Curaleaf Holdings Inc (CURA.TO)

Big spike last year due to excitement about cannabis being rescheduled, which would reduce its tax bill. It will happen, but hard to predict when (lots of false starts). Volatile. Small position only until cashflow improves.

They're leaders in this sector which is playing off this rescheduling. Even without that, these names will do fine, but return to their lows.

Entire sector is extremely volatile, trades on politics. Continues to grow and expand in the US. Challenge in US right now is the tax restriction on expensing business activities, and at some point that will change. Challenge is to know when that day will come.

Sector as a whole has really improved, and no one's really paying attention. All balance sheets have been cleaned up with better management in place. Lots of room to get more attention, and the space will be volatile. Still a commodity-type play. Undervalued. He'd hold on.

He has no exposure in the sector. In a holding pattern. Needs the catalysts of legalization and updated banking practices for tax write offs. But who knows how long this might take. Move on.

Large issue with the company is legalizing the products(marijuana). Another worry is the over supply of products in the market. Federal laws against marijuana in USA make it hard to deal with expenses that are not deductible (100% tax rate). Could be a good investment if US legislation changes. In the meantime, would not recommend investing. 

US rescheduling hasn't happened. Off peak. Fits and starts when there's news. Entrenched opposition. US firms can't deduct expenses like a "legitimate" business, so can't turn a profit. Trader's dream, but not for long term.

He deals with 3- to 5-year money, holds it a long time, and rides the growth of the underlying business. Canadian marijuana space is at risk. US landscape is more fertile, better capitalized, better opportunities, and more upside, especially when the US legislation becomes law.