Rich Runs Through the News You Need to Know About Cannabis Stocks

Cannabis Stocks

There’s been a lot of big news in the world of cannabis stocks lately. Rich jumps right into the issues that pot investors should know about—the ups and the downs—and provides a forecast for the future.

Aurora Gets Downgraded

Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB) got downgraded yesterday from “buy” to “neutral.” The decision came from an analyst at Bank of America Merrill Lynch, who felt the company has been burning through cash too quickly, and could soon become cash negative. The news caused Aurora’s stock to fall 6 percent.

Rich says there’s no reason for investors in the cannabis giant to panic. Things will turn around for Aurora shortly.

“If Aurora explodes on this next bull run that’s coming … you think that [Merrill Lynch is] not going to upgrade them again? Guaranteed after it explodes and it goes to $12 or $15 they’re going to upgrade them again, at which time it will be too late.”

Enter Your E-mail Address To Subscribe

* indicates required

He goes on to say that institutions like Merrill Lynch are quick to change the grade of a company so as not to appear wrong in the eyes of the investors who watch their every move. Analysts can upgrade a company just as quickly as they downgrade it, and seeing how well Aurora has been doing lately (it’s up 32 percent in total this year), Rich says it won’t be long before it’s back to being a “buy.”

“They’ve always been spending too much money,” Rich says. It’s part of an early-stage company’s growth.

MediPharm Labs Conditionally Approved to TSX

Big news came for MediPharm Labs Corp. (TSXV:LABS) (OTCQX:MEDIF) as it received conditional approval to graduate from the TSX Venture Exchange to the Toronto Stock Exchange. It will continue to be listed as LABS on the TSX.

MediaPharm is a leader in cannabis extraction, distillation, purification, and cannabinoid isolation with a worldwide presence.

“MediPharm labs is my number one extraction stock. I own 2,600 shares and I want more,” says Rich. He calls the news about MediPharm being up-listed “huge news.” He believes that the company will next move to a senior exchange in America.

Cannabis Stocks Coming Back in September

As RichTV Live community members know, the stock market is in the middle of the summer slump. That’s the period between May and August when stocks seem to trend gradually downwards as people hit the beaches with their families.

Rich explains that cannabis stocks, though still an exciting investment opportunity, are also experiencing the summer slump.

“I don’t really think really going to see a huge rush of volume and liquidities in the securities in this entire sector until September,” he says.

While some companies are seeing significant runs right now, like Neptune Wellness Solutions Inc. (TSX:NEPT) (NASDAQ:NEPT), which rose 18.50% yesterday, most cannabis stock are moving laterally.

“There’s six weeks left until September, and at that time it’s game on,” Rich says. “In September we’re going to see a huge rush of money go back into the markets. For now you can just pick and pop. Buy low, sell high, make some money.”

What do you think? Will you be practicing your short game this summer, or are you waiting for big movement in the fall? Let us know down below.

Featured image: DepositPhotos © [email protected]

If You Liked This Article Click To Share