- Major Canadian cannabis producers, including Cronos Group, MediPharm Labs and OrganiGram, announced third-quarter earnings this week.
- Stock moves following the reports were surprising.
- Pot stock guru Anthony Planas updated his exclusive Green Flag Index, which gives you the advantage you need in this sector.
This week, Canadian cannabis companies reported third-quarter earnings. The results — and stocks’ reactions — were surprising.
Here in the office, when any of us have a question about pot stocks, Anthony Planas is the first person we ask.
Anthony is so tuned in to the sector, he created an index to help us identify the best (and worst) marijuana companies at any given moment. Read on for the latest update on the index.
He also records a free YouTube video every week — even a couple of weeks ago, when he was on vacation in Hawaii! — where he discusses breaking news in the industry.
If you missed Anthony’s free Marijuana Markets video on Thursday, check it out now!
He covered earnings reports from Canadian cannabis producers including Cronos, the world’s largest cannabis company.
These heavy hitters’ reports are important for cannabis investors because they tell us the direction we can expect the sector to take.
You can see the news he covered in the snapshots below — but be sure to watch Anthony’s video for his take on all three companies’ earnings.
Now, I want to share more about Anthony’s Green Flag Index.
No other company in the world has this index. If you’re interested in profiting from the pot market, you need to pay attention. It’s the key to getting far ahead of the crowd.
What the Green Flag Index Tells Us
Anthony dubbed his proprietary metric the Green Flag Index.
It measures what we’d pay for a company based on how much product it sells — measured in kilograms produced and average price per gram.
By knowing the value of each company — which is the cheapest and which is the most expensive — we go a long way toward identifying the best investments.
The other crucial piece is Anthony’s top-notch analysis. He blended each company’s current and future production to create this index.
The higher the rating, the more you pay for shares of that producer.
After this latest batch of earnings, I asked Anthony to give us an update. (You can see his update, from October 17 here.)
Here are the latest numbers, ordered from least expensive to most.
I’ve been following Anthony’s index long enough to know that a stock isn’t a buy just because it’s among the least expensive — and the most expensive stocks are sometimes priced that way because they’re worth it.
When I asked Anthony what he makes of these numbers, here’s what he told me:
Cronos Group holds on to the top spot for most expensive producer. While overall sales grew, the price per gram sank to near industry lows. Shares are buoyed thanks to its partnership with the tobacco-maker Altria Group. But continued weak performance threatens this relationship.
OrganiGram Holdings and Hexo Corp. are the cheapest after big sell-offs from disappointing earnings. Neither has the support from a major alcohol or tobacco partner to support operations through weak sales.
Aphria Inc. is in a good position to drive revenue growth and see positive earnings. It trades at a discount to the average of its peers.
If you’re new to Winning Investor Daily or to cannabis investing, just know that the sector’s taken a massive hit this fall.
It’s hard to say how much further these stocks will fall before they turn around — but stay tuned in to Anthony’s Marijuana Markets videos and Winning Investor Daily articles for the best expert advice.
When he identifies a bottom, he and Matt Badiali will recommend several great stocks to readers of Real Wealth Strategist and Front Line Profits!
Until then, we’d like to hear from you!
Are you holding your pot stocks through this volatility? Is there anything related to the sector that you’d like Anthony to discuss? Do you have questions about the Green Flag Index?
Leave a comment below!
Watch Our Other YouTube Videos!
We have more great content to share this week!
- Alpha Investor Report Editor Charles Mizrahi’s six-minute video, “How to Trade Options and Make Serious Money.”
- Quick Hit Profits Editor Chad Shoop’s five-minute video, “Earnings Reports: How I Make Consistently Profitable Trades.”
- And Apex Profit Alert Editor John Ross’ four-minute video, “Simple Trading Strategy: How You Can Trade Smarter, Not Harder.”
Stay tuned for more great videos and articles!
Check out the articles below if you missed any of our experts’ advice this week.
How to Finance the Vacation of Your Dreams and More
Many of us think that traveling — or any big dream — takes years of budgeting and penny-pinching. Investing can help you build toward those dreams … but it still takes time. Matt Badiali talks about one way you can increase your gains quicker and start making your dreams a reality. (3-minute read)
Dominate Earnings and Make Consistent Gains This Holiday Season Through 2020
Four times a year, publicly traded companies announce their earnings reports. Investors try to predict earnings because the reports can cause big moves in a stock. It’s a hit-or-miss gamble. But Chad Shoop developed a system that allows him to pinpoint profitable and consistent gains, despite the outcome. (4-minute read)
A Simple Options Trading Strategy: Make the Most of Your Time and Money
Passive investing can give you satisfactory returns … in the long run. But to pocket the potential gains in a short period of time, it takes a savvy investor with an edge. John Ross shares his Chart of the Week, and it shows the chance to take advantage of a downtrend. John also shares a can’t-miss approach that launched yesterday! It will help you work smarter, not harder. (4-minute read)
Options Trading With an Edge: This Strategy Could Revolutionize Your Trading
To be successful in the stock market, you need to have an edge — especially if you trade options. Charles Mizrahi talks about this one crucial factor in trading, and he shares a strategy you can’t miss that will revolutionize how you make money. (6-minute video)
This Is the Options Trading Strategy for Earnings Season in 2020
Companies announce their earnings four times a year. Investors speculate on how a stock will move based on earnings — but doing so is a bad habit. With this approach, though, you don’t make a move until after companies report earnings. Anthony Planas talks about this revolutionary strategy that will change how you make money. (3-minute read)