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Altria Group

Trading Strategies

Why "Mellow Marijuana" Has CEOs Quaking in Their Boots

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At the National Institute for Cannabis Investors, we talk a lot about how the rapidly expanding legal cannabis market will disrupt many long-established industries.

It's already underway – like the Big Pharma player I mentioned the other day, where they're terrified of a simple hemp extract.

Tobacco companies know their traditional market is declining rapidly and they must find aggressive sources of growth.

We saw this play out when Altria Group Inc. announced its intent to invest $1.8 billion in Canadian cannabis company Cronos Group Inc. And that $1.8 billion was just a start.
Altria stands prepared to toss in another $1.1 billion if everything goes as planned. (Given the excellent leadership at Cronos, it will.)

Elsewhere, alcoholic beverage companies Molson Coors Canada and giant Constellation Brands Inc. have also both committed to cannabis – the latter making a $4 billion commitment to cannabis cultivation behemoth Canopy Growth Corp. Sales growth for alcohol is way down, and these companies are all too cognizant of the fact that cannabis legalization threatens their sales even more.

And based on some brand-new data that my team at the Institute just reviewed, these industry players have even more reason to pour truckloads of cash into cannabis companies.

Here's what's causing the panic...

Trading Strategies

The Aphria Bear Raid Is a Gift in Disguise for Weed Investors

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In a blistering month for stocks, Aphria has had a particularly bumpy ride.

The Leamington, Canada-based cannabis company was the target of some explosive (and, as we'll see, spurious) allegations from, as it turns out, a firm with substantial short interest. This is a common enough occurrence in the stock market, as Carl Icahn and Bill Ackman's legendary "long vs. short" battle royale over Herbalife Nutrition illustrates. 

The short-seller's allegations focus only on Aphria and one other, small company: Toronto, Ont.-based SOL Global Investments. They have nothing to do with other cannabis firms we follow at the National Institute for Cannabis Investors

But, since the short attack and furious price action last week, I wanted everyone to know what's really happening with Aphria.

It's the truth you won't hear anywhere else - and, even better, a beautifully wrapped-up December buying opportunity... Full Story

Marijuana Industry

The Marlboro Man of Marijuana Could Be... the Marlboro Man

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Earlier this morning, Canadian cannabis firm Cronos Group Inc. (Nasdaq:CRON). was up an astounding 25% in mere hours.

At open this morning, Cronos was trading around $9.25. By noon, it has reached $11.63.

So why the sudden pop?

Well, the rumor mill has been swirling lately, and sources say that Altria Group Inc. (NYSE:MO), maker of Marlboro cigarettes, is looking to make a deal to buy Cronos.

This deal, if real, is still in the very early stages, would make Altria a major legal cannabis player.

Hence, Cronos stock's incredible 25% pop in only a few hours. Of course, it didn't stay at this high – but it's certainly still up, by about 15%.

This rally isn't unheard of, especially in the marijuana sector. When Aurora Cannabis (NYSE:ACB) was rumored to have struck a deal with The Coca-Cola Co. (NYSE:KO), prices for Aurora jumped nearly 29%.

And when Canopy Growth Corp. (NYSE:CGC) signed a $3.8 million contract with Constellation Brands Inc. (NYSE:STZ), Canopy surged 19% in one day, then exploded another 30%, and brought other pot stocks with it.

So, we know that buyout rumors these stocks skyrocketing – and that's just one more reason to own them.

Altria has expressed interest in the cannabis market before – in fact, much before it was legal, even medically, in any state. In a memo sent in 1970, Altria execs recognized marijuana as an "alternate, perhaps a superior, method of satisfying the needs that cigarette smoking satisfies."

More recently, in 2016, Altria invested $20 million into Syqe Medical Ltd., an Israel-based company that produced 3D-printed cannabis inhalers.

Of course, this was after they announced that the company had "no plans to sell marijuana products."

Altria has also taken an interest in Juul, a tobacco company that makes e-cigarettes. There is nothing to say that these deals are or aren't connected – Altria has refused to comment.

