America's Leading Investment Advisor Provides Analysis and Recommendations on Cannabis Stocks
NEW YORK, July 20, 2016 /PRNewswire/ -- Alexander Nachman, a leading expert on cannabis industry investing, prepared a quality assessment of marijuana stocks, potential upside, and risk. The full report can be found here.
"Prior to any investment, I prepare a fundamental analysis of the company's business model," Nachman commented. "I use quantitative modeling to isolate investment opportunities."
Nachman found three companies with solid fundamentals, reasonable price points, and positive potential. In his opinion the following stocks merit consideration:
- GW Pharmaceutical
- Kush Bottles
- Zynerba
Nachman would avoid:
- MassRoots
GW Pharmaceuticals (GWPH) fundamentals show a current ratio of 6.86 – an indicator of near term financial health. Book value is strong at $13.00 with a substantial $11.68 per share in cash. The beta is 3 and it can be a wild ride, so don't get emotionally attached.
Kush Bottles (KSHB) sells packaging products and solutions to the cannabis industry. Company is a leader in ancillary supplies, and strategically positioned with locations in Colorado, Washington and California. Kush Bottles' growth is solid and is recognizing its third consecutive quarter of gross profitability. Revenues increased 94% year-over-year, for the recent period.
Zynerba Pharmaceuticals (ZYNE) has a 52-week high of $43 and is cash rich. Zynerba had positive results from Phase 1 clinical trials and is initiating Phase 2 trials. ZYNE has a limited number of shares and can move very fast because of the lack of willing sellers.
MassRoots (MSRT) I would avoid in the near term. Its current ratio is .56, which for me is an immediate disqualifier. Company is low on cash and burning through it like a chainsaw through butter. I would not accumulate at these levels, and if owned, I would consider restructuring, with a chance to buy substantially lower by end of year.
To read the full Cannabis Investing Report, visit: goo.gl/MyJYeD
For information on marijuana stock investing, visit: www.alexandernachman.com
About Alexander Nachman:
Mr. Nachman is a 15-year Wall Street veteran known for his conservative approach, focus on fundamentals, and capturing emerging trends.
Securities Disclosure: I, Alexander Nachman, hold no direct investment interest in any of the companies mentioned in this article. This article does not constitute a solicitation to buy or sell any security, and is solely representative of my opinion.
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SOURCE Alexander Nachman
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