My team and I hope you’re getting ready to enjoy this holiday season — whether you’re traveling or staying home, we hope that you are safe.
It’s been an interesting year for the cannabis market.
The industry seemed destined to continue downward from a disastrous 2019 until the COVID-19 pandemic.
From March 2019 to March 2020, the ETFMG Alternative Harvest ETF (NYSE: MJ), which holds a basket of well-known cannabis stocks, dropped more than 71%.
Beginning in March 2020, states locked down. Millions of Americans were either laid off, furloughed or forced to work from home.
But that seemed to give the marijuana market a boost. Sales started to climb as dispensaries switched gears to allow for curbside pickup.
When Democrat Joe Biden won the U.S. presidential election, that further helped the industry. Investors saw his election as a potential lead-in to the federal legalization of adult-use marijuana.
So, 2020 started slow for the cannabis industry but is poised to end on a high note leading into the new year.
For perspective, the MJ ETF has moved nearly 57% higher, erasing half of its 2019 losses.
With that, we want to present some highlights from the Marijuana Market Update over the past several months.
Now, no analyst or trader can get it right 100% of the time. But we use tools — like Chief Investment Strategist Adam O’Dell’s six-factor Green Zone Ratings system — to help us get it right most of the time.
That was the case when we covered companies including Aurora Cannabis, Cresco, Curaleaf, Cronos Group, Subversive Capital SPAC and Planet 13 Holdings.
Watch today’s Marijuana Market Update to revisit some of our best calls of 2020.
In addition to the companies I mention above, we discussed the 2020 election and the cannabis industry and states likely to legalize cannabis.
Cannabis Watchlist Update
Now for an update on our Cannabis Watchlist:
- Schweitzer-Mauduit International Inc. (NYSE: SWM) — This company makes papers traditionally used in the tobacco industry. However, its products have started to find a home with cannabis users. Since I put it on the watchlist in September, the stock is up 34%.
- PerkinElmer Inc. (NYSE: PKI) — PKI tests various products on the market … including cannabis strains. I put this stock on the watchlist in September, and it’s up 18% since.
- Turning Point Brands Inc. (NYSE: TPB) — This is another traditional tobacco company whose products are finding their way to the cannabis industry. It has become our strongest performer since I put it on the watchlist in October … up 49%!
- GrowGeneration Corp. (Nasdaq: GRWG) — GrowGeneration was the first cannabis-only company I put on the watchlist. Since I did so a month ago, it has rocketed 47%!
- Scotts Miracle-Gro Co. (NYSE: SMG) — This fertilizer company was in the red for the first two months on the watchlist. Now, however, it has broken into double-digit gains, up 17%.
All told, the average total gain of our cannabis watchlist is 33%. That’s fantastic.
If you bought into these positions when I added them to our watchlist, congratulations on your gains! I see much more on the horizon in 2021.
Remember, the email address to send comments, questions and stocks you want us to examine is feedback@moneyandmarkets.com.
Where to Find Us
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Again, my team and I hope you have the happiest of holidays! We look forward to providing even more great information and analysis of the cannabis market in 2021.
Until next time…
Safe trading,
Matt Clark
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.