Last week I told you that there would probably not be an update this week, as I would be attending a marijuana conference.
If the market had stayed calm, we could have easily skipped a week.
But the market has been up for six straight days, marijuana stocks look good, overall, and while we don’t quite have a buy signal from our intermediate-term trend-following indicator, we are very close.
Plus, there’s been some good news on the banking front.
The Secure And Fair Enforcement (SAFE) Banking Act, which would protect banks that service state-legal cannabis businesses from being penalized by federal regulators, is progressing through the U.S. House of Representatives faster than some observers expected. Nearly one-half of all House members (206 representatives) have so far signed on as cosponsors.
Banking associations representing all 50 states have called on Congress to pass the bill, as have the National Association of Attorneys General and the National Association of State Treasurers.
Getting it through the Senate, though, may require adding amendments, like extending the banking protections to hemp and CBD businesses and even blocking regulators from going after certain unrelated controversial business sectors like the gun and payday loans industries.
Bottom line, the market likes the possibilities.
As for the portfolio, we come into today 22% in cash, and that seems a bit light, given the market’s growing strength. So, today we are averaging up in three stocks, APHA, CRON and OGI. After the buys, the portfolio will be about 14% in cash.
Updates on those three and a few other stocks in the portfolio that have had interesting developments can be found below. But you won’t find updates on all the stocks; not enough has happened since last week.
Updates
Aphria (APHA) Aphria is a major Canadian marijuana producer, with good long-term prospects. We previously took profits at 15.20 (last October) and 8.15 (mid-April), and now it’s time to put some money back into the stock, which has built a base between 6.5 and 7 over the past month, and is now showing signs of strength. The stock is unusually cheap for a Canadian major. The portfolio will now double its position.
Canopy Growth (CGC) Canopy Growth will release its financial results for the fourth quarter and fiscal year ended March 31 after the market close on June 20. The stock, the most expensive of all the Canadian majors, just climbed above its 200-day moving average yesterday, but remains in a long consolidation pattern.
Cresco Labs (CRLBF) CRLBF is still correcting. The portfolio is underweight in the stock and has a good profit so we can tolerate the downturn, but if you have a growing loss, don’t let it get too big.
Cronos Group (CRON) We have been underweight the stock, as it has corrected since the end of February, but it is now strong and above all its moving averages, so we will now double our position.
Green Thumb Industries (GTBIF) GTBIF is still correcting, and our loss is getting close to unacceptable. But I will hold a little longer. Green Thumb has the potential to be the leading marijuana dealer in the Midwest.
Innovative Industrial Properties (IIPR) It’s very interesting that even as the broad market blasts off, this conservative, dividend-paying REIT keeps hitting new highs. One reason: falling interest rates.
Organigram (OGI) Canadian OrganiGram seems undervalued relative to its peers, and has one of the best charts of the plant-touching marijuana companies. The stock is right on its 25- and 50-day moving averages, trending slowly higher. The portfolio will now increase its position by 50%.
Turning Point Brands (TPB) We averaged up in TPB on May 30, and now the stock is hitting new highs! If you don’t own this tobacco/cannabis company, and you want a lower-risk entry into the cannabis industry, you can consider buying on the next pullback.
Important Notice: Don’t miss my Webinar on Marijuana Investing next Wednesday, June 19. For details, click here.