Highest Yielding Marijuana Cannabis Pot Stocks

by Fred Fuld III

You may have seen some of the major gains in some of the marijuana stocks and wanted to jump on the bandwagon. As an example, Cronos (CRON) has increased by 13% so far this year and Aurora (ACB) rose 26% even after experiencing a big drop during the last six months.

Maybe you are a relatively conservative investor and you want to receive a dividend in return for the risk you are taking. Fortunately, there are several cannabis stocks that provide investors with a yield.

Scotts Miracle-Gro Company (SMG) has a couple divisions in the marijuana industry. Its Hawthorne Gardening Co. subsidiary purchased General Hydroponics which makes and markets products for the pot growers. The company has also invested in the hydroponics company AeroGrow International (AERO) which markets to the small scale grower. Scotts’ current yield is 2.17%, with the latest dividend of 58 cents paid September 10 (today), an incense of 5.5% over the previous quarter. The dividend has increased on an annual basis since 2015.

AbbVie Inc. (ABBV), the marketer of Marinol also known as Dronabinol, a form of tetrahydrocannabinol, one of the main psychoactive ingredients of marijuana. The company has been paying quarterly dividends and has increased the annual dividend every year since 2013. AbbVie’s annual forward dividend yield is 6.28%. The company’s most recent dividend is $1.07 per share, which will be paid to investors on November 15, 2019 to shareholders of record on October 11.

Innovative Industrial Properties Inc. (IIPR), which trades on the New York Stock Exchange,  owns, manages, and leases properties to state licensed cannabis growing facilities. Annual dividends since 2017 were 55 cents, $1.20, and $2.40. The dividends are paid quarterly, currently 60 cents per share, up from 45 cents for the previous quarter, an increase of 33%. The company pays a dividend yield of 2.79%.

Altria (MO) is the tobacco company that manufactures and markets cigarettes and smokeless tobacco. The company invested over a billion dollars in Cronos Group (CRON), the Canadian marijuana company. The stock has a forward yield of 7.9%.

Molson Coors (TAP) is the seventh largest brewer in the world. The company is in partnership with HEXO (HEXO) to produce cannabis-infused beverages in Canada. Molson Coors yields 4.03%.

Horizons Marijuana Life Sciences Index ETF (HMLSF) is an exchange traded fund that invests in many companies involved in the marijuana industry. It has a yield of 7.54%.

Constellation Brands (STZ), the beer, wine, and liquor producer, has a significant ownership in the Ontario, Canada based cannabis company Canopy Growth (CGC). Constellation has a dividend yield of 1.44%.

Let’s hope some of these stocks get high, and provide you with a smoking portfolio.

Don’t forget to read:

Exclusive Interview with Chet Billingsley CEO of Mentor Capital on the Marijuana Industry

Is Apple Getting into the Marijuana Industry?

Disclosure: Author owns CGC and a long option position in ACB.

The Largest Marijuana Companies

by Fred Fuld III

Over 60% of states have legalized marijuana, either for medical purposes or for both medical and recreational use. In addition, Canada has legalized recreational cannabis throughout all the provinces after the passage of the Cannabis Act (also known as Bill C-45), joining Uruguay as the second country to do so nationwide.

If you want to invest in a new budding industry (no pun intended), it is generally considered a good idea to choose the largest stocks to invest in. They have greater  liquidity, a larger following by analysts, and the large size is usually due to stronger earnings, stronger revenues, or at the very least, greater growth potential of revenues.

So if you are looking to place your investment dollars in the cannabis industry, you might want to start you due diligence with the largest companies by market cap. (market capitalization is the total number of shares times the current market price).

The biggest one by far is Canopy Growth Corp (CGC) with a market cap of $15.3 billion. The company has a big advantage in that Constellation Brands (STZ)  invested a huge amount of money in the company, owning over a third of Canopy shares. Constellation known for its beer and wine, markets Pacifico and   Corona beer, Robert Monday and Clos du Bois wine, and Svedka vodka. Canopy has a forward  price to earnings ratio of 357 and trades at 2.87 times book value.

