KERN stock has been selling off for months but it’s finally reaching an attractive level for a long-term buy and hold.
KERN Stock Added to World’s Largest Marijuana ETF
On October 2, 2019. Akerna Corp. (Nasdaq: KERN), a leading cannabis compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®), announced its addition to the holdings of the world’s largest suite of cannabis exchange traded funds, including the Horizons Marijuana Life Sciences Index ETF (“HMMJ”:TSX), and the Horizons US Marijuana Index ETF (“HMUS”:NEO). Combined, the two report net assets of more than $630 million.
Jason Assad, Akerna’s newly named Director of Investor Relations stated, “We are pleased to have been added to the world’s largest marijuana ETF, in the company of other fellow leaders and innovators in the cannabis industry. Inclusion introduces Akerna to a broader set of investors as we seek to further the development of the world’s most transparent and accountable supply chain company, building atop recent growth.”
The Horizons Marijuana Life Sciences Index ETF provides exposure to North American, publicly listed cannabis companies with connects to life sciences, while the US Marijuana Index ETF focuses solely on companies with significant business activity in the U.S. cannabis or hemp market. The Horizons Marijuana Life Sciences Index’s top five positions include Canopy Growth Corp., Aurora Cannabis Inc., Cronos Group Inc., Tilray Inc. and GW Pharmaceuticals PLC. The Horizons US Marijuana Index ETF’s top five positions are Harvest Health & Rec Inc. Subordinate Vtg, Cresco Labs Inc. Sub Vtg, Charlottes Web Holdings Inc., Curaleaf Holdings Inc. Subordinate Vtg, and Green Thumb Industries Inc. Sub Vtg.
The Horizons Marijuana Life Sciences Index ETF is an index (or passively managed) ETF, which is designed to provide exposure to the performance of a basket of North American publicly listed life sciences companies with significant business activities in the marijuana industry. The North American Marijuana Index selects from a current universe of companies that have operations that may include one or more of biopharmaceuticals, medical manufacturing, distribution, bioproducts and other ancillary businesses related to the marijuana industry.
KERN Stock Could Soar On Revenue Growth
KERN stock has the potential to soar because of its excellent revenue growth. The company has QoQ revenue growth of 275%.
We are not adding KERN stock to the long-term buy and hold GST Portfolio at this time. This stock has burned a lot of investors over the last few months and the ill-will surrounding this stock is not likely to go away anytime soon. Worse, the company does not have positive earnings and so it has no P/E ratio. Even worse, the change in institutional ownership is -74% over the previous 3 months as institutions totally dumped the stock after the IPO lock up period expired. They wouldn’t do that if they thought the stock was going higher. However, the recent addition to the world’s largest Marijuana ETF and the most excellent revenue growth could see excitement in this stock reignite in the coming weeks and months. Put KERN stock on your watch list and stalk for evidence of a turnaround on the chart.
Disclosure: We do not hold any position in KERN stock.