馃攳
Top 3 MARIJUANA Stocks for 2019 - Best Cannabis Stocks for 2019 - YouTube
Channel: Learn to Invest - Investors Grow
[0]
hey YouTube I'm Jimmy in this video I'm
gonna go through the 3 cannabis stocks I
[5]
think are pretty interesting for 2019
now 2018 was a pretty interesting year
[11]
for cannabis in general because a lot of
stocks went public
[14]
Canada made it legal so it's been a
pretty chaotic ride now one of the
[19]
reasons a lot of companies are listing
like crazy on different exchanges both
[23]
in the United States and in Canada is
that marijuana is gradually getting more
[28]
legal like I mentioned in Canada but
it's also getting gradually more legal
[32]
in the United States different states I
think 30 or so have legalized it at
[37]
the medical level and then there's a
handful that have legalized at the
[41]
recreational level and then just
recently I know president Trump signed a
[45]
farm bill that had the legalization of
hemp in there so the theory is that it's
[50]
gradually getting to be more likely that
marijuana will be legal at some point in
[55]
the United States and if that happens
cannabis stocks and the cannabis
[59]
industry is going to get larger and
larger and as they get larger we're
[63]
going to get more efficient as they get
more efficient it's going to become more
[67]
and more interesting for investors so
now our question is what cannabis stocks
[72]
do we think are the best and how much do
we think that we can realistically
[74]
profit from them so I created this heat
map and this shows different marijuana
[81]
stocks that are available in either the
United States or Canada the size of the
[85]
box shows how big the market cap
is the bigger the box to bigger the
[89]
market cap so first let me start with
the problem that I was having when I was
[93]
doing my research let's take this
largest one for example WEED.CN
[97]
that's the ticker for Canopy Growth
that trades in Canada now I want to
[102]
point out that this is by no means all
the marijuana stocks frankly they're
[106]
just the stocks that I had I could find
enough information to do a decent amount
[110]
of research on so if you know of any
other good ones that I don't mention
[114]
here or that aren't on this board
by all means put them in the comments
[117]
below so canopy growth has done about 94
million dollars in revenue in the past
[122]
four quarters but they have a market cap
right now of about 18 billion dollars
[127]
which means that if we were to buy it
right here we would be paying more than
[131]
a
hundred times sales to put that in
[134]
perspective if we were to buy coca-cola
right now we would pay about six times
[139]
sales if we buy Netflix we'll pay about
ten times sales if we buy Amazon four
[144]
time sales and canopy growth isn't an
outlier in this market tilray
[149]
trades at about 200 times sales Arora
cannabis trades at about 85 times sales
[154]
so I bring this out just so we're all on
the same page we're not going to find
[159]
any value stocks in the cannabis market
that being said I still think that
[165]
there's a fortune to be made assuming we
can play it correctly so for me the
[170]
question that I was asking myself is is
there still profit here and how can we
[173]
go about achieving a reasonable profit
for the risk we're taking and investing
[178]
in something that's trading so much
further above sales or revenue or
[182]
whatever you want to call it okay so now
we know the risks of investing in stocks
[185]
like this when this market eventually
gets priced like the rest of the market
[189]
does many of these stocks are gonna fall
by like 90 percent of what they're
[193]
currently priced at that being said I do
think that if we can identify the
[198]
companies that are most likely to thrive
for many years because at the end of the
[203]
day it's only gonna be a handful of
these companies that dominate the
[207]
marijuana market and much like the tech
bubble back in the early 2000s well you
[214]
get stocks like Amazon or Google to rise
out of what happened there and look at
[219]
what those the companies are doing today
so a few of these companies are likely
[223]
to do very well but most of them aren't
going to so the time I spent researching
[228]
these marijuana stocks well I was
looking for that a handful of companies
[231]
that I thought would be leaders for many
years and ideally what would happen is
[236]
they're likely to get bought out by one
of the major players in a similar
[240]
industry a lot like the alcoholic
beverage company constellation brands
[244]
that bought a piece of canopy growth so
with that in mind let's take a quick
[250]
look at three companies that I think
will emerge from this whole mania and do
[255]
well in the long haul and then at the
end I got a few sort of runner-ups
[259]
so our first one which i think is the
most obvious one is canopy growth
[263]
ticker symbol WEED that's in Canada in the U.S. it's CGC so
[269]
this is actually where I started my
