The Time Is Now (Maybe!)

I write about cannabis stocks almost as much as I think about them, which is a lot. I run 420 Investor, which is about to turn 11 next month, at Seeking Alpha. There is a sub-service, too, The Big Picture. I contribute usually one article a week to Seeking Alpha too. I run a cannabis investing portal for news and information, New Cannabis Ventures too.

For the past 20 months or so, I have been very cautious. I wrote here on June 7th about how the sector is priced more correctly. I said then and I will repeat: I am not pounding the table! Cannabis stocks fell sharply in June, and they are a little lower today so far with about a half and hour of trading to go. The New Cannabis Ventures Global Cannabis Stock Index as I type is at 8.57, which is up 5.7%. This is less than the S&P 500, but more than the more appropriate Russell 2000 Small-Cap Index, which is about unchanged.

The GCSI has fallen a lot over the past 3+ years, as you can see on the 5-year chart:

I am finding some very cheap stocks in the sector, though not all stocks should be considered. My model portfolio at 420 Investor is up so far in 2024 by a lot more than the index (about +15% now). Currently, it is 29% MSOs (4 names), 34% Canadian LPs (3 names) and 37% Ancillary (4 names).

I am so confident that things are improving fundamentally for the sector and anticipate so much interest, that I raised my price today for 420 Investor. It's not yet a done deal, but we are moving towards rescheduling of cannabis by the DEA, which would wipe out an evil tax, 280E. This could be a catalyst for investors to buy what are very cheap stocks. When I wrote less than a month ago, I was offering 6 "Top Picks" to subscribers of The Big Picture. I added one today, and there are now 9 Top Picks.