By Nigam Arora
Serious marijuana investors ought to pay attention to the complacency that’s creeping into the stock market. Historically when complacency abounds, stocks fall, unless there are new positive fundamental developments or new short-squeezes.
A lot of money is to be made in marijuana. However, there are times when it is important to preserve capital. Since I wrote “How to potentially become a marijuana millionaire, albeit carefully,” a lot of money has been made in marijuana stocks by following segmented money flows. Let’s explore the latest money flows in marijuana stocks with the help of a chart.
Please click here for a chart showing segmented money flows in 17 popular marijuana stocks. Please note the following:
• As the chart shows, Tilray /zigman2/quotes/209129655/composite TLRY +2.64% has lost the No. 1 non-risk-adjusted ranking and is now No. 3. Aphria /zigman2/quotes/207425803/composite APHA +1.54% is now ranked No. 1.
• Canopy Growth /zigman2/quotes/200603886/composite CGC +2.43% continues to hold the top spot in the risk-adjusted-ranking. (More on rankings later.)
• Momentum (momo) crowd money flows are extremely positive in Curaleaf /zigman2/quotes/205334348/delayed CURLF +0.76% . There is a lot of excitement about Curaleaf providing CBD products to CVS /zigman2/quotes/209664499/composite CVS -0.04% , the largest drug-store chain. This is a major positive development for marijuana investors. However, smart-money flows in Curaleaf are negative. This indicates that the “up” move in Curaleaf is overdone. (The smart money is professional investors.)
• Momo crowd money flows in Cronos /zigman2/quotes/206842762/composite CRON +5.17% are very positive. Cronos has an investment from cigarette giant Altria /zigman2/quotes/208895754/composite MO -0.14% . However, smart money flows in Cronos are mildly negative.
• Aurora Cannabis /zigman2/quotes/210559470/composite ACB -0.93% got a boost when it attracted Nelson Peltz as an adviser. Peltz is an accomplished person and will certainly be a big help to Aurora Cannabis. Momo crowd money flows in Aurora Cannabis are positive but smart money flows are mildly negative.
• Acreage Holdings /zigman2/quotes/205165963/delayed ACRGF +5.23% has attracted a number of politicians to its board. However, in spite of heavy publicity, momo crowd money flows have fallen from extremely positive to positive.
• Momo crowd money flows continue to be positive in marijuana ETF /zigman2/quotes/204332491/composite MJ +0.32% , New Age Beverages /zigman2/quotes/200595917/composite NBEV +1.55% , MedMen /zigman2/quotes/201940908/delayed MMNFF -3.67% and Liberty Health /zigman2/quotes/204270480/delayed LHSIF +1.47% .
• Among cannabis-related stocks, Corbus Pharmaceuticals /zigman2/quotes/201549545/composite CRBP -1.13% is the only one with positive money flows. In reality, this is a small biotech that gets grouped with cannabis stocks.
• The other biotech, GW Pharmaceuticals /zigman2/quotes/209686240/composite GWPH -0.13% , which has an approved FDA drug, is also seeing negative smart money flows.
• Among popular marijuana-related stocks, KushCo Holdings /zigman2/quotes/209165034/delayed KSHB +9.50% aka Kush Bottles, Craft Brew Alliance /zigman2/quotes/209915231/composite BREW -0.30% , Scotts Miracle-Gro /zigman2/quotes/200553749/composite SMG +0.83% and Constellation Brands /zigman2/quotes/207737284/composite STZ -0.48% are seeing negative smart money flows.