Canopy Growth Corp. (WEED.TO)

This is pretty early for the sector. One of his observations is that it is less profitable than people think. It is really an agricultural stock with all the risks that are associated with it. Also, there is a lot of hype behind it. He has been Short this one since April. Feels it is overvalued and overhyped. There is going to be more competition for them.

The industry looks quite interesting. We don’t get too many opportunities in public markets to invest in an emerging sector like this. You have to be aware that there could be some government challenges along the way. This one seems to be the leader, which is why he chose it. Growth rates look good and he doesn’t think the demand picture is going to be a problem. Thinks that we could see earnings in 2015 that would justify the current valuation.

Medical marijuana. Trades in a fairly volatile fashion. The difficulty he has is that there is huge uncertainty about what will happen to the market, regulations and the court case that happened in BC. There is some possibility that with a change in government, there could be problems. It does look like it has some investor affection. This is “gold rush” time and in a gold rush most people don’t find any gold.

A very speculative industry. Hard to say how big the market is going to be, which concerns him. These guys have a license and the others don’t. The industry is going to be very heavily regulated.

It’s all very early stage. They have a license. These are early days for these kinds of liabilities. Cancer suits? There will be a lot of regulation and there will not just be one player. It’s interesting, but no barriers to entry.