial public offering on a major U.S. stock exchange.

During its IPO, the company raised about $164 million, which it's plowing directly into building out its cannabis cultivation and processing capacity, among other projects.

And it just secured an important new "gig" that sent its shares soaring as high as 32% yesterday… Full Story

And it just secured an important new "gig" that sent its shares soaring as high as 32% yesterday...

Trading Strategies

What "Other People's Money" Can Tell Us About Ours

By , Technical Trading Specialist, Money Morning • @DRBarton_Stocks - • Print | Email

No matter how bullish they may be, every investor must come to terms with the fact that this bull market, the longest in postwar history, is well over nine and a half years old now.

For that reason alone, it's important that we continue to look objectively at potential signals out there that might indicate the market becoming overextended to the upside.

Now, if you've been with us a while, it won't surprise you at all to learn that I look at thousands of charts each week. So, when a graphic hits my screen that I think is particularly useful, I like to pass it on.

I've found some charts that give us a top-down, "30,000-foot" view of the margin debt in play on the U.S. stock markets.

Margin debt is just money that is borrowed to buy stocks; most retail accounts can borrow 100% of their account balance to buy additional stock – at fairly low interest rates, too.

So why are we peeking at other people's money?

Well, analysts use margin debt as one measure of market participants' risk appetite. That "zest" for risk – or aversion to it, as the case may be – is a pretty good indicator of how much buying or selling you can reasonably expect in the short term.

Because it's important, margin levels are a never-ending grist for the article mill. In fact, you may have read some articles worrying about the fact that margin debt is at all-time absolute highs.

They're right about one thing: Margin is at all-time absolute highs, so let's dive in and look at what the charts have to show us...

Trading Strategies

Cash Runs to Quality in This Growing $1.5 Billion Cannabis Niche

By , Director of Cannabis Investing Research, Money Morning - • Print | Email

Every investor should understand how the market for cannabis is developing – now and over the coming weeks, months, and years.

Choosing the companies best positioned to profit in the emerging market helps you gain an edge over those who simply "throw darts at a list of stocks" and pick cannabis companies without regard to industry realities.

But as legalization becomes more widespread throughout the United States and across the whole of Canada, investors still face questions about what the realities of a mature cannabis market might be.

For some answers, we can look at Colorado – the first U.S. state to make recreational cannabis easily available.

That made some realities evident.

We know, for example, that in places where vaporizing (aka "vaping") cannabis concentrate is legal, that form quickly takes over a significant part of the market.

Vaporizable concentrates are a value-added product, but they're also fairly commoditized, meaning customers shop by product attributes, such as how rigorously it's been tested, say, or the ratio of THC to CBD, as opposed to shopping by brand.

The traditional marijuana bud, or "flower," market, which in Canada is worth about $1.5 billion today, is still fragmented. Customers there are still experimenting with different strains, different growers and brands, and different cannabinoids and THC to CBD ratios. In other words, there are a lot of questions.

One big question facing the market – both in Colorado and worldwide – is whether consumers are willing to pay up for "super-premium" cannabis. That is, cannabis that is more expensive to produce… but that generates a better smoking experience.

There are many producers claiming to grow such cannabis – that's why it's such a big question. After all, no one is going to advertise that they make the lowest-end cannabis on the market any more than Busch admits that its beer is lower-end than a craft brewer's.

So how can an investor tell when a company is really producing super-premium cannabis… or merely claiming to grow it?

That's a very important question because, naturally, the investment case for the genuine super-premium product tends to be much stronger than it might be for the pretenders.

One company last week gave us the answer, loud and clear...