Cannabis Cash Weekly Update: Improving Action in the Cannabis Sector

I mentioned last week that I expected money would come back into the cannabis sector, and we saw the beginnings of that as the ETFMG Alternative Harvest ETF (MJ) gained 2.3%.

Weekly Issue Aug 31, 2020 Hi Savio, Cannabis stocks had a solid week as the S&P 500 rallied to a new all-time high. I mentioned in last week’s issue that I expected that money would come back into the sector, and we saw the beginnings of that as the ETFMG Alternative Harvest ETF (MJ) gained 2.3%. It was also a strong week for the market, as the broad-based S&P 500 index closed up all five trading days last week and rallied above 3,500 for the first time ever. The action in the overall cannabis sector and MJ has improved, and if the ETF can rally through $13, it could be the start of a sizable rally. I anticipate the industry will head higher in the coming months leading up to the election. We start this week with two open positions in the portfolio. Village Farms International (VFF) closed last week at $5.69, above the $5.53 cost basis. The stock rallied after announcing that its 60% owned subsidiary, Pure Sunfarms, began delivering cannabis 2.0 products in Canada. The stock also got more attention after Raymond James put a $27 price target on the company – yes… 375% above current prices – if it were to increase its stake in Pure Sunfarms to 100%. Even without that hypothetical scenario, the firm still anticipates a 146% move to $14. I would like to see a rally to the $6 area – which is the next potential breakout point – to sell our next covered call and collect our next payout. Akerna (KERN) is the other position in the portfolio. It closed last week at $6.16, below the $8.25 cost basis. Similar to Village Farms, we want to see some good news and a rally in the stock to sell our next covered call. And with the action in the cannabis sector increasingly favorable, I hope we’ll get good opportunities to add at least one new position this week. I’ll be in touch as soon as it’s time for us to move. Have a great week. Until next time, Matt McCall Editor, Cannabis Cash Weekly Aug 31, 2020 07:25:50.036 CUSTOMER SERVICE You can reach us via the following e-mail address: Feedback@InvestorPlace.com or by calling us at 1-800-219-8592. Copyright © 2020 InvestorPlace Media LLC 1125 N. Charles St, Baltimore, MD 21201 All rights reserved. No portion of the above message may be republished, retransmitted or forwarded without express written consent from InvestorPlace Media LLC. Violation of this copyright may result in service cancellation and/or collection of full or partial subscription charges from unauthorized users. Use and/or reliance on this service is strictly at the subscriber’s own risk. InvestorPlace Media LLC will not be liable for the acts or omissions of any third party with regards to delay or non-delivery of Inner Circle. InvestorPlace Media LLC shall not be liable for incidental, indirect, special or consequential damages or for lost profits, savings or revenues of any kind. Thank you for subscribing to InvestorPlace.com. Please note that we cannot be liable for any missed bulletins caused by overzealous spam filters. To ensure that you continue to receive this valuable part of your service please take a moment to add (customerservice@exct.investorplace.com) to your address book.