Dear Seed Investor,
If buying great stocks was all that mattered to investing successfully, you’d be rich.
Finding companies with years of growth of ahead of them is relatively easy.
Knowing when to buy a great stock is often more important than which stock to buy.
In marijuana stocks, this is especially true.
It’s also relatively easy too.
The marijuana bull market has been running for a couple years now and we have access to historical data to pinpoint the best time to buy a great marijuana stock.
The Seed Investor has analyzed the biggest and most lucrative runs in marijuana stocks over the past couple of years.
We found three ideal entry points – Good, Better, and Best.
If you are to stick to just these three entry times, you will be able to bag the big winners consistently.
Here are all three of the historically proven ideal entry points for marijuana stocks.
GOOD Time To Buy A Marijuana Stock
This one is going to be counterintuitive to most investors. But the data shows it’s a good time to buy marijuana stocks.
It’s buying in after a major announcement or event.
For example, Canopy Growth (CGC) is the world’s largest marijuana company.
It’s literally the $16 billion gorilla in the room.
Its shares have soared from less than $2 in 2016 to more than $46 in 2019.
Although the long-term run for Canopy was great, the stock hasn’t always been a good buy.
For example, most of 2018 was a tough year for Canopy Growth shares.
The stock started the year at $33. It steadily slid down to $24 by August and handing investors a potential 27% loss.
However, everything changed in August. Canopy announced it received a staggering $4 BILLION investment from Constellation Brands (STZ), the maker of top beer brands Corona and Modelo Especial.
It was the largest single investment to date, showed how mainstream marijuana was becoming, and how other industries were willing to pay a high price to get in on it all.
Canopy shares jumped 33% on the news from $24 to $32 immediately following the announcement.
But here’s the thing that’s important.
Canopy shares kept on running up from there.
After hitting $32 on the day of the announcements, they hit $40 within a week. Then $50 after another week. Then they peaked at nearly $60 just about two months later.
All in all, that would have been an 84% in just two months buying after the news.
Pretty good, right?
It was good and it is illustrative how marijuana stocks run after major news events.
But there are better times to buy marijuana stocks.
BETTER Time To Buy A Marijuana Stock
A better time to buy marijuana stocks is leading up to a known catalyst event.
These catalysts send investors flocking to marijuana stocks and send marijuana stocks surging.
The key is to be in before they come chasing in around a known catalyst event.
There are many examples of this. One of the best examples is when Canada fully legalized marijuana.
This was not a surprise event.
Canada told the world it was going to legalize marijuana on October 19, 2018 months in advance.
The Cannabis Act which legalized it was winding its way throughout Parliament and passed major votes in May and June of 2018.
However, marijuana stocks were going nowhere at the time.
After all, it was May and June and October was months away.
However, if you bought when the final law was passed and waited for legalization in October, you would have made huge gains.
Between May and October the Canadian Marijuana Index rose 33% and many marijuana stocks did far better.
It’s a simple idea, but it works consistently.
Wall Street is incredibly short-sighted.
You’ve seen overreactions to bad earnings reports and other bad news and checked back a few months later only to see the stock has fully recovered.
It happens all the time and it will continue to do so because waiting three, six, or nine months for a known catalyst event is an eternity for Wall Street.
They would rather rush in a few weeks before and during the catalyst.
Smart investors buy well before them and are in place before they drive stock prices higher.
This simple strategy paid off in 2016 before the state elections which legalized marijuana in five new states and again in 2018 leading up to Canada’s legalization.
These events were known months in advance and marijuana stocks rose steadily in anticipation of these events.
It will happen again with plenty more catalysts (i.e. total U.S. legalization) to come for the marijuana industry.
In the end, buying before a known catalyst hits is a better time to buy marijuana stocks, but here is still an even better time to buy.
BEST Time To Buy A Marijuana Stock
The hands-down best time to buy marijuana stocks is right after it goes public.
New marijuana stock “IPOs” are crushing it these days.
In the last few months we’ve watched shares of the newest marijuana companies to hit the public markets absolutely soar.
Early buyers could have scored big and fast gains in:
Slang Worldwide – 64% in two days
Curaleaf – 58% in two days
Fire & Flower – 67% in a week
PLUS Products – 104% in ten days
DyoniMed – 120% in less than three weeks
Cresco Labs – 130% in less than three months
Transcanna – 237% in less than a month
Note: these are just from the last few months. There are dozens more examples out there.
The trend is the key in all of this.
The best time to buy marijuana stocks is right after they hit the public markets.
The Seed Investor will be tracking all scanning the markets for all three of these buying windows closely to get you in on the next ones.
The Seed Investor
MJShareholders.com is the largest dedicated financial network and leading corporate communications firm serving the legal cannabis industry. Our network aims to connect public marijuana companies with these focused cannabis audiences across the US and Canada that are critical for growth: Short and long term cannabis investors Active funding sources Mainstream media Business leaders Cannabis consumers