Cannabis Rally Alert: 1 Overlooked Stock to Buy Now
- A bombshell earnings report prompted one cannabis stock to rally 44%.
- But investors overlooking a hidden detail are putting their money behind the wrong name.
- Anthony Planas reveals why the Street got the story wrong — and how you can profit from it.
Don’t blink … cannabis stocks are ripping higher.
In case you missed it, pot stocks are shaking off close to a yearlong bear market.
And one company in particular incited the sector’s rally: OrganiGram Holdings Inc. (Nasdaq: OGI).
The Canadian producer posted earnings that bulldozed investors’ expectations. That’s because its revenue shot up roughly 50% since last quarter.
Shares of OrganiGram closed 44% higher on January 15. But the gains didn’t stop there.
The Horizons Marijuana Life Sciences Index ETF (Toronto: HMMJ), an exchange-traded fund (ETF) with top North American cannabis holdings, rallied 6.5% on the day.
This was enough to lift other beaten-down names:
- Hexo Corp. (NYSE: HEXO) rallied 16%.
- Aurora Cannabis Inc. (NYSE: ACB) shot up 14%.
- And Cronos Group Inc. (Nasdaq: CRON) gained nearly 6%.
But the hype-fueled rally should raise questions in investors’ minds: What actually caused the rally? And is it too late to get in?
In this week’s Marijuana Market Update, I answer those exact questions. I tell you exactly what OrganiGram’s earnings mean — and which specific company is the best buy in the sector right now. (Hint: It isn’t OrganiGram.)
Profit From Wall Street’s Knee-Jerk Reaction
Wall Street is still overlooking one of the best-kept secrets in the cannabis sector.
This company saw revenue grow 337% since it went public last year. And unlike its peers, it’s in the black with positive earnings.
But this is only the start for this tiny Ontario-based company. That’s because, with the launch of Cannabis 2.0 in Canada, its products and services will be in huge demand.
We just released this recommendation to Front Line Profits readers.
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Internal Analyst, Banyan Hill Publishing