InvestingDaily.com

Account Information

  • My Account

    Manage all your subscriptions, update your address, email preferences and change your password.

  • Help Center

    Get answers to common service questions, ask the analyst or contact our customer service department.

  • My Stock Talk Profile

    Update your stock talk name and/or picture.



Close
FEATURED STRATEGY

Get rich from the world’s most BORING stocks

Get rich from the world's most BORING stocksWhen you buy these dependable Steady Eddies, you’ll see why “boring is beautiful.” You’ll fall in love with the 39 “stodgy” stocks currently in my portfolio… because they’ve racked up an average gain of 455%. That’s enough to turn $10,000 into a staggering $55,500! These “yawners” can slam the door on your money worries. Click here to get started now.

 

Monday Mailbag: Pot Stocks, Latin Plays, India Rising

By John Persinos on April 10, 2017

I was attending the cocktail party last Thursday night at Investing Daily’s annual Wealth Summit, held this year in Alexandria, Virginia, when an attendee with a wine glass in his hand said something memorable to me:

“I come to your Wealth Summit every year because I benefit from the cross pollination of ideas. I like to surround myself with people who are smarter than me and learn from them. It makes me an investor who’s not only wealthier, but also wiser.”

At our Wealth Summit this year, our team of investment experts broke down all of the latest political and economic changes to provide attendees dozens of specific investment opportunities and strategies. For me, the comment of the aforementioned attendee (who preferred not to be quoted by name) also describes the value of my weekly “mailbag” issue.

The questions and comments that I receive via email help stimulate a human conversation from which all readers benefit. The Buddhists call it “the open mind,” meaning that no matter how smart you may think you are, there’s always an opportunity to learn more.

For today’s cross pollination, let’s dive into our digital hive.

The green rush…

“I would like to buy marijuana stocks that are really cheap now but set to go up in a year or two and easily quadruple in price. I know there are marijuana stocks out there to be bought that will grow that fast because more and more states are legalizing the sale of marijuana. I want to get in on this before it is too late to do so.” — Rich S.

I also received this considerably more concise email on the same topic:

“Info on pot stocks. Thank you!” — Mary T.

Rich and Mary, it’s true: pot has evolved from an illicit activity into a multi-billion-dollar industry. In previous issues, I’ve shown you how to profit from this unstoppable trend.

Let’s just put aside the predictable journalistic puns about marijuana — e.g., smokin’ gains! high returns! — and get right to the point: the long-sought normalization of marijuana laws is becoming a reality among an increasing number of states, spawning a huge industry that’s attracting entrepreneurs, venture capitalists and individual investors.

As to Rich’s fear about getting in too late, he’s absolutely right. The time to invest in this nascent and fast-growing industry is now, before it matures and the barriers to entry for companies and investors get pricier.

The decades-long propaganda war on the cannabis plant produced generations of Americans who grew up convinced that marijuana was the “devil’s weed” only used by society’s misfits and criminals. That’s all changing, as marijuana legal reform sweeps the country.

To be sure, Attorney General Jeff Sessions is an avowed foe of marijuana legalization, but here’s my informed prediction: When it comes to marijuana, the former senator from Alabama will prove to be all talk and little action. There’s simply too much money at stake and at the end of the day the Trump administration is pro-business.

As marijuana evolves from shady practice to mainstream capitalism, a plethora of entrepreneurs are cashing in, not only by growing and selling pot but by creating branded edibles, “marijuana tourism,” vaping parlors, paraphernalia, shops, seeds, fertilizers, trade shows — you name it.

Here’s the rub: most of these companies are small, under-capitalized and extremely risky. But after scrutinizing a host of marijuana stocks, I’ve found the best of the bunch: GW Pharmaceuticals (NSDQ: GWPH).

Based in the United Kingdom, this pharmaceutical company discovers, develops, and markets cannabinoid prescription medicines. The company’s primary product is Sativex, an oromucosal spray for the treatment of multiple sclerosis and cancer pain.

With a market cap of $2.94 billion, GW Pharmaceuticals is one of the very few weed companies that isn’t a micro-cap stock. It’s a well-funded biotechnology innovator set to take off in 2017.

