If you haven't noticed, marijuana stocks have Wall Street and the investors' full and individual attention. An expected 4-6-fold increase in worldwide cannabis sales over the next decade, combined with triple or quadruple percent gains in popular pot stocks over the past few years, is generally a good way to keep investors fascinated.
But there may not be any group of investors more excited about the increase of cannabis than millennia.
In addition to partly dictating the direction in the Nordic American pottery industry, their investments can also signal which marijuana shares will stand out over the long run.
According to Robinhood data, an investment app of 6 million users whose average age is 32, four of the 14 largest holdings of its users are pot shares. Rights to a list of top 20 positions from Robinhood to Investors Business Daily these cannabis stocks are:
- Aurora Cannabis (NYSE: ACB) : The No.1 Most-
- Cronos Group (NASDAQ: CRON) : The No. 6 best-selling stock.
- Canopy Growth (NYSE: CGC) : The
- HEXO (NYSEMKT: HEXO) : The 14 largest stock.
Why Aurora, Cronos, Canopy and HEXO are favorites among millennium investors
Why these four names? Well, for the first, they are really visible. All four of these marijuana shares, which are listed from the over-the-counter (OTC), exchange for a major US exchange between the end of February and the end of December 2018. Stocks every day than they were on the OTC stock exchange, and they have received far more coverage from Wall Street, which often keeps these companies in the news.
These four pot stocks are also some of Canada's largest projected producers at highest annual output. Aurora Cannabis expects to lead all Canadian growers with at least 662,000 kilograms of annual output when they work fully, followed closely by Canopy Growth by more than 500,000 kilograms a year. A little further back, HEXO sees producing at least 150,000 kilos annually after its Newstrike Brands acquisition, while Cronos Group is attached to 117,500 kilograms a year. Similarly, and not with the joint venture and royalties production, this ranked Aurora, Canopy, HEXO, and Cronos as Canada's # 1, # 2, # 6, and # 9 manufacturers at the highest exit.
There are also lots of intangible factors at stake. For example, Aurora Cannabis leads all marijuana stocks with a presence in 24 countries (including Canada). Meanwhile, Canopy Growth and Cronos Group are the two most cash-rich herds of the flock due to respective stock investments from Constellation Brands and Altria . And then there is HEXO, which clearly has landed a range of partnerships and joint ventures.
In short, these standout marijuana shares that dominate news feeds make them easy choices for millennium investors at Robinhood.
Popular does not mean profitable
Then again, it is important to remember that popularity does not necessarily equate to profitability. Of the 20 most widespread stocks on Robinhood, much money is losing or is consistently underperforming.
Stepping away from the cannabis landscape for a moment Fitbit Tesla ] Snap and Plug Power are the respective numbers 7, 9, 12 and 18 on the most durable list . Nevertheless, all companies are expected to lose money in 2019. Other popularly stored stocks, such as General Electric Ford and GoPro at No. 2, 3 and 8, make money, but have largely undergone the broad market.
Now back to marijuana shares. All four – Aurora, Cronos, Canopy and HEXO – are currently losing money and can lose money again in 2020 with the exception of HEXO. In fact, thousands of years have made a very bad decision to anoint Aurora and Cronos as two of their sex most common stocks.
While Aurora Cannabis has a wrath on production and international expansion opportunities, it also leads the package into stock-based dilution. Since August 2016, Aurora has completed 15 acquisitions, many of which were financed solely by issuing shares in its common stock, including the 2 billion shares. USD MedReleaf buyout. As a result, Aurora Cannabis has issued $ 1 billion. Shares of its common stock of less than five years, and since the beginning of 2018, the company's share price has actually fallen despite a triple in the company's market coverage ].
As for the Cronos Group, it seems to be the pound-for-pound priciest pot stock based on a handful of metrics. Aside from having received $ 1.8 billion from Altria, Cronos is hardly a top 10 manufacturer and has only a marginal presence in markets outside Canada.
With the exception of HEXO and possibly Canopy Growth, I cannot say I am particularly encouraged by millennium investment choices in the cannabis industry.