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 thinks this is a speculative space. It is way too soon to know who are the winners. There is not a real cash flow in the sector yet. He looks for sustainable total return with a minimum of risk. This is too soon to be investing here. (Ryan Bushell)
He does not dig into their product but hopes to use it medically some day. For him it is the medical side that will be massive. He does not think there is a whole lot of upside. He would be a big buyer at $6. It is speculative right now. (Larry Berman CFA, CMT, CTA)
Controversy over short-seller allegations and a lowball bid in a takeover attempt that puzzled investors. This has been rebounded off its lows but he can't accept the high valuations of these cannabis companies, some being extreme, and based on speculation. (Colin Stewart)
Definitely not a buy and hold, but a trader stock. It has a good chance of returning to its past high of $9-10. Because of recent extreme highs and lows, shareholders who bought this high will sell-off when HEXO returns to its past high in order to break even. Sell it at $9. (Keith Richards)
He started researching the cannabis sector because he thought cannabis was a pump-and-dump play--and it's largely true. The ones who'll make lasting money in this space are the insiders who sold stock and their investment bankers. He's owned TRST the past 9 months. Research said that TRST tells the truth and is well-financed, and a…
He is hesitant to look into the social media companies related to the cannabis sector. He does not believe there is enough defensible on the technology side to say data gathering is a beneficial business in this space yet. (Charles Taersk)
This trades at low valuations – 12 times earnings. A low cost producer in New Brunswick. Yield 0%. (Analysts’ price target is $9.09) (Charles Taersk)
This company has a lot of scientific research to support the health care aspects of cannabis. They also have extensive experience in low cost farming economics as part of their partnership with Village Farms (VFF-T). (Charles Taersk)
He has looked closely at this and now sees them stepping out to provide high quality bud to other producers. They just signed a major contract to supply Tilray (TLRY-N), which he feels adds substantial credibility to their business model. The risk lies in them not having a distinct brand. (Charles Taersk)
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.
This has attracted A LOT of interest, but inflows into cannabis have plateaud. There's lots of speculation and uncertainty, though it's an interesting space. Definitely, cannabis is not a core holding of his. It's typically to see extreme moves in this ETF and sector. This charges an 0.87% MER. Also consider the smaller SEED-T. (Daniel…