As for marijuana penny stocks: avoid them! Most are over-hyped and they’re destined to go bust.

Latin America: open arms for investors…

“Thanks for the good and timely recommendation to buy ILF. It’s still above the 20-day moving average and I think it has a support zone right about the $31.50 – $32.00 range.” — Jon D.

Jon is referring to my recommendation to buy shares of the iShares Latin America 40 ETF (NYSE: ILF), conveyed in my April 4 issue: Latin American Stocks: Dancing to a Faster Beat.

After five years of struggling in the wilderness, emerging markets are gaining traction again. In the vanguard is Latin America, as commodity and oil prices rise, manufacturing gets off its feet, and newly affluent consumers seek the good life that they see in developed nations.

Consumers in Latin countries are increasingly computer-literate, fostering growth in e-commerce and other technology-related industries.

Latin America encompasses a wide swath of resource-rich land that extends from the northern border of Mexico to the southern tip of South America. With a population of more than 630 million, this region compels investor attention. And speaking of fast-rising emerging markets…

Profitable passages to India…

“I read your recent piece on India with interest. You recommended EPI for this exposure. When I compare the various funds for India, using Morningstar numbers, I find MINDX to be a winner. The three-year and five-year performances of MINDX are superior to EPI’s.” — Larry H.

In my March 22 issue entitled Last BRIC Standing: Why It’s Time to Invest in India, I recommended WisdomTree India Earnings ETF (NYSE: EPI) as a play on India’s growth.

Matthews India Investor ETF (NSDQ: MINDX) is a suitable alternative, but I prefer EPI because one of its top holdings is outsourcing giant Infosys (NYSE: INFY), which serves as a bellwether for India’s crucial technology sector. MINDX doesn’t hold Infosys. As for MINDX’s better three- and five-year performances, keep in mind the oft-cited mantra: past performance is no guarantee of future results.

What’s more, MINDX is burdened with an expense ratio of 1.18%, which is high compared to EPI’s expense ratio of 0.84%. Those expense fees can add up over time and eat into your total returns.

Have a question or comment? I’d love to hear from you: mailbag@investingdaily.com — John Persinos

Put this “paycheck” on your calendar…

There’s considerable uncertainty in today’s investment climate. But what if you could receive a reliable once-a-week gain, just like a paycheck?

It’s not a fantasy; it’s already happening for the followers of Jim Fink, chief investment strategist of Options For Income.

Jim has developed a “profit calendar” trading system that allows you to collect payments every Thursday, similar to a paycheck. By adapting the time-tested methods of Chicago pit traders, Jim has created a system that cranks out gains like clockwork.

These “paychecks” can range in value from $1,150 to $2,800, but generally average out to $1,692.50. Want to sign up for your paycheck? Click here for all the details.

 

 

 


You might also enjoy…

 

12 Stocks Virtually Guaranteed to Go Up in 2018

You may not believe it, but I have a calendar in my hands right now that tells me the exact date and time when a few stock are practically guaranteed to go up. 

Twelve of them, in fact.

And if you were to invest in them following the simple buy and sell instructions found in this calendar…

You could be making $1,181… $11,814…. and as much as $190,916 more than by using a “buy-and-hold” strategy.

And here’s the best part…

I’m giving away a few copies of this calendar to interested investors (First come, first served).

With this calendar, you could get higher profits with less risk.

Click here to get the full story, and to claim your copy.

Stock Talk — Post a comment Comment Guidelines

Our Stock Talk section is reserved for productive dialogue pertaining to the content and portfolio recommendations of this service. We reserve the right to remove any comments we feel do not benefit other readers. If you have a general investment comment not related to this article, please post to our Stock Talk page. If you have a personal question about your subscription or need technical help, please contact our customer service team. And if you have any success stories to share with our analysts, they’re always happy to hear them. Note that we may use your kind words in our promotional materials. Thank you.

You must be logged in to post to Stock Talk OR create an account.

Create a new Investing Daily account

  • - OR -

* Investing Daily will use any information you provide in a manner consistent with our Privacy Policy. Your email address is used for account verification and will remain private.