3 Weed Stocks To Put On Your Radar
Marijuana stocks have been on the rise ahead of legalization initiatives on ballots in nine states in November. However, a number of stocks have not participated in the rally.
With nearly every marijuana stock trading on the oft-dangerous over-the-counter markets, it can be difficult to determine which stocks are still a bargain and which stocks have been left behind for good reason.
Alan Brochstein, Marketfy Maven and author of “420 Investor,” joined PreMarket Prep on Friday morning to discuss two stocks he believes still offer investors strong value.
Brochstein’s first pick is Indoor Harvest Corp (OTC: INQD). According to Brochstein, there are several reasons why Indoor Harvest remains undervalued. First, the company doesn’t have the word “cannabis” in the title, which means it is not on the radar of many marijuana investors. Second, the company has a track record of questionable financing decisions, including the conversion of debt management said it would never convert.
Since that time, Harvest Crop has refinanced its debt and eliminated the “ticking time bomb” concern. Friday, the company has a $7 million market cap and a partnership with CANOPY GROWTH CORP COM NPV (OTC: TWMJF), Canada’s largest marijuana company.
“That’s one I think was late to the game,” Brochstein said of Harvest Corp. “It went the wrong way when a lot of these other stocks were rallying.”
The other stock that Brochstein mentioned is MassRoots Inc (OTC: MSRT).
Like Harvest Crop, MassRoots also has financing skeletons in the closet.
“They had a convertible note that blew up on them, but at the same time they also did a $5 million capital raise at $0.50/share with $0.90 warrants,” Brochstein explained.
He noted that there has been a lot of technical pressure on the stock and that he’s not quite as confident in MassRoots in the long-term. However, he added that the stock could have tremendous upside if the company is able to secure advertising dollars from cannabis companies.
“This is the kind of company that hasn’t yet doubled, tripled, quadrupled, but there’s probably an opportunity,” Brochstein concluded.
Listen to the entire interview with Alan at 33:47 in the clip below.
PreMarket Prep is a daily trading ideas show that focuses on technical analysis and actionable short term trades. You can listen to the show live every morning from 8–9 a.m. EST here, or catch the podcast here.
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