WHAT ARE THE TOP MARIJUANA STOCK PICKS

my what's going on you guys Swiss Jacob welcome back to the channel and in this video I'm gonna give you guys my top 3 cannabis stock picks of 2020 alright so this is actually a follow-up to the last video I posted going over my technical and fundamental reasoning behind why I think the cannabis sector as a whole could actually see another bull rally in the second half of 2020 like it did in 2018 so you guys can check that out if you're interested but as this video states I'm just gonna go over my top three personal picks within the space alright and remember that you guys these are just my personal picks there are plenty of stocks out there they're plenty of weed stocks out there I should say but these are the three that I choose to play with these are the three that I hold in my portfolio personally that could change over time but as we go into what I think will be the second wave of of cannabis stocks doing very well these are the three that I'm choosing to play with right now okay so speaking of those three you can see them right here alright not trying to hide anything it's Chronos áfreeá and canape to be completely honest if you guys just want screen grab this or take down these ticker symbols and put them on your watch list that's completely fine but I'm obviously still gonna rationalize and give you guys my reasoning behind why I choose to play with these three okay so before we get into them one by one I'd really appreciate it if you do gain value from this video that you would give this video a like and subscribe if you're not already and you want to catch more content like this okay and if you are as always I appreciate you very much okay so that said let's get into this these stocks that I have right here so I have the three right here I have a few key metrics that I'm looking at I'll let you guys know why I think these are important and I also have my phone mirrored here okay we're gonna look at these stocks on robhinhood I feel like it's just it's just better it's more digestible that way okay it's more I feel like it's better for you guys we can kind of do this together I do have trading view open in the back I like just making these videos over the charts but I'm not gonna go into any crazy technical analysis today I'm just gonna give you a very brief rundown of why like these three stocks what my price my price predictions are for them not really price predictions but price targets are for the near future near the mid future and a single reason that I like the company fundamentally okay so first things first we have Khronos group again these stocks are not in any order I do not like one more than the other I'm playing all three I have almost equal positions in all three but yeah we'll just we'll just go over these one by one all right so first Kronos group it had an IPO price of seven dollars and 55 cents okay and the reason I have the IPO price on all of these is because I feel like that is a rational target in terms of where the price could go in the near future if this sector continues to rally all right so IPO price 755 it is currently sitting at a price of six dollars and sixty cents so six dollars and fifty and fifty four cents to be exact but yeah I think Kronos group could see actually this this IPO price looks a little weird it's rare you see this but there's a spike in the very beginning so it's actual IPO prices around 9:40 I think that is a reasonable price target their market cap is sitting at 2.3 billion okay and always remember you guys you can't find this find this info not the market cap specifically but there's a lot of good metrics underneath the stock on Robinhood so if you scroll down a little bit you can find a lot of those metrics not just for the cannabis sector but for any stock you're looking at for any company you're looking into market cap is a very important indicator in my mind because that's what determines valuation okay and I'm not gonna scroll down and show that's the reason I wrote it on here because it would show my positions and out of respect for people who are in my portfolio program I I will not show my positions but that's why I have them written down right here and again when you're whenever you're looking at a stock I think it's very important to look at market cap to determine fair valuation alright so mark Yap 2.34 billion not a crazy market cap by any means still a small market that's what you guys have to remember about the cannabis market it may seem large it may seem like a lot of people are smoking weed and again that's why the fun that's what I mentioned the fundamental reasons in my last video is so many people are smoking weed weed is definitely on an uptrend regulation is getting getting becoming more in their favor regulatory hoops that they have to jump through a becoming bigger and bigger it's easier easier for them to operate so that's a great argument for cannabis as a whole but the reason I chose Chronos as one of my top picks is because Altria so Altria if you guys are familiar with them they own marlboro they own a huge stake in Joule so they own tobacco they own smoky and consumables all right very large player a huge company owns a large stake in Chronos which is huge all right that is similar to why I like canopy we'll get to that after this of course but Altria owns a huge stake in Chronos group when you have a partner