This week was a rough one for slow-burning Canadian marijuana stocks. Headlines of big-name companies’ miserable earnings dominated financial media coverage. But don’t let Cronos Group’s (NASDAQ:CRON) revenue miss and the post-earnings drop in CRON stock get you down. In this week’s episode of “Moneyline,” Matt McCall is here to reassure you that the long-term potential is still there. For now, you may just want to look to our home-grown American pot companies.
Earlier this week, Cronos reported adjusted losses per share of 2 cents, actually beating estimates. But it seems like investors were more concerned with CRON’s revenue of $10.1 million, which missed estimates of $10.45 million.
For McCall, the biggest problem with CRON stock isn’t its short-term performance. Heck, in the next five years, he’s positive that marijuana will be legal at the federal level in the U.S. That will be a huge catalyst for struggling stocks. But to him, that doesn’t completely justify Cronos’ $2.2 billion market capitalization.
But just across the border in the United States, two marijuana stocks reported earnings worthy of even short-term optimism. Acreage Holdings (OTCMKTS:ACRGF), most famous for its pending deal with Canopy Growth (NYSE:CGC), reported revenue of $22.4 million. What’s the catch? Acreage’s market cap is just $340 million. And Charlotte’s Web (OTCMKTS:CWBHF), one of McCall’s favorite companies, reported the upcoming opening of a 136,000 square foot facility. That shows it’s clearly ready to keep scaling.
So don’t let the headlines ruin your high just yet. As U.S. politicians debate federal legalization and the Food and Drug Administration works on reviewing the medical benefits of cannabidiol, investors should sit back and give marijuana stocks some time.
So, maybe you don’t like marijuana stocks or pot in general. But what if you’re an avid coffee drinker? Earlier in the year, McCall visited China to do boots-on-the-ground research. There, he checked in on recent IPO Luckin Coffee (NASDAQ:LK). After visiting a shop in Shanghai and tasting what LK had to offer, he wasn’t initially impressed. But now, after Luckin reported revenue growth of 540% quarter-over-quarter, he’s starting to sip on what LK stock has to offer.
This company, often known as the Starbucks (NASDAQ:SBUX) of China, isn’t the only hot stock he’s starting to watch. Tune into this episode for three to watch — and learn which one he sees as a “screaming buy.” These three names, Sherwin-Wiliams (NYSE:SHW), Allegiant Travel (NASDAQ:ALGT) and Lululemon (NASDAQ:LULU) all play on big long-term themes that have him excited. And if you know McCall, you know he loves to invest based on these intense long-term trends.
Make sure to listen in to this episode of “Moneyline” for more on stocks to watch and his reviews of Luckin Coffee’s brew. Plus, you’ll even get a preview of his recent travels to Portugal.
Matthew McCall left Wall Street to actually help investors — by getting them into the world’s biggest, most revolutionary trends BEFORE anyone else. The power of being “first” gave Matt’s readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and+1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities.
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