Looking for a pot trade? Get dirty and buy the dirt that it’s grown in. Here’s my take on Innovative Industrial Properties (IIPR) (June 05, 2019)


I want to look at something that I think is pretty compelling here, Innovative Industrial Properties ( NYSE: IIPR). This company even pays a dividend, it’s a REIT basically. They own and lease property that pot is grown on etcetera, etcetera. This is a monster chart; at the same time you say, “Oh, I want to be in the pot space.” Okay, great, good for you. I don’t know enough about it, I just really don’t understand all of it and I don’t have much interest in learning. But I do know the various stocks and IPR ( NYSE: IIPR ) is the best one for me.

Aurora Cannabis ( NYSE: ACB ), this isn’t working. You look at Tilray ( NASDAQ: TLRY ), some of these are great swing trading stocks, Tilray ( NASDAQ: TLRY ) isn’t working, this looks like Bitcoin did a while ago. And then Cronos ( NASDAQ: CRON ) is not working. It fell back tot he 200, gapped up today but that doesn’t work. CGC ( NYSE: CGC ) the same deal. These are all really, really sloppy stocks and I am sure there are other stocks that you could look at and you pot aficionados that will find stuff that you really, really love.

What I am telling you is, hey, you have got to grow pot someplace. It’s kind of like back in the gold mining days; the guys that are selling you the pick axes and the shovels, the pans and stuff like that, those are the guys that made the money. You can do the same thing here in the pot space. This is a company that works. It’s on our Growth Stock List. We first put this on the list at $65.00 so this is up 40 percent or so, and, frankly, I think I think it’s got more to go. This is called a late-stage base, just in 2017 the stock was under $20.00, it’s a late-stage base but that doesn’t mean that it can’t continue to go up. It just means that you are not early, period, and there is a difference.

What I would suggest doing, hopefully, if the stock kind of pulls back a little bit, if it comes back below 90.00, say down into this area or so, that could be a good buying opportunity for a longer-term hold. You are going to hold it through the zigzags but you are trying to get it more into the channel here. But if you are more of an active trader if the stock, this was a high-volume day today, if there is some continuation tomorrow this could be a good quick swing trade for you, buying above $92.00.

Again, if it opens up above $92.00 you are buying the stock here setting a stop maybe just a little bit under $90.00 and then running it up, hopefully, maybe even up to 100.00. We don’t know whether this is going to happen, I am outlining two alternative trades for you. One, if tomorrow is strong, ride that momentum up $3.00, $4.00, $5.00, I think you will get a nice move out of that.

On the other hand, if this kind of stalls out, then if you are the momentum guy then okay, your trade didn’t fire off. You got a nice setup but there is no trigger, it didn’t work. On the other hand, you might be somebody else who is saying, “I don’t like these fast trades but I will buy the heck out of these bases.” Fine, so if the stock pulls back more into the middle of the range, that’s your time to start a position. That’s the way I would trade IIPR ( NYSE: IIPR )

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