like that someone who's so well-established and has such such access and distribution already in place that's huge for your company especially one like ultra so Ultra is pretty much the ideal partner for any weed company because again they have that distribution they have access to resources they have the capital they have a strong balance sheet that they can make sure that that Chronos stays afloat and stay successful ok so that's very huge and then the second reason which is the underlying reason behind why I chose all of these companies is actually the most powerful fundamental reason in almost any company you look at today is they're profitable ok so that's very important in any stock you ever look at ok make sure this company is profitable look at their quarterly earnings look at their earnings reports like what they're saying look at their year-over-year growth and make sure they are profitable ok and they have a strong balance sheet that is so important today specifically when we were facing this economic crisis that a company has a strong balance sheet they can withstand this disc ovid coronavirus storm that we're seeing right now and they will make it through this ok when a lot of companies who are bleeding cash and are not profitable trust me there are a lot in this space or dealing with right now I want to say this to Chronos a freight canopy these are three huge players in the space ok these are three of the leaders in the cannabis space and trust me you guys I played the cannabis bubble of 2018 pretty successfully but if there's one single lesson that I would take out of that it's don't chase the shiny objects okay there are so many companies at that time you can see this is what the bubble looked like that's why I wanted to bring this up I want to show you guys the five-year charts of all these stocks so you guys can see how crazy and ballistic these stocks went in 2018 and 2019 okay and at this time when this was going crazy they're literally companies changing their names like putting weed in the title or cannabis in the title of their of their company names completely pivoting just to hop on this wave okay it was a crazy time there are a lot a lot of bad actors in the space but they were they were doing well their price was doing well they weren't doing well but their price was okay so be careful with shiny objects you guys if we do see another bull run this is kind of happening in the vaccine sector right now to be honest there's a lot of shiny objects a lot of claims being made in the space but always look at the fundamentals so the financials I should say of the companies specifically make sure they're doing real tangible things all right and that's what Chronos group is doing that's why it's one of my picks that's why all these are my picks okay I want to play with the well-established players I don't there are plenty of other good companies out there don't get me wrong they're gonna be companies that do well or I should say stocks that do well companies that say they're doing well but always just be careful you guys really do your due diligence really do your research on a company before investing it that applies to every stock you ever look at all right so the second is áfreeá ticker symbol APHA will type that in on show so áfreeá boom again these all did well this week that's what encouraged me to make these videos now is because I think we're seeing a resurgence sorry about that in these cannabis stocks okay so but all the years look like this so Africa down 40% on the year Africa is actually down 67% of from its IPO price so áfreeá would probably to be honest I know I said I didn't I didn't tear these but áfreeá would probably be my number one cannabis stock pick okay if I could only invest in one stock in the cannabis sector it would probably be a Fria they they IPO to 1214 and I want to tell you guys why the IPO price is important okay so this was 2018 the wheat industry as a whole in 2018 was way less developed no one it was still kind of the what not the Wild West at that point definitely the Wild West for weed weed company's IPO though and becoming public alright so almost all the weed companies went public in 2018 alright and when something when a stock goes public this is just investors 101 want to stock IPOs initial public offering there are typically bankers there are very specialized individuals analysts who go over a company's financials and determine their worth all right so if and again this can be skewed there can be bias involved this can be shady sometimes but for the most part this is a pretty fair valuation and again because I feel like so many stars are aligning aligning for cannabis right now fundamentally people more people are smoking weed again like everything I said earlier and in my other video I think that IPO prices in 2018 are more than fair today okay so what a company was worth in 2018 again things change the world has changed obviously but I do think with that because cannabis as a whole is seeing such strong momentum that we could easily see it get back to what was once deemed a fair price okay so my price target for a Fria is $12 ish okay I wouldn't be surprised if it gets back up to like $10 10 $11 but I think it will hit double digits if we do see the cannabis market rally again so that's a great return considering it's $4 right now okay and Africa's market cap is only at 1 billion