Story Highlights
This week, Canadian cannabis companies reported third-quarter earnings. The results and stocks reactions were surprising.
Here in the office, when any of us have a question about pot stocks, Anthony Planas is the first person we ask.
Anthony is so tuned in to the sector, he created an index to help us identify the best (and worst) marijuana companies at any given moment. Read on for the latest update on the index.
He also records a free YouTube video every week even a couple of weeks ago, when he was on vacation in Hawaii! where he discusses breaking news in the industry.
If you missed Anthonys free Marijuana Markets video on Thursday, check it out now!
He covered earnings reports from Canadian cannabis producers including Cronos, the worlds largest cannabis company.
These heavy hitters reports are important for cannabis investors because they tell us the direction we can expect the sector to take.
You can see the news he covered in the snapshots below but be sure to watch Anthony’s video for his take on all three companies earnings.
Now, I want to share more about Anthonys Green Flag Index.
No other company in the world has this index. If youre interested in profiting from the pot market, you need to pay attention. Its the key to getting far ahead of the crowd.
Anthony dubbed his proprietary metric the Green Flag Index.
It measures what wed pay for a company based on how much product it sells measured in kilograms produced and average price per gram.
By knowing the value of each company which is the cheapest and which is the most expensive we go a long way toward identifying the best investments.
The other crucial piece is Anthonys top-notch analysis. He blended each companys current and future production to create this index.
The higher the rating, the more you pay for shares of that producer.
After this latest batch of earnings, I asked Anthony to give us an update. (You can see his update, from October 17 here.)
Here are the latest numbers, ordered from least expensive to most.
Ive been following Anthonys index long enough to know that a stock isnt a buy just because its among the least expensive and the most expensive stocks are sometimes priced that way because theyre worth it.
When I asked Anthony what he makes of these numbers, heres what he told me:
Cronos Group holds on to the top spot for most expensive producer. While overall sales grew, the price per gram sank to near industry lows. Shares are buoyed thanks to its partnership with the tobacco-maker Altria Group. But continued weak performance threatens this relationship.
OrganiGram Holdings and Hexo Corp. are the cheapest after big sell-offs from disappointing earnings. Neither has the support from a major alcohol or tobacco partner to support operations through weak sales.
Aphria Inc. is in a good position to drive revenue growth and see positive earnings. It trades at a discount to the average of its peers.
If youre new to Winning Investor Daily or to cannabis investing, just know that the sectors taken a massive hit this fall.
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