This Pot Stock Is Positioned for New Highs
Pot stocks went parabolic in Q2.
After racing ahead and nearly recovering from the October 2018 meltdown, many pot stocks are back to square one today.
As you can see, our proprietary pot index is back down to levels we haven’t seen since the start of the year:
We’ve covered the reasons why many times through the quarter.
And we’ve also explained how the drawdown, correlated to the greater market, is simply the negative herd mentality that’s shaking scared hands out of the sector.
That’s Their Loss and Your Gain
I say this because the data tell me we’re coming up on a great opportunity this summer to pick up some shares of beaten-down pot stocks and ride them to some nice profits in the second half of the year.
After all, these market dislocations can’t last forever. And as investors, our biggest buying opportunities come when the market is temporarily failing to recognize value in a company or sector. In this case, the legal marijuana sector.
Additionally, merger-and-acquisition activity offers us unique profit opportunities while the pot sector figures out its direction.
Which leads me to your potential opportunity for today…
Perfectly Positioned for Profit
Green Growth Brands Inc. (OTCBB: GGBXF) has announced it will acquire private cannabis company Moxie in a deal valued at $310 million. According to Green Growth’s press release, the deal makes Green Growth the “first ‘360 degree’ cannabis company.”
The deal gives Green Growth a coast-to-coast footprint, including major markets like California, Florida, Nevada and Massachusetts. The deal is also a vertical supply chain acquisition, meaning Green Growth (a creator of cannabis flower products) is acquiring brand-new revenue streams as it takes ownership of Moxie’s dispensaries and mall kiosks as well as its CBD lines.
And what better way to maximize your company’s profits than by selling your own products in stores you own too, in 16 different states?
For you and your wallet… there’s a lot of long-term opportunity built into this deal.
Today GGBXF shares are down almost 5% as I write, but I think this means another chance to buy a pot stock with a strong future ahead at a discount.
And as for the 5% drop today…
We typically see the buyer in an acquisition take a hit in its share value when a deal is first announced.
In short, investors don’t like to see hundreds of millions in expenses on the books ahead of earnings season.
But that’s just not smart…
Long term, this deal looks like an incredibly strong business move.
Moxie was a successful business on its own and it should only help power GGBXF’s share value to brand-new highs in time.
For Technology Profits Daily,
Chief Technology Expert, Technology Profits Daily