Our first recommendation is a cannabis company that just received a big investment from British American Tobacco. We are also taking profits in a previous idea.
OrganiGram Holdings Inc. (OGI)
From The Cheap Investor
There are plenty of reasons to own cannabis stocks, like OrganiGram Holdings. First, not only is OGI technically oversold, but a subsidiary of British American Tobacco also just invested $176.6 million in the company. Two, more states have legalized the use of cannabis, and far more Americans now approve of its use. In addition, after pulling back from $6.50 to about $2.54, the OGI stock appears to have caught strong support. From here, I’d like to see it challenge its prior high, near-term.
British American Tobacco bought a nearly 20% stake in OrganiGram Holdings for $176.6 million. The two will work to create a “Center of Excellence” and develop CBD-based products. Better, according to a press release from OrganiGram, the deal will help strengthen its research and development, and help it to raise capital for investment in U.S. and international markets.
Helping, we could soon see efforts to legalize it at the federal level. Senate Majority Leader Chuck Schumer hopes to end the current prohibition of cannabis this year. All as more Americans approve of legalization. In fact, according to a 2020 Gallup poll, support for legalization is now up to 68%.
Ian Cooper, The Cheap Investor, support@thecheapinvestor.com, March 27, 2021
Sell: Zynga Inc. (ZNGA)
From The Cheap Investor
Updated from WSBD 829, May 21, 2020
We’re taking some winners off the table. Sell Zynga.
Ian Cooper, The Cheap Investor, support@thecheapinvestor.com, March 27, 2021