Third Quarter Earnings for Canadian Cannabis Companies — Pot Stocks Tanked

Kristen Barrett

5 years ago

Story Highlights

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?

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.

***

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