How to Know When to Buy Marijuana Stocks

The big gains are made over time...but you've got to know the right moment to pull the trigger

A company that jumps to a major stock exchange is the “rocket ship” event of marijuana stocks. It can send shares soaring to a whole new level — into the stratosphere.

This is what my research identifies. Companies in prime position for takeoff… but still before they blast off. The best way to show you what I’m talking about is to give you an example.

There’s a particular chart that marijuana execs are obsessed with right now — and I can’t blame them:

Marijuana Stocks: CRON

Cronos Group (NASDAQ:CRON) soared nearly 10,000% in less than three years. It’s significant because it was the first of the Canadian cannabis stocks to make the leap to a major U.S. stock exchange. It began trading on the NASDAQ in February 2018.

But let’s go back to December 27, 2017 — prior to the company announcing it had filed to list on the NASDAQ. It was trading on the smaller OTC market under the symbol PRMCF.

In a newsletter I was writing at the time, I recommended Cronos when it was trading at $5.50 per share on the OTC exchange. Given our short-term trading strategy, we sold the stock in just 48 hours — and locked in a nearly 50% profit!

Pretty good for a couple day’s work.

It was a fantastic short-term win, but now let’s look at Cronos with the longer-term strategy I employ today. In a monster trend like what marijuana stocks are enjoying, we want to hold for the huge profits that can go along with it.

On February 27, 2018, Cronos jumped to the NASDAQ and made history as the first Canadian marijuana company to list on a major U.S. exchange. The stock closed the Friday before the announcement at $7.01. One week after the announcement, it traded as high as $10.39 — a rally of nearly 50%.

Almost three months later on May 23, 2018, Cronos made another jump within Canada when it moved from the TSX Venture Exchange to the major Toronto Stock Exchange (TSX). Two weeks later, the stock was up 28%. (Note: Most Canadian marijuana stocks begin their public lives on the TSX Venture Exchange. The jump to the TSX is the equivalent of uplisting from the OTC to the NYSE in the United States.)

Marijuana Stocks: CRON

As you can see in the chart above, both jumps resulted in big short-term profits. But you can make a lot more money by holding on for the longer-term surge that begins with the jump.

Things change in the blink of an eye when tiny cannabis stocks go from having 30 million people following them in Canada to more than 300 million in the United States. Wall Street banks like Morgan Stanley and TD Ameritrade poured over $200 million in Cronos.

What happened next was a chain reaction. The story appeared everywhere in the mainstream press… retail investors began jumping in… and the rest, as they say, is history.

Two months before jumping to the NASDAQ, Cronos’ average daily volume was 280,000 shares. Today, its average daily volume is around 16 million shares. That’s a 5,600% jump in average volume in 16 months and a direct result of the uplisting.

As billions of dollars poured into the stock, the shares soared from $0.25 per share in July 2016 to $25 per share in January 2019 — a gain of nearly 10,000% in less than three years.

These are the stocks I aim to identify — the ones with the ability to jump 10X in the next few years. These are the kinds of gains that can change your life.

Attracting Big Money

Cronos Group isn’t the only Pot Jumper Stock out there, but it’s one of only a few. Just a handful of companies have made the jump to a major U.S. stock exchange in the last year. Now, they are some of the biggest names in the world when it comes to marijuana stocks.

You may have heard of a company called Canopy Growth (NYSE:CGC).

It’s the largest marijuana company on the planet. All the media outlets love to talk about it. Mostly because it’s done nothing but go up in price.

Canopy’s explosive gains can be traced back to its jump.

I first looked at Canopy back in April 2016. It was trading for just $2 per share… and it wasn’t on anybody’s radar.

But I believed Canopy was poised for a huge profit explosion. And sure enough, that’s exactly what happened.

On May 24, 2018, Canopy became the first marijuana company to trade on the NYSE. The first day of trading was unimpressive to say the least. The stock fell 6% and shortsighted critics concluded that marijuana stocks were not ready for the big time.

Well… they couldn’t have been more wrong. Just six months later, Canopy had more than doubled.

Jumping to a major U.S. stock exchange woke up the big boys — just like it did with Cronos.

In August 2018, multi-billion-dollar alcohol conglomerate Constellation Brands (NYSE:STZ), which is best known for its Corona beer brand, invested $4 billion into Canopy. This followed its initial October 2017 investment of $245 million and gave Constellation a 38% stake in Canopy.

And not only did Constellation invest a large amount of money, it did so at a huge 51% premium.

So remember when I said I first liked Canopy when it was trading at $2 per share? Today, it has grown into a $14.5 billion behemoth. It traded as high as $59.25 on October 16, 2018 — which means early investors could have locked in gains of 2,800%+ in just two-and-a-half years.

Don’t Wait

You can see why I love the legalization trend and the opportunities opening up in marijuana stocks that can make the jump to a major stock exchange.

Remember, we’re still in the early stages of this jumper phenomenon. I was just in NYC this week at a cannabis conference, and I can tell you that people I spoke with now think it is more likely than before that President Trump will legalize at least some form of marijuana use. Not only would pot stocks in general surge, but the trickle of companies uplisting to major exchanges would turn into a flood.

Whether that happens or not, we’ve uncovered a reliable system for identifying and exploiting what is undoubtedly the biggest — and often most overlooked — catalyst in the marijuana markets: cannabis stocks that jump to the major exchanges.

My Pot Jumper System has already yielded great results. And now’s the perfect time to get in on the action.

If you’d like to see how this approach could make virtually anyone a millionaire, then watch this. And you can get my No. 1 cannabis recommendation for free… just for watching.

Matthew McCall is the founder and president of Penn Financial Group, an investment advisory firm, as well as the editor of Investment Opportunities and Early Stage Investor. He has dedicated his career to getting investors into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA), +1,044% in Tesla (TSLA), +611% in Liquefied Natural Gas Limited (LNGLY), +324% in Bitcoin Services (BTSC), just to name a few. If you’re interested in making triple-digit gains from the world’s biggest investment trends BEFORE anyone else, click here to learn more about Matt McCall and his investments strategy today.


Article printed from InvestorPlace Media, https://investorplace.com/2019/04/how-to-know-when-to-buy-marijuana-stocks/.

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