Coming in second place is Aurora Cannabis (ACB) with an $8.4 billion market cap. The stock has a forward P/E ratio of 555.5 and price to book value of 2.58.

GW Pharmaceuticals (GWPH) is a $5.64 billion company involved in developing cannabinoid biopharmaceutical products. It trades at 8.82 times book value.

Cronos Group (CRON) has a $5.13 billion market cap and produces and sells marijuana products in Canada, Germany, and other areas. The stock trades at 69 times forward earnings and 7.1 times book value.

Tilray (TLRY) has a $4.3 billion market cap. The company is developing cannabis infused beverages in partnership with Anheuser-Busch InBev (BUD). Tilray has a nosebleed-level forward P/E ratio of 1,111 and a price to book of 11.1.

Maybe one of these stocks will help your portfolio get higher and higher. Many tiny pot stocks are cropping up like weeds. Be careful with the smaller companies as they may go up in smoke and throw your portfolio out of joint. (Puns intended.)

Don’t forget to read:

Exclusive Interview with Chet Billingsley CEO of Mentor Capital on the Marijuana Industry

Is Apple Getting into the Marijuana Industry?

Disclosure: Author owns CGC.

 

 

Marijuana Legalization & Top Pot Stocks

by Nkem Iregbulem

Although marijuana can be used recreationally, medical marijuana has become increasingly popular over recent years as a growing amount of research supports its potential health benefits. Small studies show that medical marijuana may help in treating pain, nausea, loss of appetite, irritable bowel syndrome, Parkinson’s disease, epilepsy, and multiple sclerosis. D.C. and 31 states, including California, Nevada, Maine, Massachusetts, and Washington, have legalized medical marijuana. Meanwhile, the recreational use of marijuana is legal in 9 states, including California, Alaska, Oregon, and Colorado.

On June 21, the Canadian Senate passed the Cannabis Act, which regulates the production, distribution, and sale of marijuana in Canada. These plans have set off an investment boom or “green rush” in Canada as sales of certain forms of cannabis such as fresh or dried cannabis, cannabis oil, and plants and seeds for cultivation will now become legal. Canada will be the second country, after Uruguay, to legalize the sale of recreational marijuana.

This growing interest in marijuana may compel you to invest in pot stocks. If you are looking to gain exposure to the marijuana industry, you have a number of investment opportunities: AbbVie (ABBV), Aurora Cannabis (ACBFF), Canopy Growth (CGC), Constellation Brands (STZ), Cronos Group (CRON), GW Pharmaceuticals (GWPH), Scotts Miracle-Gro (SMG), and Tilray (TLRY). The ABBV, CGC, STZ, and SMG stocks are traded on the New York Stock Exchange, and ACBFF is traded in over-the-counter markets. Meanwhile, the CRON, GWPH, and TLRY stocks can all be found on the NASDAQ.

Your first option is AbbVie, a drug company that discovers, develops, manufactures, and sells pharmaceutical products worldwide. One of its products, Marinol, is a synthetic cannabis-based drug designed to not only helps chemotherapy patients with symptoms like nausea and vomiting but also help AIDS patients with their loss of appetite. The company was founded in 2012 and is headquartered in Illinois. AbbVie has a market cap of $144 billion and pays a dividend yield of 2.3%. The company’s stock trades at 23.67 times trailing earnings and at 10.74 times forward earnings. The stock has a price-to-book ratio of 42.01, and a price-to-sales ratio of 4.93, which would put it in the overpriced range. The company enjoys a three year revenue growth rate of 12.23% and a five year revenue growth rate of 8.95%. Its revenue has been increasing each fiscal year since 2013.

