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“Are marijuana stocks overpriced?”
Heck no!
Yesterday, I told you about Aurora Cannabis (OTC BB: ACBFF).
Today, I’m going to explain why Aurora Cannabis stock and other major pot stocks are deeply undervalued . . . and how you can cash in before Oct. 17.
My just-announced briefing reveals urgent trade details (click here for access).
Consider Aurora Cannabis.
With the MedReleaf acquisition, Aurora Cannabis is on track to produce 570,000 kg of cannabis per year.
That’s worth $3.1 billion in annual sales, based upon recent cannabis prices.
Compare that with the company’s market capitalization – or the total value of the stock.
The company’s market cap is $4.9 billion.
That means Aurora Cannabis stock is trading at 1.6X sales.
Plus, the company appears on track for impressive growth. Quarterly sales could surge from $16.1 million in the last quarter – to over $500 million!
That’s a 31X increase in sales – within the next year or two.
Aurora is a rapidly growing company – trading at just 1.6X forward sales.
So, how does that compare with other stocks?
Lots of folks try to compare “pot stocks” with other companies in sectors including alcohol, pharmaceuticals and tobacco.
So, let’s consider Anheuser-Busch InBev (NYSE: BUD).
It’s the #1 brewer in the entire world – with annual sales of $56 billion in 2017. Plus, the company reported $8 billion in profits.
InBev is a major player in an established industry. The company isn’t exactly a “growth stock.” This year, sales are expected to drop by nearly 1%.
Yet the stock commands a rich valuation.
InBev currently sports a market capitalization of $201 billion. That translates into a price-to-sales multiple of 3.6X.
Price-to-earnings – or P/E – is another common way to value stocks. By that measure, the stock trades at 25X earnings. That’s a big premium to the 17X P/E for the large-cap S&P 500 index.
In short, InBev is a no-growth alcohol stock with a big brand and a rich valuation.
Yet, InBev is just one example.
Pfizer (NYSE: PFE) is growing at 3% per year – and its stock trades at 4.3X sales.
And cigarette company Altria (NYSE: MO) expects sales growth of less than 1% – yet the stock trades at 5.6X sales.
Cannabis stocks like Aurora are early movers.
They don’t have a lengthy history of growth and big profits. Plus, they don’t pay dividends to their shareholders.
These are growth stocks . . .
In the early stages of a massive $100 BILLION market.
That’s a market growing by over 1,000%!
A handful of smaller pot stocks could be “bought out” – at HUGE premiums – in the coming weeks.
That’s why I’m hosting this LIVE webinar event.
Just click here to join me – it’s completely free.
Yours in Profits,
Ian Wyatt
P.S. Did I mention my personal plan?
I’m investing $100,000 – for my kid’s college fund – in these “pot stocks.” And I plan to make 10X my money within three years.
Go here for details on this special project.