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Learn To Pick The Best Cannabis Stocks

Best Cannabis Stocks – My Top Picks

Which are the Best Cannabis Stocks?  Cannabis Stocks are about to take off with Cannabis Federal Legalization. And, you may want to take advantage of this once in a generational opportunity.  So, if you find yourself asking: What are the best cannabis stocks? Then, here are the Best Cannabis Stocks.  Also, you may also be wondering how to invest in stocks and that is how you came about my website: Cannabis Investing Newsletter.  In fact, cannabis stocks represent one of the greatest investment opportunities of a generation and, with Federal Legalization of cannabis about to occur, this makes cannabis investments one of the best sectors to focus on.

Because of that, you will want to know all you can about cannabis stocks, the process of cannabis federal legalization, how to invest in stocks, and finally how to pick the best cannabis stocks.

First, Cannabis Federal Legalization will mean cannabis stocks are going up.  Cannabis companies are rolling out products throughout the United States, Canada, and parts of Europe & Latin America.  So, this means the opportunity for these companies to grow is immense.  And, cannabis stocks will go higher.  Therefore, picking the best cannabis stocks will be a big priority.

Join The discussion in the Best Cannabis Stocks Forum & Discussion

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Cannabis Investing Newsletter Forum & Discussion

Here Are The Best Cannabis Stocks – My Top Picks

1. C21 Investments: CXXIF Q3

  • Buy-In Price: $0.50
  • Target Price: $8.31

2. Decibel Cannabis: DBCCF

  • Buy-In Price: Buy NOW; Accumulate Under $0.25
  • Target Price: $1.50 – $1.75

3. High Tide: HITI Q3

  • Buy-In Price: $5.00, $6.00, & $7.00
  • Target Price: $54.90

4. IM Cannabis Corp: IMCC

  • Buy-In Price: Buy Now @ $3.00
  • Target Price: $21.50

5. Jushi Holdings: JUSHF

  • Buy-In Price: Buy NOW; accumulate from $4.00 – $6.00
  • Target Price: $7.50

    6. Lowell Farms LOWLF

    • Buy-In Price: Buy NOW; Accumulate under $1.30
    • Target Price: $32.50

    7. MariMed: MRMD Q3

    • Buy-In Price: Buy NOW
    • Target Price: $7.50 – $12.50

    8. Planet 13 Holdings: PLNHF & Next Green Wave NXGWF

    NOTE: Planet 13 Holdings is acquiring Next Green Wave.  Target price will change with new upcoming share-count.

    • Buy-In Price: $5.50
    • Target Price: $12.50

    9. Schwazze: SHWZ

    • Buy-In Price: Buy NOW; Accumulate Under $2.00
    • Target Price: $17.50 – $35.00

      10. TerrAscend & Gage Growth: TRSSF & GAEGF

      NOTE: TerrAscend is acquiring Gage Growth.  Target price will change with new upcoming share-count.

      • Target Price:
      • TRSSF & GAEGF: Buy Now.

      11. Trulieve & Harvest Health: TCNNF

      NOTE: Harvest Health is being acquired by Trulieve; New Price targets will be available post-acquisition with new shares outstanding for combined companies.  These targets are for TCNNF:

      • Buy-In Price: Buy NOW
      • Target Price: $78.50 TCNNF

      12. Verano Holdings: VRNOF Q3

      • Buy-In Price: Buy NOW; Accumulate Under $12.50
      • Target Price: $61.93

      13. Vext Sciences: VEXTF

      • Buy-In Price: Buy Now @ $0.58
      • Target Price: $2.50

      14. YourWay Cannabis: YOURF

      • Buy-In Price: Buy Now @ $0.175
      • Target Price: $2.75

      Getting Ready For The Best Cannabis Stocks & Federal Legalization

      The cannabis sector is going to see tremendous growth in revenues and profits. Because of that reason, cannabis stocks are absolutely stocks to keep track of.  And, this is a once in a generational opportunity to create significant wealth in the stock market.  But, there are some 350 different cannabis stocks.  Which stocks are the best cannabis stocks to buy now?  Who has time to sift carefully through some 350 different marijuana stocks?  No one can readily do that in any reasonable period of time.  Well, no one except me.  And, I am doing just that, and I have created this list of the best cannabis stocks to buy.

