In the month since my November report was published, a lot has happened—most of it good. The big news today is that Innovative Industrial Properties (IIPR) has announced the acquisition of a commercial property in Arizona that will be leased by The Pharm, one of Arizona’s largest wholesalers of medical-grade cannabis. Operating as a REIT, Innovative Industrial Properties helps marijuana businesses overcome the challenges posed while traditional banks remain reluctant to deal with the industry. The commercial property for The Pharm comprises 358,000 square feet of greenhouse and industrial space, and will be the subject of 15-year lease.
If you bought IIPR stock a month ago, when my report came out, you now have a quick 25% profit. If you didn’t buy, it’s now prudent to wait for a bit of a consolidation period. And if you’re a trader, you might consider taking some profits here.
As for the other stocks in my report, the four Canadian growers, Aphria (APHQF), Aurora Cannabis (ACBFF), Canopy Growth (TWMJF) and Cronos Group (PRMCF) look fine. All these stocks are under accumulation by people just getting into marijuana investing.
Organigram (OGRMF), the grower/therapist, looks good, and can be bought on this pullback.
Kush Bottles (KSHB) had a great run over the past month and is now at a fine buying point, having pulled back to its 25-day moving average.
The chart of Turning Point Brands (TPB) (the old smokeless tobacco company adapting to the new age) has survived a shakeout to its 200-day moving average and resumed its uptrend.
22nd Century Group (XXII), the developer of low-nicotine cigarettes, has had a good month but remains below its high of early October, and is at risk of being dropped, as is Corbus Pharmaceuticals (CRBP), which is no higher than it was in July.