WeedMD Inc (WMD-X)

WeedMD will supply what’s sold in Haiku stores. Haiku could be one of the main brands in Canada. Might be an interesting way to play the private retail industry when legalization comes through. You expect private retail to take on more and more of the market.

For his growth portfolio he owns HMMJ-T, which Canopy is a part of. He added a little more Canopy to top up. Buyer beware, it has a $9.5 billion market cap, making it a very expensive company to buy. He likes the management. He would like to see the Canadian banks get in favour of the marijuana stocks once it gets acceptance now that it is legalized. He thinks supply will exceed demand in Canada in the next few years ahead. He thinks there could be emerging opportunities in the US given the vast size of the market there.

A recent article by a market analyst suggested Canopy (WEED-T) has an advantage with multiple provincial locations and about 5.6 million square feet of space including a 700,000 square foot facility in Quebec expected to be in operation by May this year. He guesses their capacity will be 270 million grams per year, which should project $1.1 billion in annual sales beginning in September most likely. They are a monster in this space.

Haven’t got their sales license yet. They leased an old Imperial Tobacco property in Aylmer. All these stocks are trading on very high valuation, so he would be careful.