Considering investing in the cannabis sector? The sector has seen enormous gains and made early investors very wealthy. The demand for legal weed will continue to grow following its legalization. For those looking for good names, here are 10 marijuana companies that you should consider.
He is not an expert in cannabis. There will be real industry going forward and some companies will prosper in the long term. The valuations still remain excessive. If he were to participate it would be with Canopy Growth as they have a connection with Constellation Brands in the US.
He does not invest in the cannabis space and will not until there is more clarity in who are the strong players in the space -- it is way too early. He thinks ACB-T is highly speculative and since there are no real earnings this is too far out there for him. In the long…
He only follows the space generally. He is not a fan of the space. There is a lot of uncertainty. It is priced for perfection. It looks like it will be a commodity product, so lower margins.
This has a couple of interesting aspects. They have great genetics, and genetics are really important. If you are going to go recreational, you need a marijuana seed that produces a high quality product. They just doubled their 15,000 ft.² facility and will have a big expansion on their property. He likes this company.
He already bought and sold it, but wouldn't buy it here. It's well-funded and well-run. THCX was waiting for a contract from the Quebec government, so it's a good story and will be profitable. But it's had a good run for now. He'd rather buy HMMJ--individual companies are so volatile.
This is a cannabis company that has a new product line for pets. He generally dislikes the sector and the associated valuations. You are betting this sector is going to explode and it is hard to know which companies will survive. It has a $600 million valuation on $20 million in sales.
It is interesting in the way they have transitioned their business to cultivation. It is on his radar. It has some possibilities down the road.
(Market Call Minute.) There are so many marijuana companies that whole sector should be avoided. It is a ridiculous valuation for a commodity-based product. There will be some companies that will make money, but if you cannot predict which ones, then stay away.
One of the 39 marijuana licensed producers. Has a small operation on Vancouver Island. Also, has property on the mainland and the goal is to build a new facility there and get it licensed. A new licensed facility, gets them into the Health Canada queue a lot faster. This company flies under the radar right…
A lot of people have been concerned about the sales license with this company. They were very close to getting their sales license from Health Canada, and then there were pesticide issues with some other companies. Health Canada asked the company to look at some of the fertilizers they were using. Now they have to…
You can also choose a Marijuana-related ETF but the industry is still small and Marijuana ETFs are not well diversified so if you have the time, you might be better picking the individual names.
Short selling: He has not done much short selling in this space. He tends to be long. If he was going to do it, this would be the vehicle to do it with. There would not be any M&A risk.