The Monthly Report Rolled by Stake – April 2019

A look into the future?

If you're reading this you probably have some belief in the future of the Marijuana industry. You're fully aware the industry is in its infancy but how much room is left to grow?

Only 2 countries have legalised recreational weed usage: Canada and Uruguay. Only 40 more allow cannabis intake for medicinal purposes. So what does the market look like post legalisation? Does the novelty quickly wane? Does supply outstrip demand for a plant many can grow at home?

In Uruguay, 5 years after legalisation, there are still queues out the dispensary doors despite the layers and layers of regulation. Buyers have their fingerprint scanned before every purchase to ensure they haven't passed their monthly limit and are forced to pay in cash. Some international banks simply won't accept proceeds from the sale of marijuana…yet.

The country is also preparing to export its first batches of medicinal marijuana to Germany- a six-tonne batch expected to grow to 400 tonnes annually.

You aren't the only one who may believe in this market. Aurora Cannabis, a US$10b market behemoth, agreed to purchase ICC Labs, one of Latin America's biggest producers for ~AU$300m at the end of last year. The best may be yet to come.


April's top performers

A mixed month for pot stocks but as always, there were a few shining lights. HEXO and IIPR returned to the list while ZYNE has flown to the top.

Top 5 Pot Stocks for April (by monthly performance):

  1. Zynerba (ZYNE) +114%
  2. Canopy Growth (CGC) +22.48%
  3. Hexo Corp (HEXO) (+22.16%)
  4. Innovative Industrial Properties Inc (IIPR) +8.72%
  5. Corbus Pharma (CRBP) +1.09%

 

By fate or by DeZyne?

 

 

Zynerba Pharma's has been flying through April on the back of positive results from recent trials. Zygel, the company's current focus, is a "non-euphoric cannabinoid" being used to treat those with autism. The company hopes to prove that Zygel can reduce epileptic episodes in sufferers.

 

 

Chopping it up…and putting it back into one

Can't decide which you like most? There's an ETF for that. ETFMG Alternate Harvest ETF (MJ) bundles many of the stocks above plus many more to track the marijuana industry's gains.

 

 

Recent inclusion on the NYSE makes the fund even more accessible to everyone…you can quite literally have a stake in them all.  This ETF is one of the most popular with Stake investors, finishing the month of March as one of the top three traded ETFs.

 

Who's buying and selling?

We've broken down recent trading data on Stake and it's the Gen Ys. Those between 25 and 34 are making gains and the most likely to invest in marijuana names.  Although there is still interest along with the age groups, with the average age of a pot stock trader being 41 years old.

Some Stake Stats from the past couple of months include:

  • ACT is still the leading state as a proportion of traders
  • Other states are catching up, specifically VIC
  • Gen Ys are still leading the charge
  • Some of the smaller names in the game (Zyne and Corbus) led the charge in the past month but traders stuck with their old favourites
  • CGC and Tilray still most traded
  • Zyne and HEXO doubled their trades in April from March

There's a distinct location that stands out…the ACT (Australia's Capital Territory) which has had some of the most progressive regulation on marijuana in Australia, which has the highest proportion of the Stake investors taking up the pot names.

 

The Month Ahead

May will bring further clarity to the booming cannabis industry, as many of the biggest hitters will be reporting their earnings and updating investors on market conditions in the US and Canada. In Canada, retail is set to improve with more retails stores being added (and coming online) in the largest Provinces. And finally, to the US, where one of our favourite Licensed Producers is set to make its debut on the NASDAQ.

Full a full review of the month to come, and what to expect when the companies announce their earnings, read our May Mayhem post.

 

Want in on the action?

If you want to get in on the action, check out Stake. You can open a brokerage account in less than 5 minutes and be in the market that same day trading any of the stocks we've mentioned here.   

Sign up using the code TGF2019 and Stake will send you a sick Hello Wall Street t-shirt when you fund your account with more than $2500 within 7 days of signing up.

 

The House takes Nothing

We connected with the online broker Stake in early 2019, as so many of our users didn't have a simple place to get into the sharemarket and buy (and sell) weed stocks.

The Green Fund doesn't get anything from Stake for plugging them.  We just love what they're doing. However, we were able to arrange that you get something when you get into the market with Stake

Sign up using the code TGF2019 and Stake will send you a sick Hello Wall Street t-shirt when you fund your account with more than $2500 within 7 days of signing up.

Until next months folks!

Mark Bernberg
Mark Bernberg

Mark Bernberg is a long-time cannabis investing enthusiast and founder of The Green Fund, Asia Pacific's preeminent media house, positioned at the forefront of the global cannabis industry.

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