Marijuana stocks are on FIRE lately. Just like Bitcoin, marijuana stocks have been getting clobbered since about 2017/2018 at the height of the previous bubble top.
Well good news! The marijuana pump may be back. Long term bulls are watching the recent price action with awe as certain marijuana stocks like Sundial Growers and IGC are advancing 20-50% per day consistently.
In fact, we even recently started suggesting that this is the beginning of a new bull run in this previous article.
So which pot stocks are we looking at? Aphria!
For now, we believe there is a lot of potential in this industry.
Below we answer the assertion: Why Aphria Stock Is Still A Screaming Buy.
Legalization Vote Reappears in Congress
First and foremost, marijuana stocks appear to be skyrocketing in anticipation of Congress’s latest vote on marijuana legalization.
According to NJ.com’s article on the subject:
A postponed vote on landmark legislation ending the federal ban on cannabis will take place within a week, House Majority Leader Steny Hoyer announced Friday.
Hoyer, D-Md., specifically listed the Marijuana Opportunity Reinvestment and Expungement Act, or MORE Act, as one of the items of business when the House returns from the Thanksgiving holiday. Lawmakers are scheduled to debate and vote on the legislation either Thursday or next Friday.
Pot stock owners REJOICE!
A successful passing of this and other marijuana decriminalization measures would bode very well for long term holders.
Record High Support For Marijuana Legalization
However, it is not just stockholders who agree with decriminalizing this lovely, versatile plant.
According to a recently released national Gallup poll, Americans’ support for legalizing marijuana is now at an all time high.
See chart below:
Or as Gallup puts it:
WASHINGTON, D.C. — Americans are more likely now than at any point in the past five decades to support the legalization of marijuana in the U.S. The 68% of U.S. adults who currently back the measure is not statistically different from last year’s 66%; however, it is nominally Gallup’s highest reading, exceeding the 64% to 66% range seen from 2017 to 2019.
For those of you that have been in the stock market for a long time, you probably know and understand one thing.
There are no coincidences.
As we stated in the previous article, there is a strong probability that weed stocks would have found a catalyst to pump anyway.
We believe this is true because the ascending MACD.
In fact, check out our screenshots predicting these recent moves be;ow:
As we noted here, the Monthly MACD curled up to positive on multiple marijuana stocks.
This is extremely bullish.
From the previous article, we predicted:
Finally, as you can see from above, the monthly MACD has finally given the signal to cross over positive. To the AFN analyst team, this is the most bullish indicator out there. Technically this is the first month of a positive MACD, and is usually the weakest. The lowest point of APHA stock can be seen in the image of the red semicircle looking figure, which coincides with the lowest price of APHA as well. Theoretically, the converse should happen on the way up. Essentially, when the MACD begins to create a fully green semicircle is when the stock theoretically begins to see massive increase in price. It is not an exact science, but there are very high correlations between prices and green MACD crossings. For this reason, we are extremely bullish. If you can believe it, virtually all of the marijuana stocks ARE SHOWING THE SAME EXACT PATTERN!
As of this writing, multiple marijuana stocks are going absolutely bananas.
Not just that, but they are making some extraordinary moves.
For example, Sundial Growers stock was up about 130% today, with over 1 Billion shares traded.
IGC is up about 30% with 25M shares traded.
HEXO stock and GNLN also up about 20%.
The rest of the major pot stocks are up around 10%.
Are we soothsayers or something?
Nope…just following the trend.
Remember, the trend is your friend.
Bullish on APHRIA Stock
Despite the fact that cannabis stocks have been getting hammered for years now, the actual companies are doing pretty well.
Aphria, in particular, continues to show some strong growth and positive company developments.
See the most recent 10Q statement below:
As you can see, Aphria’s cannabis revenue is almost 300% higher quarter on quarter.
This is despite some pretty extraordinary times, considering the global lockdowns.
The lockdowns have destroyed many businesses, but there are always opportunities.
And for the best opportunities, you should definitely subscribe to AFN for our future email blasts!
Continuing, Aphria did end up losing money on the quarter, but that is for a variety of reasons, mostly due to cost increases associated with selling the marijuana products.
We do not want to feed the hype or recommend buying/selling any stock, but depending on the outcome of the passage of the marijuana bill in congress, this could be a very big deal.
Recently, the company has made headlines by purchasing a beer producer to get a foothold into US markets.
The press release reads:
(Reuters) – Aphria Inc APHA.TOAPHA.O said on Wednesday it plans to buy craft brewer SweetWater Brewing Co for $300 million as it looks to expand into the United States while becoming the first major pot producer to enter the alcoholic beverages market. The deal gives Aphria a U.S. distribution point at a time when cannabis is gaining broader acceptance in the country, with four more states voting to legalize recreational cannabis on Tuesday and the Democrats promising to decriminalize marijuana federally if elected to the White House.
Distribution points are BULLISH.
You know what else is bullish?
Aphria’s CEO going on CNBC to discuss marijuana infused alcoholic drinks after buying the aforementioned beer company.
You can watch that here.
The combination of factors, particularly ones we continue to predict accurately, appear to be coming to fruition.
Multiple marijuana stocks have been on an absolute face ripper the past couple of days.
Massive industry competition is forcing these big players to make big moves.
Aphria’s purchase of a beer company, potentially for marijuana beverages and distribution, is very bullish.
The latest Congressional debate and all time high support for legalizing marijuana- very bullish.
And finally, the positive MACD, our favorite and most prized indicator.
Do we expect speed bumps along the road?
OF COURSE. There will be large drawdowns, as with any bull market.
But, these arguments as a whole are why we believe:
Aphria Stock Is Still A Screaming Buy.
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Did you see our previous article on Sundial Growers?
It’s up 600% from our first prediction! Check it out here.
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