Aurora Cannabis, founded in 2006, is another option to consider. The company is based in Vancouver, Canada and is involved in the production and distribution of medical cannabis in Canada and internationally. The company’s product portfolio includes dried cannabis and cannabis oil. Aurora Cannabis has a market cap of $7.54 billion and does not pay a dividend. The company’s stock trades at 546.76 times trailing earnings and at 303.03 times forward earnings. The stock has a very high price-to-sales ratio of 97.68, so it is considered overpriced. The stock also has a price-to-book ratio of 7.59. The company’s revenue has been increasing since 2015, jumping from 1.44 million to 18.07 million and then to 55.2 million over the past few years.

Headquartered in Canada and founded in 2014, Canopy Growth is a licensed producer of medical marijuana. Its product portfolio includes items like dried flowers, oils and concentrates, softgel capsules, and hemp. Canopy Growth has a market cap of $10.8 billion and does not pay a dividend. The stock’s high price-to-sales ratio of 134.27 puts it well into the overpriced category. The stock also has a price-to-book ratio of 11.71. With its revenue increasing each fiscal year since 2014, Canopy Growth boasts a 3-year revenue growth rate of 266.47% and an even higher 5-year revenue growth rate of 724.53%. Most of the company’s revenue comes from its sales of medical marijuana under two of its brands, Tweed and Bedrocan.

Constellation Brands is a large alcoholic beverage supplier in the United States that produces beer, wine, and spirits. The company bought a large stake in the previous mentioned Canopy Growth. It is currently working on creating its own cannabis-infused non-alcoholic beverage. Constellation Brands has a market cap of $40.8 billion and pays a dividend yield of 1.39%. The stock trades at 22.04 times trailing earnings and at 21.83 times forward earnings. The stock has a high price-to-sales ratio of 5.5 and a price-to-book ratio of 3.82. With its revenue increasing each fiscal year since 2014, Constellation Brands enjoys a 3-year revenue growth rate of 7.96% and an even higher 5-year revenue growth rate 22.09%. Most of the company’s revenue come from its sales within the United States.

You might also consider Cronos Group, another cannabis company involved in the production and distribution of marijuana in countries such as Canada, Germany, and Australia. It sells dried cannabis and cannabis oils under its brand Peace Naturals. The company is headquartered in Toronto, Canada and was founded in 2012. Cronos Group has a market cap of $2.36 billion and does not pay a dividend yield. The stock trades at 917.86 times trailing earnings and at 129.87 times forward earnings. The stock has a price-to-book ratio of 10.68 and a very high price-to-sales ratio of 349.40. The company has seen increasing revenue values each fiscal year since 2015.

Based in the United Kingdom and founded in 1998, GW Pharmaceuticals is a biopharmaceutical company that researches and develops cannabinoid products for use in different disease areas. One of its products, Epidiolex, is derived from an active marijuana ingredient and is used to treat various rare childhood-onset epilepsy disorders. The company primarily does business in Canada, Europe, the United States, and Asia. GW Pharmaceuticals has a market cap of $4.78 billion and does not pay a dividend yield. The stock has a price-to-book ratio of 9.36 and a very high price-to-sales ratio of 245.76. The company’s revenue has been falling each fiscal year since 2014, giving the company a negative 3-year revenue growth rate of -35.03% and a negative 5-year revenue growth rate of -24.29%.

Another option is Scotts Miracle-Gro, the largest provider of gardening and lawn care products in the United States. Headquartered in Ohio and founded in 1868, the company sells most of its products to retailers such as Home Depot, Lowe’s, and Walmart. Over recent years, the company has taken steps towards growing its hydroponics business, one of these actions being its acquisition of hydroponic equipment maker, Sunlight Supply Inc. Medical cannabis can be grown through hydroponics, so this transition has given Scotts Miracle-Gro its association with cannabis. Scotts Miracle-Gro has a market cap of $4.34 billion and has a yield of 2.82%. The stock trades at 17.96 times trailing earnings and at 17.48 times forward earnings. The stock has a price-to-book ratio of 8.34 and a normal price-to-sales ratio of 1.73. The company has a 3-year revenue growth rate of 0.82% and a negative 5-year revenue growth rate of -0.94%.

