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

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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 +1.32% has lost the No. 1 non-risk-adjusted ranking and is now No. 3. Aphria /zigman2/quotes/207425803/composite APHA +5.03% is now ranked No. 1.

• Canopy Growth /zigman2/quotes/200603886/composite CGC +3.45% 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/composite CURLF +1.67% . There is a lot of excitement about Curaleaf providing CBD products to CVS /zigman2/quotes/209664499/composite CVS +1.08% , 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 +7.34% are very positive. Cronos has an investment from cigarette giant Altria /zigman2/quotes/208895754/composite MO +1.39% . However, smart money flows in Cronos are mildly negative.

• Aurora Cannabis /zigman2/quotes/210559470/composite ACB +3.66% 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/composite ACRGF -1.39% 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 +2.26% , New Age Beverages /zigman2/quotes/200595917/composite NBEV +1.36% , MedMen /zigman2/quotes/201940908/composite MMNFF +6.00% and Liberty Health /zigman2/quotes/204270480/composite LHSIF -1.28% .

• Among cannabis-related stocks, Corbus Pharmaceuticals /zigman2/quotes/201549545/composite CRBP -1.52% 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 -1.65% , which has an approved FDA drug, is also seeing negative smart money flows.

• Among popular marijuana-related stocks, KushCo Holdings /zigman2/quotes/209165034/composite KSHB -2.54%  aka Kush Bottles, Craft Brew Alliance /zigman2/quotes/209915231/composite BREW +0.47% , Scotts Miracle-Gro /zigman2/quotes/200553749/composite SMG -0.28% and Constellation Brands /zigman2/quotes/207737284/composite STZ +0.80% are seeing negative smart money flows.

/zigman2/quotes/209129655/composite
US : U.S.: Nasdaq
$ 7.67
+0.10 +1.32%
Volume: 4.26M
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$945.20 million
Rev. per Employee
$62,689
loading...
/zigman2/quotes/207425803/composite
US : U.S.: Nasdaq
$ 4.95
+0.24 +5.03%
Volume: 7.92M
July 15, 2020 1:13p
P/E Ratio
52.95
Dividend Yield
N/A
Market Cap
$1.26 billion
Rev. per Employee
$147,410
loading...
/zigman2/quotes/200603886/composite
US : U.S.: NYSE
$ 17.98
+0.60 +3.45%
Volume: 2.79M
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$6.43 billion
Rev. per Employee
$115,039
loading...
/zigman2/quotes/205334348/composite
US : U.S.: OTC
$ 7.30
+0.12 +1.67%
Volume: 283,079
July 15, 2020 12:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$3.78 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/209664499/composite
US : U.S.: NYSE
$ 64.39
+0.69 +1.08%
Volume: 3.37M
July 15, 2020 1:13p
P/E Ratio
11.65
Dividend Yield
3.11%
Market Cap
$83.26 billion
Rev. per Employee
$659,586
loading...
/zigman2/quotes/206842762/composite
US : U.S.: Nasdaq
$ 6.87
+0.47 +7.34%
Volume: 5.55M
July 15, 2020 1:13p
P/E Ratio
7.42
Dividend Yield
N/A
Market Cap
$2.23 billion
Rev. per Employee
$55,248
loading...
/zigman2/quotes/208895754/composite
US : U.S.: NYSE
$ 41.63
+0.57 +1.39%
Volume: 2.90M
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
8.09%
Market Cap
$76.30 billion
Rev. per Employee
$2.36M
loading...
/zigman2/quotes/210559470/composite
US : U.S.: NYSE
$ 12.18
+0.43 +3.66%
Volume: 3.45M
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$1.33 billion
Rev. per Employee
$94,401
loading...
/zigman2/quotes/205165963/composite
US : U.S.: OTC
$ 2.74
-0.04 -1.39%
Volume: 141,680
July 15, 2020 12:47p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$192.54 million
Rev. per Employee
N/A
loading...
/zigman2/quotes/204332491/composite
US : U.S.: NYSE Arca
$ 13.56
+0.30 +2.26%
Volume: 781,939
July 15, 2020 1:13p
loading...
/zigman2/quotes/200595917/composite
US : U.S.: Nasdaq
$ 1.49
+0.02 +1.36%
Volume: 747,901
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$136.11 million
Rev. per Employee
$304,998
loading...
/zigman2/quotes/201940908/composite
US : U.S.: OTC
$ 0.19
+0.01 +6.00%
Volume: 1.37M
July 15, 2020 12:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$114.08 million
Rev. per Employee
$49,729
loading...
/zigman2/quotes/204270480/composite
US : U.S.: OTC
$ 0.36
-0.0046 -1.28%
Volume: 249,073
July 15, 2020 12:55p
P/E Ratio
7.27
Dividend Yield
N/A
Market Cap
$123.27 million
Rev. per Employee
$71,336
loading...
/zigman2/quotes/201549545/composite
US : U.S.: Nasdaq
$ 7.12
-0.11 -1.52%
Volume: 655,224
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$524.11 million
Rev. per Employee
$62,627
loading...
/zigman2/quotes/209686240/composite
US : U.S.: Nasdaq
$ 137.24
-2.30 -1.65%
Volume: 409,438
July 15, 2020 1:13p
P/E Ratio
136.60
Dividend Yield
N/A
Market Cap
$4.34 billion
Rev. per Employee
$20,686
loading...
/zigman2/quotes/209165034/composite
US : U.S.: OTC
$ 0.69
-0.02 -2.54%
Volume: 313,971
July 15, 2020 12:58p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$89.16 million
Rev. per Employee
$339,343
loading...
/zigman2/quotes/209915231/composite
US : U.S.: Nasdaq
$ 14.97
+0.07 +0.47%
Volume: 50,275
July 15, 2020 1:06p
P/E Ratio
N/A
Dividend Yield
N/A
Market Cap
$291.23 million
Rev. per Employee
$310,054
loading...
/zigman2/quotes/200553749/composite
US : U.S.: NYSE
$ 142.46
-0.39 -0.28%
Volume: 159,674
July 15, 2020 1:12p
P/E Ratio
24.95
Dividend Yield
1.63%
Market Cap
$7.93 billion
Rev. per Employee
$532,058
loading...
/zigman2/quotes/207737284/composite
US : U.S.: NYSE
$ 180.61
+1.43 +0.80%
Volume: 615,652
July 15, 2020 1:13p
P/E Ratio
N/A
Dividend Yield
1.66%
Market Cap
$34.59 billion
Rev. per Employee
$842,260
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