research because I wanted to know what
[273]
would lead Constellation Brands to pump
millions of dollars multi billions of
[278]
dollars multiple times into this company
right now they own about 37 or 38
[283]
percent of canopy growth and went the
last round of financing constellation
[288]
bought the option to buy more shares and
if they were to exercise that option
[292]
they would end up with a controlling
stake of canopy growth
[295]
now when constellation announced the
second round of financing going to
[300]
canopy growth the stock jumped like 30
percent so that's what we're after and I
[306]
think that this could happen to a few of
the key players and the reason I went
[310]
with canopy first is frankly they're a
bit safer having constellation behind
[316]
them as likely to put a floor under what
could happen to them from a negative
[320]
standpoint they're likely not to fall
nearly as badly as everybody else
[323]
because they have so much money behind
them and this brings us to company
[327]
number two with this one we're gonna go
with a slightly smaller company and that
[331]
company is OrganiGram ticker symbol OGI they trade in Canada so OrganiGram
[337]
only did about 12 million dollars
in revenue over the past 12 months but
[341]
that's expected to jump drastically over
the next couple of years now OrganiGram
[347]
is a producer of dried cannabis
and cannabis oil products and one of the
[351]
things that struck me about this company
is that over the past few years they've
[356]
won a ton of awards for the quality of
their products plus OrganiGram has
[362]
already gathered the necessary financing
to drastically increase the size of
[366]
their production bringing their
production to more than 110,000
[369]
kilograms per year by the end of 2019 so
what we end up with is a high-quality
[375]
producer that can make a ton of product
for me this makes a lot of sense for a
[380]
company like constellation brands or
perhaps one of their competitors to get
[384]
behind them and invest in that type of
company because if I'm a giant brand
[389]
like constellation well I don't need the
product I don't need the distribution
[393]
I've already got that what I do need is
I need a high quality product and I need
[397]
a lot of it so when I put my
distribution network behind it you the
[402]
manufacturer can produce a ton of the
product we need now this brings us to
[406]
our third company Aphria ticker symbol APHA now this is an interesting
[411]
one because Aphria got slammed coming
into 2019 and one of the key reasons is
[417]
that an analyst did a research report
and it turned out that the company was
[422]
buying assets from management at
extraordinarily inflated prices and once
[429]
the report came out while Aphria stock
dove down about 50% well since then the
[435]
CEO and one of the co-founders have
announced that they're stepping down now
[439]
fundamentally this doesn't change the
fact that Aphria is still a pretty good
[443]
business in fact just recently Green
Growth Brands announced that they're
[448]
going for an acquisition of Aphria so
it's possible that that goes through and
[453]
if it does go through out I would expect
for it to be finalized at a premium to
[457]
the current price of about 7 bucks a
share now I could have easily added
[461]
Aurora stock to this list or even TilRay
right but unfortunately TilRay of their
[467]
shares outstanding
it's like 37 percent or some crazy high
[471]
number like that of those shares
outstanding are held by short sellers
[474]
and for me that made me nervous one or
two things could happen maybe a short
[479]
squeeze comes and the stock pops because
they get driven out but on the other
[482]
side it makes me nervous that there are
so many investors that are willing to
[486]
put their money on the line that they
feel that the company is that overvalued
[490]
so I thought it was best to stay out of
it on the flip side Aurora on the other
[495]
hand I thought had a ton of potential
and I actually had it at number 3 in my
[499]
list but then when Aphria took a
nosedive at the end of the month that
[503]
just looked like a better value as much
as you can have a value in this space so
[507]
I left a Aurora off the list so this
list was a list of four instead of a
[513]
list of three well then Aurora
definitely would have made the list if
[516]
it was a list of five probably where to
gone with MedMen as the fifth company
[520]
that being said what do you think of
these companies are these the types of
[524]
companies that you would add to your
portfolio let me know what you think in
[527]
the comments below
are there any companies that I left off
[530]
the list that you think will be a leader
many years
[533]
from now let me know if you haven't done
so already hit the thumbs up don't
[536]
forget to hit subscribe and thanks so
much for sticking with me to the end of
[540]
the video and I'll see in the next video
thanks
Most Recent Videos:
You can go back to the homepage right here: Homepage