dollars so it's a smaller company than all three of these all right so a free would only have to double to get to the side of the pro nose and it would have to 7x almost to get to the size of canopy which is the third pic alright so again yeah market cap is small that's good the smaller market cap is the more likely the I shouldn't say the more likely but the easier it is for a share price the individual share price to go up because it takes less inflow of capital to cause that share price to go up okay my reason my single fundamental reason for Africa is because they have a strong quarter-over-quarter growth in a strong balance sheet which means they're profitable again that's the underlying theme in all three of these companies is they have strong balance sheets they can weather storms in this hard time and they're profitable okay so that's huge again always look at companies earnings always look at the financials before investing at them in them don't chase the shiny object I can't reiterate that enough all right let's get to the third pick which is canopy growth this is the largest single player in the weed market okay this is the largest publicly traded weed company in the world with a market cap of just under seven they're currently sitting at $19.50 which we'll look at on here CGC canopy growth okay and they had a great week as well okay up almost twenty percent on the week but look at that yearly okay the yearly is down almost sixty percent again for their previous Hyatt this is what like canopy climbed to a high of fifty dollars at one point okay it's training it twenty now so again this was obviously a bubble I do want to say which I should have said in the beginning to be honest I don't think that any of these stocks aside from a Fria will hit these highs okay this was so obviously a bubble these companies were so ridiculously overvalued that I don't think investors will make the same mistake twice they've learned their lesson but I do think that these companies can get to their IPO prices in canopy's case which is $29 okay so City currently sitting at $19 I P o price was $20 that's what was deemed fair by the analysts who priced it at the time and again their fundamentals are great they have a strong balance sheet they have cash on hand and the main reason I like canopy is because Constellation Brands owns a large stake in the company so I mentioned this very briefly earlier earlier when we're talking about Altria so Altria owns Marlborough jewel they own smoking they own nicotine Constellation Brands owns Corona they own a lot of spirits own liquors they own alcohol okay but the same thing applies it's not as directly applicable as all tree is but they own addictive kind of party party properties all right they they have the distribution they're super huge company all right look at Constellation Brands they're publicly traded company fortune 500 company very straw they're powerhouse in the consumable space okay so they have that distribution they have the network they have the framework to be able to propel canape growth as far as they possibly can okay there's it's no it's no it's not just by chance that canopy growth is the largest publicly traded weed company okay when you're with a powerhouse brand like constellation there's there's a lot of momentum behind you alright you have a lot more leverage and just a head start ahead of all the other companies playing in the space okay so that's huge for canopy growth very bullish in my mind again we'll wrap it up there again guys trust me just don't chase the shiny objects in this space even from my last video I have a lot of people hitting me up about these smaller companies I used to play with all of them trust me I've probably held almost every every weed company that's gone public at one point in my investing career but I just choose to play with the well-established ones they're the safest bet if this sector does go up these guys will be the leaders I'm very confident that again this is not financial or investment advice is only what I'm doing always go do your own research okay go do your own research look into these companies for yourself and hey maybe you'll find some better companies I don't doubt that there will be companies whose stocks perform better than this but these are the three safest plays in my opinion and these are the ones I feel comfortable having in my portfolio and recommending to you guys okay so we'll call it there you guys um I know I did mention how I was I wasn't scrolling down to show my positions because I want to respect the portfolio product I have so if you guys want to check that out it's a it's literally just a complete rundown of my entire portfolio so not just weed not cannabis but my entire portfolio all my options stock holdings cryptocurrencies etc so you guys can check that out I updated every every trading day so this Monday is actually Memorial Day so I will not be updating event but Tuesday to Friday any trading day literally I update it I send out an email newsletter talking about all my trades and why I made those trades so you guys can check that out if you were interested in that at all and it really helps me help you and help support the channel and encouraging me to keep making this content okay so that said I really do appreciate you guys always remember and take action make waves in these markets until next time peace later guys