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How You Can Beat Wall Street to Pot Stocks

I may have been the only person in America who spent some of my Memorial Day Weekend looking for the next great opportunity in what I call Pot Jumpers.

Yes, it’s partly because I’m a stock geek. I admit it. But it’s also because I get a little obsessive when I see a big opportunity.

Pot Jumpers are definitely a big opportunity.

They are stocks that go public on minor stock exchanges, which have lower liquidity and few requirements for listing. Wall Street firms can’t even buy them there. But the elite stocks that uplist – or “jump,” as I call it – to one of the major exchanges are transformed in the process… and investors can make a lot of money.

I’ve told you before about Cronos Group (CRON), which was the first Canadian cannabis company to make the leap to a major U.S. stock exchange. It soared nearly 10,000% in less than three years! And if you wanted to cash in on those gains, the key was to buy before the big money could.

This opportunity is only getting hotter. We’ve had some early success with our Pot Jumper stocks that I want to build on with future Pot Jumpers.

Just last week, two stocks I recommend in Early Stage Investor moved to the next phase of their jumps. The Flowr Corporation (FLPWF) was approved to uplist to the NASDAQ, and Organigram (OGI) completed its jump when it officially debuted on the NASDAQ.

Even at this incredibly early stage, we see what kind of profits are possible.

Flowr announced on February 5 that it had applied for a NASDAQ listing. When the company announced its approval last week (on May 23), the stock had surged 43% in less than four months.

Organigram announced its NASDAQ application on April 26 and was approved on May 17. In just those three weeks, OGI jumped 22%.

But this is only the beginning for both stocks… and for other elite jumpers. We’ve uncovered a reliable system for identifying and exploiting what is undoubtedly the biggest – and often most overlooked – catalyst in the marijuana market. So any time I can spend finding the next big jumper stock is well worth it.

After all, legal marijuana is the fastest-growing industry in America, set to grow 10-fold over the coming decade while creating massive new markets and stock winners.

Making the Grade

Companies want to uplist to major exchanges for a lot of reasons, of course. Money being chief among them.

Uplisting brings in more investors because of the instant credibility it provides. If these companies show they can measure up to the same requirements as the big boys in more traditional industries, investors feel much more comfortable putting their hard-earned money in the stock.

It’s kind of like when a food product earns the “USDA Organic” label. Many grocery shoppers are just looking for that familiar green logo, and it stands out. When a stock uplists to a major exchange, investors of all sizes have more confidence because they know the stocks have met certain criteria.

To list on the NYSE, a company must be valued at $100 million or more with a minimum share price of $4, monthly trading volume of at least 100,000 shares, and 1.1 million shares held on the public market. There are financial minimums, as well.

If a company can meet the NYSE’s “Earnings Test” or its “Global Market Capitalization Test,” it’s good to go.

In the first instance, the Jumper Stock must be able to produce positive earnings. Specifically, it must do so for each of the previous three years, totaling at least $10 million. And the two most recent years must have at least $2 million in earnings.

When a company is just getting off the ground, it often plows all of its revenues back into building the business. So, the Earnings Test rules out a lot of these up-and-comers.

Luckily for them, they can skip that if they pass the other test. The Global Market Capitalization Test says that the company can still uplist if it goes at least 90 days with a market cap of $200+ million.

Corporate governance must also be met. Basically, the company can’t just cater to shareholders and/or executives. It has to balance their needs with those of other stakeholders — like customers, suppliers, and yes, the government.

That includes things like having a majority independent board, and letting the public see its financials by filing an Annual Report with the SEC.

I mention these requirements so you can see how meeting them provides a lot of validity to a business. You can also see why companies trading on the smaller exchanges (like the OTC) have plenty of incentive to reach them.

That may be doubly true for marijuana, which some people are deeply prejudiced against. When pot stocks make it into the mainstream, you can bet they worked twice as hard to get there.

Speaking of requirements…

I’ve Got My Own Criteria

I don’t just wait around until after a Jumper Stock makes it onto the NYSE or NASDAQ.

As I’ve demonstrated, you make the majority of the gains by buying into great companies before this game-changing event.

Now, as an early stage investor, you don’t want to get caught up in the hype when it is unwarranted. You have to reject a majority of the opportunities that present themselves. You’re looking for the diamond in the rough.

So, how do you find it? With a logical, objective, well-researched approach to picking the stocks.

I spent months developing criteria that any potential Jumper Stock must meet before I recommend it in Early Stage Investor. The exchanges do a decent job with their criteria, but mine are even more stringent.

For one thing, the stock has to show positive momentum. And what most people don’t realize is that you can’t just gauge that by looking at the price. You’ve got to look at volume, too.

The volume trend is a very important technical indicator. Take the number of shares that trade hands on a given day, average it out, and chart that data over the last 50 trading days.

If the trend line is increasing, it shows that more investors are piling in. This is evident in Flowr’s chart below. The red and gray bars at the bottom are volume, and the green line I drew is the rising trend line. With the higher volume comes a higher stock price, especially after the company announced its intention to uplist.

You Can Buy Before Wall Street

Once these marijuana stocks begin listing on the big exchanges, all bets are off.

As part of our research as we were developing our system, my team and I looked at all the stocks that have jumped from tiny exchanges to the big exchanges here in the United States. The results are undeniable.

On average, from IPO to peak gains, these Jumper Stocks have averaged 2,905% returns.

That’s enough to turn every $10,000 invested into more than $290,000.

The key is getting in early, before the big news hits. Institutions can’t even buy at that stage, so smart investors can really set themselves up for life-changing returns if they get there before the “big money” steps in.

I’ve been in this business for nearly two decades, and I have rarely if ever seen a method of quickly growing your wealth this promising.

P.S. You can make a heck of a lot of money investing in the best marijuana stocks BEFORE they “jump.”

We’ve already gotten some great results from my Jumper Stock System, and this is just the beginning. As legalization gets closer, the trickle of companies uplisting to major exchanges could turn into a flood.

If you’d like to see this approach in action and learn how it could make virtually anyone a millionaire, click here to watch this special presentation.

You’ll also learn how to get access to additional stocks that could soar 1,000%, including my brand new recommendation that is moving into a period in which sales are growing at a triple-digit pace annually. Go here to learn more.

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