If you listened to the weekly podcast yesterday, I gave you a heads-up about today’s actions.

It’s time to sell The Valens Company (Toronto: VLNS) and Alcanna Inc. (Toronto: CLIQ).

Our optimism for these junior cannabis stocks just hasn’t panned out. Shares continue to languish.

It’s time to pull the plug and put that money to work where it will do us some good.

As we said when we sold MediPharm Labs, the COVID-19 pandemic took a huge toll on all the small cannabis companies.

And contrary to what we expected (higher sales and continued growth), the sector has lagged.

It’s hard to keep hoping when our mining stocks rip higher every day.

This disappointing outcome won’t end in the second half of 2020. I like this business model, but we need to wait for the sector to move into an uptrend.

That’s why we are selling our positions in The Valens Company and Alcanna.

First Action to Take: Sell shares of The Valens Company (Toronto: VLNS) at the market price, but use a limit order to do so.

Second Action to Take: Sell shares of Alcanna Inc. (Toronto: CLIQ) at the market price, but use a limit order to do so.

For now, we need to step back and watch this sector.

We can put our money to work in precious metals instead. We’ll wait for cannabis to begin moving higher.

As the world adjusts to a new normal, the demand for cannabis should increase.

That’s good news for those two companies. We could jump back in once they start to rally.

If you have questions, send an email to my team and me at frontline@banyanhill.com.

Good investing,

Matt Badiali
Editor, Front Line Profits