Tilray is a pharmaceutical company that researches, develops and sells medical cannabis. The company was founded in 2018 and is based in Canada. The company’s product portfolio includes dried cannabis as well as cannabis extract in the form of purified oil drops and capsules. Most of the Tilray’s revenue comes from its sales within Canada, but the company also sells its products in Argentina, Australia, Chile, Germany, South Africa, and many other countries. Tilray has a market cap of $11.99 billion and does not pay a dividend. The stock trades at 2500 times forward earnings. Its stock has a price-to-book ratio of 414.61 and a very high price-to-sales ratio of 374.42.

The cannabis industry should continue to grow as more and more states continue to legalize, and as more and more of the large blue-chip marijuana companies jump in.

Exclusive Interview with Chet Billingsley CEO of Mentor Capital on the Marijuana Industry

by Fred Fuld III

The following fascinating and informative interview was provided by Chet Billingsley, the Chairman, CEO, and founder of Mentor Capital, Inc., a public operating company that invests in pre-IPO cannabis related businesses. He did his undergraduate work at West Point. He later received a Master’s Degree in Applied Physics at Harvard University with concurrent study at Harvard Business School, and at MIT studying proton radiology. He is also a founding director and officer of the board of directors of the Nevada Cannabis Industry Association.

The discussion includes the following:

  • What has happened in the cannabis industry during the last five years
  • Why high excise taxes can cause the illegal market to continue
  • Tilray and the Canadian market
  • Why low excise taxes caused the legal Canadian marijuana market to grow
  • The US cannabis regulatory scene
  • Beer companies buying interests in marijuana businesses
  • Tobacco companies getting into the marijuana businesses
  • The growth of the medical marijuana market versus the recreational marijuana market
  • Cannabis versus opiates
  • Cannabeer and canabeverages
  • The cannabis sub-industries, such as edibles, local delivery services, etc.
  • And much more extensive interesting information!

To stream the interview, click:

HERE

You can download as an mp3 file by right-clicking HERE (or Control click on a Mac) and choosing “save as.”

More information about Chet Billingsley and Mentor Capital can be found at:

Mentor Capital

All opinions are those of the interviewee, and do not represent the opinions of this website or the interviewer. Neither this website, nor the interviewer, nor the interviewee are rendering tax, legal, or investment advice in this interview. No investment advice is expressed or implied. No recommendations are made to buy, sell, hold, or short any security. All information is provided for education and general information only.

Disclosure: Interviewer owns shares of MNTR and has a short position in TLRY.

The Blue Chip Marijuana Stocks




by Fred Fuld III

If you have been watching some of the Canadian cannabis companies, you would have seen that many of them are on fire.

For example, Tilray (TLRY), based in British Columbia, has almost tripled in the last 15 days, shooting up from around 40 a share to over 109 per share.

The Toronto, Ontario based vertically integrated cannabis company, Cronos Group (CRON) has risen over 21% in the same time frame, moving from 42.65 to 47.23.

Many of the American marijuana stocks haven’t moved much during the last couple weeks, and some have even dropped.

Numerous investors are looking to invest in this industry, but are concerned about the volatility of many of the cannabis stocks and the stability of ongoing operations of the companies in this industry.

Yet, investors still want to participate. It is interesting to note that marijuana legalization may actually lead to reduced deaths in a community, according to the National Institute on Drug Abuse, a division of the U.S. Government’s National Institute of Health, which published the article: “Study Links Medical Marijuana Dispensaries to Reduced Mortality From Opioid Overdose.”

Fortunately there is a way for investors to take advantage of the growth of the marijuana sector though “blue chip’ companies.

Wikipedia defines Blue Chip as “a corporation with a national reputation for quality, reliability, and the ability to operate profitably”. So you might be asking, what stocks fit into this category?

