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.
As a trader, he would have sold it already. For others, maybe sell half. There's been a lot ot hype as reflected in its sharp rise recently. Treat yourself and sell some of this now.
They have been on a pretty big buying spree. This is not one he is particularly hot on. In fall 2017 they were supposed to be complete in their building but are only a third done to date.
The cannabis space for him has been a no-go zone for some time. He cannot get around the valuation of what these companies should be worth. It has rolled off. There was $2 Billion of equity that came to market. There are a lot of trapped buyers that are late to the party. The challenge…
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.
Given the M&A lens, if he was long in the space he would want the names that were trading below the average. This one is 8.5 times. The average is north of 16. This is a more attractive name. The medical side is interesting. He is not sure how the medical market is going to…
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.
Marijuana. The ETF gives you the basket of securities. When you go into an area that is new, you are never going to buy these stocks cheap. We had high momentum and now it seems to have broken down. You have to manage risk carefully. Have a stop loss.