Liberty Health Sciences (OTC: LHSIF) Is Undervalued
Is Warren Buffett Buying Pot Stocks Now?
Driving through central Florida this week, I was pretty bummed out.
I remember, many years ago, driving through this part of the state as a kid.
My folks would always stop at the same roadside stands where families of Vietnamese farmers sold fresh oranges and grapefruits. They were so delicious and gave us something to eat during those hour-long treks through little more than flat grasslands and orange groves.
These days, though, there’s no such sight.
The produce stands have been replaced by strip malls, and the groves have been replaced with large swaths of empty, littered industrial lots and dilapidated motels that have been overtaken by weeds and garbage.
Still, despite the depressing aesthetics of central Florida, this place continues to be a hot spot for baby boomers. And with those baby boomers comes robust demand for medical facilities, chain restaurants, and weed.
Boomers Love Their Weed
According to a 2018 study conducted by the NYU School of Medicine, cannabis use is becoming more prevalent among older adults, with 9% of adults aged 50–64 and nearly 3% of adults 65 and older reporting marijuana use in the past year.
These figures indicate a doubling in percentage of adults aged 50–64 and more than seven times the percentage of adults 65 and older.
In Florida, medical cannabis is legal, but it’s still a pretty limited medical market.
That being said, the Florida market for medical cannabis has grown rapidly since becoming legal.
According to the good folks at Marijuana Business Daily, Florida’s medical cannabis market is booming, with an average of nearly two dispensaries opening each week across the state. And the number of patients enrolling in Florida’s medical cannabis program has exceeded 200,000, with an estimated 10,000 new patients signing up every week.
Make no mistake: Florida’s medical cannabis market is booming, but there are only a few major retailers in the region. The top three public players include:
- Trulieve (OTC: TCNNF)
- Curaleaf (OTC: CURLF)
- Liberty Health Sciences (OTC: LHSIF)
Of that list, Liberty Health Sciences is the most undervalued (and unloved).
An early association with Aphria (NYSE: APHA) put pressure on the stock last year after a short attack on Aphria sent shares plummeting. Today, Liberty Health is still trading at a significant discount to its peers. The stock continues to struggle and has become very attractive for high-risk traders who love a good underdog story.
Full disclosure: I personally own shares of Liberty Health.
I also own shares of a number of undervalued cannabis stocks that have recently sold off. To be honest, I couldn’t help myself from buying.
As Warren Buffett once said, “It is wise to be fearful when others are greedy and greedy when others are fearful.”
I wouldn’t be surprised at all if Uncle Warren was loving pot stocks right now, as there has clearly never been a been a better time to be greedy.
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Over the past few months, the cannabis market has been hit pretty hard. And in all fairness, it needed to sell off, as many of these stocks had been trading at levels that far exceeded their “real-world” valuations.
But if you’re like me and you love a good bargain, it’s definitely time to start loading up the boat.
In fact, I recently put out a special investment note alerting investors to this very thing and identifying a handful of quality pot stocks that are now trading at huge bargains.
You can check out that investment note here.
One thing I pointed out in that note is that while cannabis stocks have been selling off, the market is still as lucrative as ever.
Consider the following developments over the past two weeks:
The UN’s International Narcotics Control Board has called for the decriminalization of drug possession.
Federal Reserve Officials have pledged to tell banks they can serve hemp businesses.
A cannabis banking bill has officially been placed on the House Union Calendar.
The SAFE Banking Act, which will allow cannabis businesses to have access to banking services, now has 206 cosponsors in the House.
The House bill to respect state cannabis laws now has 52 cosponsors.
The House bill to deschedule cannabis now has 30 cosponsors.
Illinois is about to become the next state to legalize adult-use cannabis.
You wouldn’t know it by looking at a handful of cannabis stocks, but momentum remains strong, and we’re still on track to see the end of federal prohibition happen by 2021. That’s just two years away. Two years for you to make sure you have exposure to the best-in-class cannabis operations in the U.S.
Because make no mistake: When word comes down from the fed that prohibition is on its way out, these stocks are going through the roof. You need to be in now, before that happens.
To get access to my own personal list of those best-in-class cannabis stocks to buy now, click here.
To a new way of life and a new generation of wealth...
@JeffSiegel on Twitter
Jeff is the founder and managing editor of Green Chip Stocks, a private investment community that capitalizes on opportunities in alternative energy, organic food markets, legal cannabis, and socially responsible investing. He has been a featured guest on Fox, CNBC, and Bloomberg Asia, and is the author of the best-selling book, Investing in Renewable Energy: Making Money on Green Chip Stocks. For more on Jeff, go to his editor's page.
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