The Trend Remains Up
Just a brief update today, mainly to discuss this morning’s sharp drop in Jushi Holdings (JUSHF), which we added to the portfolio last week.
The reason for the drop is that the company announced a 10,000 share offering at $3.55 Canadian (roughly $2.65 U.S.) that will raise about $26.5 million U.S. This is not unusual; a lot of marijuana companies are taking advantage of the strong climate to raise money.
And the chart is still very healthy. So, if you haven’t bought yet, this is a fine opportunity—remembering my caution that because this is a small stock it is likely to be more volatile than the others. If you already own it, sit tight. As for the temptation to average down, I can’t recommend it. One of the rules of growth stock investing says never average down; only average up.
As for the other stocks, all is well.
Three of our stocks are trading at new highs this week: Curaleaf (CURLF), Green Thumb (GTBIF) and TerrAscend (TRSSF), and four have been trading above their 50-day moving averages for a very long time: GrowGeneration (GRWG), Innovative Industrial Properties (IIPR), Jushi Holdings (JUSHF) and TerrAscend (TRSSF).
Interestingly, the Canadian marijuana stocks as a whole remain weak, though Canopy Growth (CGC), the one we retained, has seen some heavy buying in the past few weeks.
After last week’s buys, the portfolio is 18% in cash, and I’ll leave it there for now.
Next week I’ll send you a full issue, along with the latest news (third-quarter reports will begin arriving) and my thoughts about the election (the New Jersey vote on legalizing marijuana will be important).
Bottom line: The future remains extremely bright for this young industry, and my goal is to help you take advantage of the short-term moves of the best stocks while building a portfolio that includes long-term winners.