      I am sifting through some 350 different cannabis stocks to find out which are the best marijuana companies and which ones are a bust; to find out which cannabis stocks are the best marijuana stocks to buy now.  There are certain criteria that I am looking through to see which of these cannabis companies fit the most optimal criteria.

      What are the Best Cannabis Stocks?

      Best cannabis stocks with a complete list of cannabis stocks; the best cannabis stocks to for cannabis investments with cannabis federal legalizationHere are my favorite cannabis stocks.  And, here are the best cannabis stocks to buy now.  Keep in mind that I am working through some 350 different cannabis stocks to determine which actually are the best cannabis companies to buy.  I am comparing each of these stocks to each other.

      By comparing each of these cannabis stocks I can get a sense of which cannabis companies are the better performing and which are going to outpace others.  Also, I have a solid idea of which are the best cannabis stocks to buy, which are the best cannabis stocks to watch, and which cannabis stocks to avoid.

      These are my Top Picks of cannabis stocks to buy now.  Each of these cannabis companies is poised for long-term growth.  It is my belief that if you took a very long-term approach, owned a basket of these stocks then over a very long period of time, say 2.5 – 5 – 10 years, or more, you would very likely gain significantly with stock ownership of these cannabis stocks.

      I am constantly updating this listing so you should stop back on a frequent basis.

      Value Investing & The Best Cannabis Stocks

      How to Invest In Stocks and cannabis stocks with cannabis federal legalizationFirst, and most importantly, I am a value investor.  I use the same exact principles as Warren Buffet when determining how valuable a cannabis company should be.  I look at certain metrics such as Revenues, Gross Margins, Total Operating Costs, EBITDA, and Net Income.

      From these metric points, I determine which cannabis companies will outpace the others, which cannabis stocks are going to outperform other stocks.  This is the same investing methodology used by the greatest value investors of all time such as Warren Buffett, Charlie Munger, and others.

      The Pace For The Best Cannabis Stocks

      Investing For Beginners where I teach investing for beginners using cannabis stocks as the basis so that beginner investors can learn about investing in stocks and cannabis stocks and cannabis investments makes money for beginner investors for value investing using cannabis stocksCannabis stocks are going to move rapidly.  As companies begin production we are seeing revenue growth rates in excess of 100% annually.  And, while some companies may outperform an existing industry, no other industry on a whole is ramping up as quickly as the cannabis industry and outperforming the entire economy.  Also, marijuana stocks are moving higher because of it.

      The stock market is moving higher simply because of economic factors.  But, cannabis stocks will move higher at a much faster rate at some point in the very near future.  You will be able to watch some of these marijuana stocks move upwards as the industry expands.  You can keep pace with the broader industry by watching the revenue growth rates of various cannabis companies.

      The Best Cannabis Stocks & Gross Margins

      Gross Margins are the measure of how much gross profit is made from revenues after a company deducts product costs.  The only two numbers in this are total revenues less cost of goods, divided by total revenues.

      Basically, the higher the gross margins the more money is kept after a sale for the business; you want the highest possible number.  Knowing this is one of the first steps in knowing how to invest in cannabis stocks.

      Operating Efficiencies & Total Operating Costs

      What are Total Operating Costs? Total Operating Costs are those costs for running a business not associated with actually making the product (That would be determined by total gross margins).  So, Total operating costs are Sales, General, & Administrative.  Also, Depreciation and Amortization are factored from this.

      Typically, as they suggest, costs associated with sales, generally running the business, and other administrative costs such as executive payroll are deducted from this.  But, with costs such as rent, any expense for rent to manufacture a product would be deducted from gross revenues in the section above whereas rent for administrative expenses would be deducted from total operating costs.

      What remains after these deductions is total operating profit.  But, if you retain deductions and amortization, what you have is the pre-tax core business costs; this is also called EBITDA.

      EBITDA Profits

      One measure that is especially helpful to fledgling cannabis companies is EBITDA profitability.  This measure determines if the core business could be profitable and how soon that may be.

      The core business expenses, cost of goods and operating expenses typically have a fixed amount with salaries and rents.  Given that, if there is enough volume moving through the company then profitability can be achieved via economies of scale and ramped up productivity.

      Once a company achieves EBITDA profitability, the likelihood of net earnings positive increases significantly.  But, EBITDA profitability does not necessarily mean the company is profitable.  This is only one line in the financial statement (Please note: EBITDA is a very useful tool for new companies but not as useful with companies that are already profitable.  Also, although is very useful and widely used with new companies EBITDA is not a GAAP metric).

