By Nigam Arora
The U.S. Food and Drug Administration has thrown a big impediment in the way of marijuana investors.
Before discussing the FDA’s move, let’s build some background with the help of a chart.
Please click here for a chart showing segmented money flows in 16 popular marijuana stocks.
Note the following:
• Smart money flows are neutral in Aphria /zigman2/quotes/207425803/composite APHA -0.41% , Canopy Growth /zigman2/quotes/200603886/composite CGC +1.36% , Cronos /zigman2/quotes/206842762/composite CRON +4.27% and New Age Beverages /zigman2/quotes/200595917/composite NBEV +0.90% .
• Smart money flows are mildly negative in Aurora Cannabis /zigman2/quotes/210559470/composite ACB +2.98% .
• Smart money flows are negative in marijuana ETF /zigman2/quotes/204332491/composite MJ +1.87% .
• Smart money flows are negative in Curaleaf /zigman2/quotes/205334348/composite CURLF +0.67% , Liberty Health /zigman2/quotes/204270480/composite LHSIF -1.32% , MedMen /zigman2/quotes/201940908/composite MMNFF -3.59% and Tilray /zigman2/quotes/209129655/composite TLRY +17.09% .
• Smart money flows are mildly positive in Green Thumb Industries /zigman2/quotes/200716694/composite GTBIF -0.34% .
• Among marijuana-related stocks, smart money flows are mildly positive in Corbus Pharmaceuticals /zigman2/quotes/201549545/composite CRBP +1.03% and KushCo Holdings /zigman2/quotes/209165034/composite KSHB -3.85% .
• Among marijuana-related stocks, smart money flows are negative in GW Pharmaceuticals /zigman2/quotes/209686240/composite GWPH +1.88% , Scotts Miracle-Gro /zigman2/quotes/200553749/composite SMG -0.11% and Constellation Brands /zigman2/quotes/207737284/composite STZ -0.92% .
Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.
It is important for investors to go directly to the source and read the FDA news release carefully. The FDA warned 15 companies for illegally selling various products containing cannabidiol on safety concerns. Here are the important points:
• Before forming an opinion of the FDA, keep in mind that the FDA’s intention is to protect the public from harm. The FDA is well-intentioned. The key is to expedite the research.