Several large publicly traded corporations have, or are looking for, significant ownership interests in marijuana companies, and as more and more states legalize the use of marijuana, and the possibility of Federal legalization, these stakes could provide significant returns to the cannabis blue chops (maybe I should call them Green Chip companies?).

For example, Constellation Brands, Inc. (STZ), the large beer, wine, and liquor distributor, recently upped its stake in the medical marijuana company, Canopy Growth (CGC). Constellation has been around since 1945, trades at 15 times earnings, and pays a yield of 1.4%.

Molson Coors Brewing Company (TAP) is partnering with HEXO Corp. (HYYDF), formerly known as The Hydropothecary, a Canadian marijuana producer. Molson Coors is a $13 billion market cap company which has a very favorable price to earnings ratio of 8.7 and offers a decent dividend yield of 2.47%.

In the biotech and pharmaceutical arena, and a cannabis pure play, GW Pharmaceuticals plc (GWPH) has been developing cannabinoid prescription medicines since 1998. The stock has a market cap of almost $4 billion, but is currently generating negative earnings.

If you are looking for more speculative stocks, stay tuned for our more in-depth article on marijuana companies.

Also, check out the exclusive interview with Chet Billingsley, CEO of Mentor Capital, which invests in pre-IPO cannabis companies.

Disclosure: Author owns and has a short put position in CGC.

Interview with Tim McGraw CEO of Cannabis Real Estate Company Canna-Hub

The following informative interview was provided by Tim McGraw, CEO of Canna-Hub, a California-based real estate development and property management Company for the cannabis industry. He is an experienced commercial real estate developer who has also designed and built cannabis specific facilities in several states and abroad, and has overseen cultivation, manufacturing, distribution and security of the largest cannabis operation in Illinois.

The discussion includes the following:

  • The changes to the marijuana laws in California on January 1
  • The growth of the marijuana industry
  • The best areas in California for cannabis real estate
  • Investing in a dispensary  versus growing and cultivation
  • Regulations involved in various aspects of the cannabis business
  • The viability of owning a warehouse and leasing it to a marijuana grower
  • Dealing with cities and counties

To stream the interview, click:

HERE

You can download as an mp3 by right-clicking here and choosing “save as.”

More information about Canna-Hub can be found at

http://canna-hub.com

 

All opinions are those of the interviewee, and do not represent the opinions of this website or the interviewer. Neither this website nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview. No solicitations of investments are expressed or implied. All information is provided for education and general information only, believed to be reliable, but not guaranteed.

Is Apple Getting into the Marijuana Industry?

Maybe it’s just a coincidence but California just legalized recreational marijuana a couple months ago and now Apple (AAPL) has filed a patent for a vaporizer, often referred to as a vape. Vapes are commonly used to smoke cannabis.

According to a recent article in Gizmodo, Apple filed the application back in July and was posted yesterday on the USPTO website.

Apple Vape Application

According to the abstract, “A chamber body is to receive therein a substance that is to be vaporized or sublimated into a vapor. A plate whose bottom face rests on the substance inside the chamber body is temperature regulated, e.g., using a heater therein, which releases heat directly above the substance that lies below. The plate slides downward as the substance is consumed by vaporization or sublimation.”

Apple Vape Diagram

Who knows what plans Apple has for this device? Who would have thought that a large cap stock like Apple might come out with a product that could be used in the marijuana (cannabis, hash, hemp, ganja, weed) industry?

 

Disclosure: Author owns AAPL.

Many Marijuana Stocks Jumped 35% Today: Will They Continue to Get High or Go Up in Smoke?

If you thought that stocks in all the sectors seemed to be drifting downwards recently, you probably didn’t notice that the marijuana industry has been smoking.

For example, Cannabis Sativa (CBDS) jumped over 36% today. This is the company that Gary Johnson, the Libertarian presidential candidate, resigned from in January as CEO and Director, in order to run for president.

General Cannabis (CANN) rose by 31%, Cannabis Science (CBIS) went up by 29%, and Medical Marijuana (MJNA) went up by about 21%.

