C21 Investments Inc.

CXXI-CN

(A Top Pick Oct 04/18, Down 62%) Valuation is super cheap but they owe a lot of money to the American founder. A director in the company has been buying shares, so he doubt there will be a financing as rumoured. Once they figure out their debt problem, this will move up.

It was a market darling. They didn't excuse their business well, but they have had a management change since. The new management has already brought down cost by $3.7M. They have a 25% growth rate, and should be cash flow positive soon. Expects more acquisitions when they raise more capital.

He has had it as a past pick. This morning they came out with data. They have had a fantastic run rate. There is a valuation discrepancy. They will acquisitive. They just opened up a dispensary and traffic numbers are higher than they expected. They will have more repeat customers and more loyalty than a Las Vegas store.

A cannabis player that just acquired one of the biggest dispensaries in Nevada. It trades at 1 times sales, whereas peers are 3-5 times -- lots of upside here. (Analysts price target not reported). Yield 0%.

He owns it and says it will become one of the most profitable companies in the US cannibas space once it closes it Nevada acquisition. The market has reflected the concern over the closing. It should be closed by early-January, he thinks. They have financing he believes with a banking interest. Management sees 2019 exit around $79 million revenues and 30% margins. With postivive cashflow next year, he thinks this leaves room for further acquisitions.