      10 thoughts on “Best Cannabis Stocks – My Top Picks

      1. What do you think about Halo Collective dividing into seperate US and non-US (Africa, Europe, and Canada) companies, with the international company to be named Akanda >
        as described in their hour long June 25 presentation ?

      2. I’m just curious how the “best bang for your buck” philosophy, enters into the picks you choose as your favorites. I mean, if a company is only a double-your-money play, like PLNHF, shouldn’t this take a back seat to a company that has a target 30 times higher than your entry? Or are you only picking according to your fundamental scheme of valuation? It’s an interesting question, since, if you believe a company will 30x your money (let’s say), but it’s fundamentals don’t look quite as nice as a 2x your money play, should the 2x play make it to your favorites, while the 30x play remains in your list of the top 100 companies? An argument could be made that the 30x play deserves more weight, when considering what companies you would actually buy. For example, if you believe Halo will survive, and grow in profitability, with an entry price today of .026, the upside there could be astronomical … especially with all the dispenseries they are throwing up. Anyway, this occurred to me, as I consider what companies to actually buy, and which ones to put more money on.

        1. Just wanted to say hello and thanks for the question/comment on the site.

          You are correct that there are times when going in on a long shot merits a lot of consideration. There are a few considerations I look for. I want to see continuously increasing revenues, no matter how a company gets there. The real stand-out for me is first, clearing EBITDA profitability. Then, with increasing revenues, and EBTIDA profitability, all a company has to do is continue increasing revenues and net profits are next. Given that, what could the company be worth from a Discounted Cash Flow point of view.

          While there are some long shots that could merit consideration, I usually try to instill a little bit of measure of safety in my considerations. All cannabis stocks are undervalued so, you don’t need to necessarily bet the ranch. And, considering the longterm prospects of some of these companies, there is going to be a lot of future growth.

          Bottom line, I consider these things but, I’m also balancing the considerations.

      3. Hello same question about halo collective, to early to answer as I have being a shareholder for 3 years now and did own 1.6 M shares until the 100-1 reverse split,
        So what do you see when they finish spitting the company in two ,now that they are away
        from the 280E ,

        1. Hey Larry… it looks like you do NOT get shares of the newly formed Akana company. Instead, Halo is simply going to sell it and then keep the proceeds for operating capital (as best I can tell).
          I still believe in the industry but, as many have put it, it is tough to stay believing in some of the things these guys do. The spin-off is one of those things. Why?
          I’d say you are in for the long haul and, it is very likely that you will see some return. But, if we see any kind of surge out of the ordinary like what we saw back in February, no reason to stay holding. Put together a plan and, if there is a big spike upwards in cannabis stocks, get out of this one and find some others that make more sense holding longterm.

      4. Dennis…
        Thanks for this.
        I am going to update each stock throughout this quarter. I just did Verano yesterday and updated the targets and buy-in pricing. As I do analysis on each of these stocks, I’ll change up what needs to be changed. For now, everything is fairly up-to-date, albeit the current stock prices are below the buy-ins.

      5. Hi D.H. Have you done an up dated list on your favorites? I like Curaleaf, Cresco and Columbia Care because they all have a number of dispensaries, seem to have good management and are down right now. I know all cannabis stocks are down now but they may come back quicker because of their holdings.

        1. @rgrace970msn-com 

          Hey Ron… Not certain why, but just seeing this posting for the first time.  I usually get alerted to new postings and am pretty good about following up.

          Yes… and even more so than back in March, cannabis stocks are being brutalized.  As for this particular list, I am working through all 110 cannabis stocks and doing DCF calculations when I can, then inputing the data into my Top Picks page.  So, I will continually be doing info on this.  

          Also, you will want to check out the posting on “Most Undervalued Cannabis Stocks” where I have a continuous update on the DCF calculations showing the latest stock prices versus my intrinsic value.  

          What I have been doing, and have been pretty good at being consistent at, is I am updating all of these pages toward the end of the week depending upon @Karolina and I doing updates to the data.  

          I may start sending out weekly emails to start the week with an update on each of these so that individuals can see the continuous updates.  

          These stocks will turn upward.  We are just waiting for the process to work its way through.  

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