These Pot Stocks Should Rip Higher Following Georgia Runoffs
This week we saw the outcome of the Georgia Senate sweep, giving Democrats control of the White House and now Congress for at least the next two years.
And there’s a formerly beaten-down sector that has been on fire, mostly since the 2020 election: I’m looking at pot stocks for 2021.
And before I get to my personal picks to reel in profits, I will say this is just the beginning of the sector’s rise.
Why Pot Stocks are Hot for 2021
WealthPress’ Jeff Yastine
With Democrats in control of both chambers of Congress, it will mean a more favorable backdrop for the pot industry — and pot stocks for 2021… and beyond.
Think federal legalization… new banking laws…
But I think there’s more to this story than just that.
I have shied away from pot stocks before 2021 as far as owning or recommending them as good investments. Mainly because most cannabis companies have been big-time money losers.
I recommended my first pot stock to watch about a year ago when they were in a major downturn. At the time I called it the “pot stock apocalypse,” and I suggested buying Innovative Industrial Properties (NYSE: IIPR). It’s a real estate company that buys and rents out cannabis warehouses and grow farms.
I liked IIPR because it was generating substantial, growing profits on a consistent basis.
Here’s what I wrote one year ago this week…
“If investors are still willing to assign a P/E ratio of 44 to the stock a year from now, and the company hits its earnings projections of $4.04 (a share in profits), that gets us a stock price of $177 — a gain of 128%.”
Lo and behold, IIPR’s stock price one year later is… $177!
Nailed it!
They don’t all turn out that way, of course. But it’s nice when they do. It shows the benefits of focusing on a company’s value relative to profits… opposed to relying on the story a company or industry tells about itself.
So here’s what’s interesting about pot stocks in 2021: Some companies are actually profitable! Or at least on the verge of being so…
Watch my short video and let’s talk about names like Canopy Growth (Nasdaq: CGC), Aphria (APHA), Tilray (TLRY) and one over-the-counter stock — which I normally avoid — that I like.
And as always, send your investing questions to jeff@yastine.com. Be sure to subscribe to my new YouTube channel to see all my videos. You can also follow me on Twitter and Facebook.
P.S. Say Goodbye to ‘Buy and Hold’
We’ve all heard that buy-and-hold strategies are the surest way to make money in the stock market…
But we’re here to tell you that’s simply not true.
In fact, one Wall Street insider just revealed the secret to making triple-digit gains on stocks like Facebook Inc. (Nasdaq: FB) and Apple Inc (Nasdaq: AAPL)… in as little as 24 hours.
Stop waiting years for your investments to pay out when you can start enjoying potential returns today.