Opinions
Bruce Campbell (2)
The Green Organic Dutchman Holdings Ltd.
TGOD-CSE
DON'T BUY
Jul 25, 2018
$5.700
Stock price when the opinion was issued
agriculture
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COMMENT
BUY
Competitive advantage over traditional cannabis? Likes it, versus a lot of the growers. Concern about the sector is that it will become a commodity, and then lowest price wins. A lot of consumers will care about the supply chain in terms of emissions, labour standards, environmental and social issues. People will pay for certified organic.
agriculture
COMMENT
This sector is bought on sold based on news, so it's riskier. He likes TGOD because they focus on organic products, so this brand could tap into that audience and do well. He stresses that this sector is volatile, though great long-term potential. TGOD is among the best of organic weed stocks. The sector will rebound, but will take time.
agriculture
WATCH
He looked at this during their private rounds of financing. He had concerns after the IPO. Their facilities have been slow to get up and running. There has been an overhang as Aurora owned a sizable piece. This will become a sizable cannabis producer in the future, but it will take multiple stages to get there and there will be growing pains along the way. He will watch this one.
agriculture
COMMENT
This is an interesting cannabis company. They are the only one that is certified organic. The market is still so young for this. He does not see a lot of differentiation. He does not know how much consumers want organic cannabis. It is held in an organics ETF. It will be caught in the frenzy and will trade on news.
agriculture
WATCH
They had a lot of shares that became free trading from previous financing. Also Aurora had an option that they did not exercise on the stock. They are building this big greenhouse but the facilities are 12-18 months behind. He is watching it. They will be a dominant player once they are done.
agriculture
Advertising
It's done very well. The organic portion certainly has its place in the consumer market. If someone can organically produce cannabis, they should get a premium on their product, though they'd face competition. Green's valuation is rich vs. its peers. He's avoided it because of this valuation.