So what’s the reason for all this activity? The upcoming election. Marijuana legalization in some fashion is on the ballot in ten states, which is a record in terms of marijuana measures in one election.

The states that are involved are as follows:

Arizona
Arkansas
Arkansas
California
Florida
Maine
Massachusetts
Montana
Nevada
North Dakota

Some measure just involved medical marijuana, such as Arkansas and Florida. Other states have measures to legalize recreational marijuana, in addition to medical marijuana. Most investors are looking at Proposition 64 in the state of California, due to the size of the state’s population. Many investors believe that if California legalizes, then the cannabis stocks will take off.

marijuana stock index
Marijuana Stock Index

Look at the above chart of the Marijuana Stock Index. Back in late 2013, the pot stocks skyrocketed. Many investors in the medical arena became millionaires almost overnight, at least on paper.

The companies that make up this list are as follows:

Advanced Cannabis Solutions CANN
Cannabis Sativa Inc. CBDS
Cannabis Science Inc. CBIS
GreenGro Technologies, Inc. GRNH
GrowLife Inc. PHOT
Hemp Incorporated HEMP
mCig MCIG
Medical Marijuana Inc. MJNA
Agritek Holdings (MediSwipe) AGTK
Pharmos Corp. PARS
Planda Biotech PLPL
Psychemedics Corporation PMD
Solvay SA SVYZY
Terra Tech TRTC
Valeant Pharmaceuticals Intl. VRX

One thing to keep in mind before investing in these stocks are that most of them are very low cap and extremely speculative.

If you are looking for a list of over 120 stocks that are connected to the marijuana industry in some way, go HERE.


It remains to be seen what will happen to these stocks, or what happens with the ballot measures, for that matter. Just remember, if you invest in a small cap stock, be prepared to lose it all.

Disclosure: Author owns CBDS, HEMP, and MJNA.

Exclusive Interview with Rob Hunt of the Largest Private Equity Cannabis Fund

The following fascinating interview was provided by Rob Hunt, a partner and the Lead Industry Executive at Tuatara Capital, the largest private equity fund in the cannabis industry. He also has an extensive background in cannabis business in Colorado, Massachusetts, New Hampshire and Maine as well.

marijuana plant
marijuana plant

Rob  Hunt has more than 15 years of experience in the cannabis industry as an attorney, a consultant, and a serial entrepreneur. Rob is currently a Partner, and the Lead Industry Executive of Tuatara Capital.

Mr. Hunt was formerly the Chairman of the Coalition for Responsible Patient Care, based in MA, where he spearheaded the initiative to help develop and implement the fledgling medical cannabis market in the Commonwealth. He was the principal developer of cannabis.org, a website focused on changing the scheduling of cannabis away from being a schedule I drug on the Federal Government’s list of controlled substances, Rob still authors all of the written commentary on the cannabis.org Facebook page where he has an audience of close to 20,000 readers.

We cover a lot in this interview, including:

  • The California marijuana proposition
  • Why marijuana has remained illegal for so long
  • The current credit card ban on dispensaries
  • Opinion on publicly traded cannabis stocks
  • Crowdfunding for marijuana related companies
  • Willie Nelson’s brand of marijuana
  • Advice for investors interested in allocating funds to the cannabis industry
  • Advice for those who are interested in setting up a marijuana startup

The Interview

You will certainly enjoy all this great information that Rob Hunt provides.
To stream the interview, click:

You can download as an mp3 by right-clicking here and choosing “save as.”

More information about Tuatara Capital can be found HERE.

Let us know what you think about this interview by entering your comments in the comment section below. You can also check out the stocks in the WallStreetNewsnetwork.com Marijuana Stock Index.

All opinions are those of Rob Hunt, and do not represent the opinions of Stockerblog.com or the interviewer. Neither Stockerblog nor the interviewer nor the interviewee are rendering tax, legal, or investment advice in this interview.