Bulletin
Investor Alert

March 28, 2019, 9:12 a.m. EDT

Creeping complacency in marijuana-stock investing is a possible warning sign

Volatility is down, which more often than not leads to lower stock prices

new
Watchlist Relevance
LEARN MORE

Want to see how this story relates to your watchlist?

Just add items to create a watchlist now:

  • X
    Tilray Inc. Cl 2 (TLRY)
  • X
    Aphria Inc. (APHA)
  • X
    Canopy Growth Corp. (CGC)

or Cancel Already have a watchlist? Log In

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.

Read: For these ‘marijuana moms,’ working in cannabis lets their families live the good life

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 +0.61% has lost the No. 1 non-risk-adjusted ranking and is now No. 3. Aphria /zigman2/quotes/207425803/composite APHA -3.63% is now ranked No. 1.

• Canopy Growth /zigman2/quotes/200603886/composite CGC -3.22% 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 +7.13% . There is a lot of excitement about Curaleaf providing CBD products to CVS /zigman2/quotes/209664499/composite CVS +1.85% , 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 -7.92% are very positive. Cronos has an investment from cigarette giant Altria /zigman2/quotes/208895754/composite MO +2.87% . However, smart money flows in Cronos are mildly negative.

• Aurora Cannabis /zigman2/quotes/210559470/composite ACB -17.02% 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 +0.70% 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 -2.27% , New Age Beverages /zigman2/quotes/200595917/composite NBEV +2.26% , MedMen /zigman2/quotes/201940908/delayed MMNFF -3.43% and Liberty Health /zigman2/quotes/204270480/delayed LHSIF +8.82% .

• Among cannabis-related stocks, Corbus Pharmaceuticals /zigman2/quotes/201549545/composite CRBP +3.49% 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 +2.26% , 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 -3.73%  aka Kush Bottles, Craft Brew Alliance /zigman2/quotes/209915231/composite BREW -0.37% , Scotts Miracle-Gro /zigman2/quotes/200553749/composite SMG -0.14% and Constellation Brands /zigman2/quotes/207737284/composite STZ -1.76% are seeing negative smart money flows.

/zigman2/quotes/209129655/composite
US : U.S.: Nasdaq
$ 19.93
+0.12 +0.61%
Volume: 2.03M
Nov. 15, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.00 billion
Rev. per Employee
$62,689
loading...
/zigman2/quotes/207425803/composite
US : U.S.: NYSE
$ 4.25
-0.16 -3.63%
Volume: 3.52M
Nov. 15, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.07 billion
Rev. per Employee
$147,410
loading...
/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 15.33
-0.51 -3.22%
Volume: 8.34M
Nov. 15, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$5.33 billion
Rev. per Employee
$115,039
loading...
/zigman2/quotes/205334348/delayed
US : U.S.: OTC
$ 5.74
+0.38 +7.13%
Volume: 535,049
Nov. 15, 2019 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.67 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209664499/composite
US : U.S.: NYSE
$ 74.29
+1.35 +1.85%
Volume: 8.77M
Nov. 15, 2019 6:30p
P/E Ratio
21.96
Dividend Yield
2.69%
Market Cap
$96.65 billion
Rev. per Employee
$659,586
loading...
/zigman2/quotes/206842762/composite
US : U.S.: Nasdaq
$ 6.28
-0.54 -7.92%
Volume: 17.38M
Nov. 15, 2019 4:00p
P/E Ratio
7.15
Dividend Yield
N/A
Market Cap
$2.16 billion
Rev. per Employee
$55,248
loading...
/zigman2/quotes/208895754/composite
US : U.S.: NYSE
$ 47.97
+1.34 +2.87%
Volume: 8.33M
Nov. 15, 2019 6:30p
P/E Ratio
51.16
Dividend Yield
7.00%
Market Cap
$89.61 billion
Rev. per Employee
$2.36M
loading...
/zigman2/quotes/210559470/composite
US : U.S.: NYSE
$ 2.73
-0.56 -17.02%
Volume: 57.45M
Nov. 15, 2019 6:30p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.81 billion
Rev. per Employee
$94,401
loading...
/zigman2/quotes/205165963/delayed
US : U.S.: OTC
$ 4.30
+0.03 +0.70%
Volume: 426,627
Nov. 15, 2019 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$2.89 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 16.80
-0.39 -2.27%
Volume: 1.38M
Nov. 15, 2019 8:00p
loading...
/zigman2/quotes/200595917/composite
US : U.S.: Nasdaq
$ 2.26
+0.05 +2.26%
Volume: 1.53M
Nov. 15, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$176.66 million
Rev. per Employee
$304,998
loading...
/zigman2/quotes/201940908/delayed
US : U.S.: OTC
$ 0.99
-0.04 -3.43%
Volume: 1.16M
Nov. 15, 2019 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$164.04 million
Rev. per Employee
$49,729
loading...
/zigman2/quotes/204270480/delayed
US : U.S.: OTC
$ 0.36
+0.03 +8.82%
Volume: 554,923
Nov. 15, 2019 3:58p
P/E Ratio
27.41
Dividend Yield
N/A
Market Cap
$122.80 million
Rev. per Employee
$71,336
loading...
/zigman2/quotes/201549545/composite
US : U.S.: Nasdaq
$ 4.45
+0.15 +3.49%
Volume: 836,347
Nov. 15, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$287.80 million
Rev. per Employee
$62,627
loading...
/zigman2/quotes/209686240/composite
US : U.S.: Nasdaq
$ 108.41
+2.40 +2.26%
Volume: 733,396
Nov. 15, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.33 billion
Rev. per Employee
$20,686
loading...
/zigman2/quotes/209165034/delayed
US : U.S.: OTC
$ 1.55
-0.06 -3.73%
Volume: 531,324
Nov. 15, 2019 3:59p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$166.41 million
Rev. per Employee
$339,343
loading...
/zigman2/quotes/209915231/composite
US : U.S.: Nasdaq
$ 16.34
-0.06 -0.37%
Volume: 1.18M
Nov. 15, 2019 4:00p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$318.07 million
Rev. per Employee
$310,054
loading...
/zigman2/quotes/200553749/composite
US : U.S.: NYSE
$ 106.42
-0.15 -0.14%
Volume: 279,277
Nov. 15, 2019 6:30p
P/E Ratio
13.01
Dividend Yield
2.18%
Market Cap
$5.91 billion
Rev. per Employee
$532,058
loading...
/zigman2/quotes/207737284/composite
US : U.S.: NYSE
$ 179.65
-3.21 -1.76%
Volume: 1.85M
Nov. 15, 2019 6:30p
P/E Ratio
46.58
Dividend Yield
1.67%
Market Cap
$34.01 billion
Rev. per Employee
$842,260
loading...
1 2
This Story has 0 Comments
Be the first to comment
More News In
Investing

Story Conversation

Commenting FAQs »
Link to MarketWatch's Slice.