This sector could make a dramatic turnaround by attracting a new type of investor.
This sector could make a dramatic turnaround by attracting a new type of investor.
Now is a fantastic time to get into the sector and be part of the rotation that is bringing value investors to marijuana stocks.
You are receiving this email because you subscribed to Outsider Club.
[Click here]( to manage your e-mail preferences.
[Outsider Club logo]
The New Type of Marijuana Investor
[Adam English Photo] By [Adam English](
Written Nov. 05, 2019
There is no denying that this year has been rough for marijuana stocks.
After last year, when investors put $10 billion into the new sector and drove share prices higher and higher, it was bound to happen.
You don't have to look any further than the ETFs that have popped up. The more established ETFMG Alternative Harvest ETF is down around 20%. Some of the ones that debuted this year are down as much as 45%.
But those numbers are starting to mask a rotation that not only shows that the sector could make a dramatic turnaround, but is also attracting a new type of investor.
[Ignore Cannabis Right Now](
Ignore cannabis right now and you’ll regret it for the rest of your life.
This is your one chance to turn $5,000 into over $100,000.
[If you don’t believe me, watch this.](
Value investors have a unique opportunity in a sector that has been all about explosive growth to date, and it looks like the savvy ones are making moves.
First, we have renewed interest in the sector as a whole. That is apparent from an uptick in investor money coming into it.
As Pat Keon, a Lipper senior research analyst, noted, “ETFMG Alternative Harvest ETF has taken in just over $500 million in net new money for the year to date, which accounts for over half of the ETF’s current assets under management of $800 million.”
Essentially, this has become a large rotation, as existing investors sell shares to a new wave of marijuana investors.
With short-term outlooks mixed and middle- to long-term outlooks as strong as ever, this most likely represents an influx of investors with a more patient outlook.
Mark Your Calendar: November 13, 2019
That’s the day everything will change...
A stunning new technology will be announced...
It’s already garnered the interest — and investment — of billionaires like Larry Ellison, Peter Thiel, and Jeff Bezos.
Some of the largest institutions on the planet are in, too...
- Fidelity
- Blackrock
- Vanguard
- JP Morgan
You owe it to yourself to at least take a look...
The course of human history will once again shift.
This is your chance to make a mint in the process. [Click here now for the full report.](
As for those short-term outlooks? They mostly have to do with funding. The indiscriminate decline across the board has put many companies in a position where they will have to raise money at unfavorable terms.
That also creates an opportunity for investors who can do the due diligence and find the ones that aren't burning cash as quickly or have enough to weather it out.
Alan Brochstein summed it up well in an article for Forbes:
"Many companies won’t make it or will have to raise capital on extremely unfavorable terms that will substantially dilute shareholders, as they aren’t adequately capitalized. Investors are quickly figuring this out, and the broad selling has certainly hurt the companies with high cash-burns and weak balance sheets the most.
"With that said, the aggressive selling over the past seven months has impacted companies that appear to be adequately capitalized as well. The cannabis industry has attracted many growth investors over the past few years, but the steep decline across the board has left some companies that I think should appeal to value investors."
[Cannabis Is Taking Over Big Pharma...
Three Cannabis Stocks to Buy Now](
For decades, big pharmaceutical companies have known about the medical benefits of cannabis and worked very hard to keep that information from ever going public.
But now the last government blocks are crumbling and cannabis is bursting onto the scene.
[THREE tiny cannabis companies]( are set to grow 80X thanks to the cannabis market's new freedom.
Of course, the devil is in the details, and the details are challenging to interpret.
While the baby has definitely been thrown out with the bathwater, value investing takes a lot of time, effort, and expertise.
The headline metrics, like price to earnings, EBITDA, and so on, simply aren't enough on their own.
It takes a deep knowledge of what the companies are doing and how it will pan out over time.
No company will say in a quarterly presentation that it is about to dilute current shareholders into oblivion. But companies do that all the time.
A lot of companies in the marijuana sector are going to do it unless their share prices shoot up overnight.
Now is a fantastic time to get into the sector and be part of the rotation that is bringing value investors to marijuana stocks.
Just do yourself a favor and make sure you have [the best information available.](
Take care,
[Adam English]
Adam English
[follow basic]( [@AdamEnglishOC on Twitter](
Adam's editorial talents and analysis drew the attention of senior editors at [Outsider Club](, which he joined in mid-2012. While he has acquired years of hands-on experience in the editorial room by working side by side with ex-brokers, options floor traders, and financial advisors, he is acutely aware of the challenges faced by retail investors after starting at the ground floor in the financial publishing field. For more on Adam, check out his editor's [page](.
*Follow Outsider Club on [Facebook]( and [Twitter](.
Enjoy reading this article? [Click here]( to like it and receive similar articles to read!
Browse Our Archives
[Our Time Is Coming](
[This Last Rate Cut Better Be Magical](
[Hard Truths for Gold Investors](
[The U.S. Should Take Notes](
[I Don't Have to Tell You Things Are Bad](
---------------------------------------------------------------
This email was sent to {EMAIL}. It is not our intention to send email to anyone who doesn't want it. If you're not sure why you've received this e-letter, or no longer wish to receive it, you may [unsubscribe here](, and view our privacy policy and information on how to manage your subscription.
To ensure that you receive future issues of Outsider Club, please add newsletter@outsiderclub.com to your address book or whitelist within your spam settings. For customer service questions or issues, please contact us for assistance.
[Outsider Club](, Copyright © 2019, [Angel Publishing LLC]( & Outsider Club LLC, 111 Market Place #720, Baltimore, MD 21202. For Customer Service, please call (877) 303-4529. All rights reserved. [View our privacy policy here.]( No statement or expression of opinion, or any other matter herein, directly or indirectly, is an offer or the solicitation of an offer to buy or sell the securities or financial instruments mentioned. Angel Publishing and Outsider Club does not provide individual investment counseling, act as an investment advisor, or individually advocate the purchase or sale of any security or investment. Subscribers should not view this publication as offering personalized legal or investment counseling. Investments recommended in this publication should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company in question. This letter is not intended to meet your specific individual investment needs and it is not tailored to your personal financial situation. Nothing contained herein constitutes, is intended, or deemed to be – either implied or otherwise – investment advice. Neither the publisher nor the editors are registered investment advisors. This letter reflects the personal views and opinions of Nick Hodge and that is all it purports to be. While the information herein is believed to be accurate and reliable it is not guaranteed or implied to be so. Neither Nick Hodge, nor anyone else, accepts any responsibility, or assumes any liability, whatsoever, for any direct, indirect or consequential loss arising from the use of the information in this letter. The information contained herein is subject to change without notice, may become outdated and may not be updated. Nick Hodge, entities that he controls, family, friends, employees, associates, and others may have positions in securities mentioned, or discussed, in this letter. No part of this letter/article may be reproduced, copied, emailed, faxed, or distributed (in any form) without the express written permission of Nick Hodge or the Outsider Club. Unauthorized reproduction of this newsletter or its contents by Xerography, facsimile, or any other means is illegal and punishable by law.