Marijuana news keeps coming and the stocks keep rising….
Yesterday, Canadian marijuana company Tilray, which had its IPO in July, announced that it will acquire Manitoba Harvest, the world’s largest hemp food company, for $317 million.
Manitoba Harvest has a portfolio of products sold in more than 16,000 stores in the U.S. and Canada. The acquisition allows Tilray to enter the CBD natural foods category and take advantage of Manitoba’s expertise in working with cannabinoids. Tilray also will be able to use Manitoba’s distribution network and sell its own in-house CBD products.
Tilray is the poster-child for why getting in on stocks early is key to getting the biggest gains. In the weeks following its IPO, Tilray traded in the mid-20s. The Canadian company hasn’t traded lower than $65 in months.
After yesterday’s news, the stock was trading at a little over $81 a share.
For investors looking for big gains, the chance to make 4-times, or 10-times, or 100-times your investment, investing in a stock before it becomes mainstream is incredibly important.
That’s what Matt McCall believes, and it is the focus of his Investment Opportunities service. Matt aims to get his subscribers in today’s small stocks before everyone else so that they can achieve the biggest gains.
One of Matt’s calls recently passed the double mark (and is still climbing)….and, it’s a marijuana stock.
Investing in new companies, especially just after the IPO, is a risky business. The danger is doubled when you’re betting on a stock in a developing industry when so many are trying to establish a presence.
That’s why Matt spends so much time evaluating companies, and only recommending the ones with solid sales, good management and a real business plan.
Khiron Life Sciences is a microcap stock that went public in June last year, and that Matt recommended that his subscribers buy in September. Below is the Khiron chart since Matt recommended it.
In his recommendation last year, Matt described why this stock met his criteria for an investment worth getting into early.
In addition to being the first fully-licensed medical cannabis producer in Colombia, the company was also the first to receive approval from INVIMA, Colombia’s version of the FDA, for CBD cosmeceuticals. A cosmeceutical is a cosmetic with medicinal properties. The main ingredient in the products is CBD, which as we talked about has been scientifically proven to help with a variety of ailments ranging from pain to anxiety to seizures.
The products will be for men and women and sales are planned to begin during the fourth quarter of 2018. There’s a huge beauty and personal care market here – $4.3 billion in Colombia and nearly $60 billion for all of Latin America. The niche skincare market in Colombia is a $410 million business annually.
When investing in an IPO the management driving the company is very important. Khiron has impressive people and in the right mixture to achieve its goals. CEO Alvaro Torres was educated in the United States before starting his career in Latin America. He has been part of a startup in the past and helped grow it to the point where it had over 2,000 employees. I also like his ties to Latin America, as it always helps to have someone with a local background.
Recently, the company made news with the acquisition of NettaGrowth International, which gives it entrance to the medical marijuana market in Uruguay.
Matt has selected three stocks as part of his Cannabis Cash Calendar, and has scheduled another for April 4. Click here to learn more about how Matt picks which IPOs to follow and how you can get his latest pick.
Meanwhile, one our adviser’s utility stock recommendations hit a 52-week high.
I’ve written before about utility stocks and their potential as growth stocks.
Neil George, editor of Profitable Investing, specializes in just these kind of stock picks — a dividend stock that also generates growth for investors.
Below is an updated version of a chart I placed in the Digest one month ago showing how US utility stocks, as tracked by the Utilities Select Sector SPDR Fund (XLU), have outperformed the S&P 500 Index over the trailing 12 months.
Although utilities are generally thought of as boring, secure stock plays, one company has broken out of that mold.
NextEra Energy has placed itself at the forefront of new energy trends and has broken out of the boring utility stocks mold.
Florida-based NextEra owns the regulated power company Florida Power & Light, and generates power through natural gas, coal and oil as well as nuclear power plants. It has millions of residential and commercial customers, but it also has an unregulated side of the business.
NextEra Energy Resources (NEER) provides unregulated wholesale power around the U.S. with some additional assets in Canada and Spain. NEER is more focused on the next era of energy generation, such as wind and solar, and is an increasing part of NEE’s revenue.
Below is a chart of the last 52-weeks.
Here is Neil’s latest Profitable Investing update about NEE stock.
NextEra operates regulated utility services in the ever-expanding market in Florida. It has also rapidly expanded its renewable energy projects in the unregulated markets around North America, where it is now one of the largest producers of renewable energy.
It has been a great performer since it was added to the portfolio [in 2008], generating a total return of 365.68% for an average annual equivalent return of 15.85%. It pays a strong dividend of $1.25 per share that was just raised this month for a yield of 2.69%. NEE remains one of my prime utilities to buy in a tax-free account below a raised buy-under price of $187.00.
We all know that investing can be a tricky business. Investing in early stage trends and dividend utilities can seem like opposing approaches to building wealth. But good investors keep their minds open for new opportunities wherever they appear.
Matt McCall and Neil George demonstrate how that can work for every investor.
To a richer life…
Luis Hernandez, Managing Editor
and the research team at InvestorPlace.com