On Monday afternoon at 3:02PMEDT, NIA announced Cannabis Wheaton (TSXV: CBW) as its #1 marijuana stock suggestion for the next 6-12 months at a price of $1.12 per share and it rallied big into the close to finish at $1.22 per share on record volume of 3.5 million! CBW hit its high of the day of $1.27 per share at 3:59PMEDT! CBW reached a major technical bottom in the morning and we expect it to explode to the upside in the days ahead.
Since August 2015, the 26 largest publicly traded marijuana companies have seen their total USD market cap rise from $412.78 million to their current level of $3.695 billion for an increase of 860.56% in 21 months!
The recent boom in marijuana stocks has been led by two companies: Canopy Growth (TSX: WEED) and Aurora Cannabis (TSXV: ACB). In August 2015, WEED and ACB were trading with USD market caps of $64.42 million and $25.71 million, respectively – for a combined market cap of $90.13 million equal to 21.8% of the industry’s total valuation. (Back then, WEED was known was Tweed.)
Today, WEED and ACB are the world’s #1 and #2 largest publicly traded marijuana companies with USD market caps of $963.22 million and $519.01 million, respectively – for a combined market cap of $1.482 billion equal to 37.4% of the industry’s total valuation.
Over the last 21 months, the market caps of WEED and ACB have increased by a stunning 1,395% and 1,919%, respectively. In comparison, the average market cap of the next 24 largest publicly traded marijuana companies has increased by 445% during this time period.
The Founder and CEO of WEED (formerly Tweed) who was responsible for growing it into the world’s largest marijuana company is Chuck Rifici. After WEED achieved major success, Chuck left the company and became a major shareholder and Director of ACB and helped build it into the world’s second largest marijuana company.
One week ago, Chuck announced that he has resigned from ACB to become the new CEO of CBW. Currently, CBW has 150.86 million shares outstanding for a market cap at $1.22 of only CAD$184.04 million (USD$135.02 million).
Earlier, we mistakenly underestimated CBW’s short-term upside potential by comparing its CAD market cap to the USD market cap of WEED and ACB.
Priced in CAD, WEED and ACB are currently being valued at $1.313 billion and $707.41 million, respectively. For CBW to achieve a CAD market cap of between $707.41 million and $1.313 billion, it will need to rise to between $4.69 and $8.70 per share. This means CBW has the potential to rise between 284.4% and 613.1% from its current price of $1.22 per share!
CBW is the world’s first marijuana streaming company and the only marijuana stock that NIA is bullish on in the entire market. A few days ago, Chuck said in an interview, “The markets are frothy, a lot of people are raising a lot of money, but for your average licensed producer it’s still hard to get capital.” CBW is signing streaming deals with many small/mid-sized marijuana growers in Canada and providing them with financing in return for a percentage of their marijuana production and an equity stake in the company.
By executing this same business strategy, NIA’s first ever silver stock suggestion Silver Wheaton (SLW) has become the world’s largest silver company with a current market cap of $9.21 billion. Since 2010, SLW has earned a cumulative net profit of $1.959 billion vs. the next nine largest silver mining companies reporting a total cumulative net loss of $2.879 billion.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. This message is not a solicitation or recommendation to buy, sell, or hold securities. NIA has been compensated by CBW $20,000 cash for a one-month investor relations contract. Never make investment decisions based on anything NIA says. This message is meant for informational and educational purposes only and does not provide investment advice.