2 thoughts on “Marijuana-Like Stock Universe (4/7/2017)

  1. Thank you for the question. I have struggled with this case “GoPro” since it has a high marijuana beta. GoPro is consumer discretionary, the following is an excerpt of my SeekingAlpha on Marijuana-like stock regarding cyclical M-like stocks:

    “Recreational marijuana use represents the majority of the total marijuana use. Due to its discretionary nature, recreational marijuana use is closely related to the consumer discretionary income and highly cyclical. It stands to reason, therefore, cyclical stocks which are driven by positive consumer sentiment should closely follow a similar path of the marijuana stocks. This would include companies like Avis Budget Group (NYSE: CAR) and Spirit Airlines (NASDAQ: SAVE) in the Transportation Industry and ExOne (NASDAQ: XONE) and Energous Corp (NASDAQ: WATT) in the Capital Goods Industry. In Table 2, 12 cyclical non-marijuana stocks with an average marijuana beta around 0.70 have been identified. This segment of the stocks has produced a total return of 114%.”

    or you can read the entire article:


    Liked by 1 person

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