We do know that cannabis and e-cigarette companies are growing rapidly. Counting both legal and black-market sales, the cannabis market has hit approximately $52.5 billion, according to Marijuana Business Daily. The e-cigarette market is projected to hit $6.6. billion, according to Wells Fargo, partly in thanks to the rising popularity of Juul's products.

So it's no surprise that Altria is looking to get into these markets. Since the 1970s, the tobacco industry's bottom line has been hit hard by public health laws and anti-tobacco campaigns. The laws restrict and heavily tax cigarette use, and campaigns such as D.A.R.E. have been introduced in schools to educate students on the dangers of cigarettes.

As a result, the industry's stocks have fallen precipitously. Altria specifically is down more than 20% in 2018 alone. However, with the rumors of Juul and now Cronos, Altria's stock has rallied about 5% in the past week.

Cronos, Aurora, and Canopy are only three of the pot stocks that have made waves recently. There are so many players on the field, so to speak, that it can be hard to make a sound investment.

That's why we've put all the information in one place. At the National Institute of Cannabis Investing (NICI), we've gathered a handful of cannabis investing experts to give you the best advice on everything cannabis. Even former Speaker of the House John Boehner is getting in on the "green rush" cannabis is creating!

I am personally on the advisory board, which means I have the inside scoop to share with my readers. You can click here to access the rebroadcasting of NICI's first-of-its-kind conference.

So, we know that buyout rumors send these stocks skyrocketing – and that's just one more reason to own them...

Dow Jones

Dow Jones Industrial Average Slides 100 Points as White House Dashes Trade War Resolution

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The Dow Jones Industrial Average fell 100 points on Tuesday after the White House issued a clarification on the short-term economic truce between the United States and China.

Yesterday, the Trump Administration appointed veteran trade negotiator Robert Lighthizer to headline future trade negotiations with China - a notorious Chinese hardliner who analysts believe may undermine additional progress with the Chinese.

Trading Strategies

This Is the Single Worst Mistake You Can Make in Today's Markets

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Many investors are convinced that the bull market is over, and there's nothing worth buying at the moment. Worse, they're selling out and heading for the sidelines using even the slightest market drop as justification for their actions.

I can't think of a worse mistake.

There are all kinds of ways to hedge volatility these days. No investor need fear a bear market – let alone suffer the ravages of getting financially mauled.

You can run flat or down markets to your advantage if you are properly prepared, have the right perspective, and have a firm grasp on the right Total Wealth Tactics.

So far we've talked about specific Total Wealth Tactics like LowBall Orders, which you can use to buy the stock you want at exactly the price you're prepared to pay – ideally at a huge discount. We've also covered Position Sizing as a means of limiting risk before you place a trade, Trailing Stops to protect your capital once you're "in," and Free Trades to help you maximize profits when it's time to sell.

Today, I want to introduce a new wrinkle.

I want to show you how to buy more stock without spending more money...

Dow Jones

Dow Jones News Today: Stocks Rise as Trump's Overseas Trip Wraps Up

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The Dow Jones news today will focus on President Trump's first overseas trip, the London terror attacks, and a new cost estimate for the Republican's healthcare bill.

Investors are also waiting for the Federal Reserve to release minutes from the last FOMC Meeting, which could shed light on more interest rate hikes this year.

Here's a look at today's most important market events and stocks, plus a look at today's economic calendar...

Stocks

The Secret to Superior Returns

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Many people are surprised to learn that dividend income and reinvestment can account for nearly 90% of total stock market returns over time.

That's right. Not a quarter… Not half… But 90%.

That's why placing a high priority on dividends in the Money Map Report's proprietary 50-40-10 Strategy is paramount to its success.

Unfortunately, this goes counter to the inclinations of far too many investors. They spend the bulk of their time chasing "the next hot stock" or searching for the next "sure thing."

No doubt we all love the elation that goes with being up 25%, 50%, 100%, or more.

Don't get me wrong, though. I'll take gains like that too – and we get more than our fair share in the Money Map Report model portfolio.

Yet, when it comes to consistently growing and protecting our money, I'd rather focus on getting the cold, hard cash that dividends kick off. That's because I know those are a much bigger component of overall investment returns over time.

I point this out because what most people fail to realize is that successful investing is a matter of continuous performance – not instantaneous performance.

Here's where it gets really interesting...