{"id":113342,"date":"2019-10-15T20:36:43","date_gmt":"2019-10-15T20:36:43","guid":{"rendered":"https:\/\/stockchase.com\/discover\/?p=113342"},"modified":"2019-10-17T14:30:13","modified_gmt":"2019-10-17T14:30:13","slug":"one-year-of-cannabis-investing","status":"publish","type":"post","link":"https:\/\/stockchase.com\/discover\/one-year-of-cannabis-investing\/","title":{"rendered":"One Year of Cannabis Investing: Happy Birthday, Mary Jane!"},"content":{"rendered":"<p>A year ago, everyone was talking cannabis. &#x1f33f;<\/p>\n<p>When Canada legalized weed on October 17, 2018, sector leader, <a href=\"https:\/\/stockchase.com\/company\/view\/4811\/WEED-T\">Canopy Growth<\/a> closed at $65.76. On Oct.16, <span style=\"text-decoration: underline;\">2019<\/span>, the stock was worth $26.64. Canopy&#8217;s plunge reflects the woes of the wider cannabis sector; in that time frame, the <a href=\"https:\/\/ca.investing.com\/indices\/north-american-marijuana\" target=\"_blank\" rel=\"noopener\">North American Marijuana Index<\/a> has plummeted from $1,989 to just above $900.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113736\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/WEED-T-1-760x254.png\" alt=\"WEED-T stock chart\" width=\"825\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/WEED-T\/chart?labels=true\" alt=\"WEED-T\" align=\"right\" \/><\/p>\n<p>In the past year, Canopy&#8217;s board booted its maverick CEO, Bruce <a href=\"https:\/\/www.canopygrowth.com\/investors\/news-releases\/canopy-growth-announces-leadership-transition\/\" target=\"_blank\" rel=\"noopener\">Linton<\/a>, and <a href=\"https:\/\/stockchase.com\/company\/view\/5763\/TRST-T\">CannTrust<\/a> lost both its CEO and cannabis <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2019-09-17\/canntrust-s-pot-license-suspended-following-regulatory-breaches\" target=\"_blank\" rel=\"noopener\">license<\/a> after Health Canada began investigating them for operating unlicensed grow rooms. Meanwhile, overzealous government regulations and red tape have bottlenecked legal supply so badly that the <a href=\"https:\/\/www.ctvnews.ca\/business\/pot-price-in-canada-falls-6-4-per-cent-to-7-37-a-gram-statcan-1.4630721\" target=\"_blank\" rel=\"noopener\">price<\/a> of black-market ganja has actually <i>fallen. <\/i>Despite high demand, the Ontario government has actually lost $42 million selling cannabis this year.<\/p>\n<p><a href=\"https:\/\/finance.yahoo.com\/news\/pot-producer-aphria-soars-pre-130538886.html\" target=\"_blank\" rel=\"noopener\">Aphria<\/a> is one of the few companies to show some life.<\/p>\n<p>To paraphrase Hunter S. Thompson, the first year of legal Canadian marijuana has been a king-hell bummer.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113738\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/TRST-T-1-760x254.jpg\" alt=\"TRST-T stock chart\" width=\"825\" \/><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Discover What&#039;s Inside<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/stockchase.com\/discover\/one-year-of-cannabis-investing\/#So_has_investing_in_cannabis_become_hopeless\" >So, has investing in cannabis become hopeless?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/stockchase.com\/discover\/one-year-of-cannabis-investing\/#And_the_USA\" >And the USA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/stockchase.com\/discover\/one-year-of-cannabis-investing\/#Is_a_Marijuana_or_Cannabis_ETF_a_good_investment\" >Is a Marijuana or Cannabis ETF a good investment?<\/a><\/li><\/ul><\/nav><\/div>\n<h3><span class=\"ez-toc-section\" id=\"So_has_investing_in_cannabis_become_hopeless\"><\/span>So, has investing in cannabis become hopeless?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>No. This October 17 also marks the release of regulations to produce and sell cannabis edibles (food items). Ottawa will codify how items like wacky t&#8217;backy chocolate bars and cannabis gummi bears will be legally sold to Canadians, namely curious people (i.e. housewives) who&#8217;d never touch a joint, but would nibble a &#8220;chronic&#8221; cupcake or sip a cannabis beer. It&#8217;s estimated that this Cannabis 2.0 market will be worth <a href=\"https:\/\/www.newswire.ca\/news-releases\/deloitte-estimates-next-round-of-cannabis-legalization-will-create-a-new-2-7-billion-market-in-canada-854979489.html\" target=\"_blank\" rel=\"noopener\">$2.7 billion<\/a>.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"And_the_USA\"><\/span>And the USA?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Another avenue is the <a href=\"https:\/\/www.esquire.com\/lifestyle\/a21719186\/all-states-that-legalized-weed-in-us\/\" target=\"_blank\" rel=\"noopener\">United States<\/a> where cannabis is legal in 11 states and growing as there remains a push to legalize it federally. Presently, Washington could pass <a href=\"https:\/\/www.prnewswire.com\/news-releases\/top-cannabis-companies-that-are-thriving-on--us-farm-bill-300866964.html\" target=\"_blank\" rel=\"noopener\">legislation<\/a> that would allow cannabis companies to borrow from federally controlled banks.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113740\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/STZ-N-1-760x254.jpg\" alt=\"STZ-N stock chart\" width=\"825\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/STZ-N\/chart?labels=true\" alt=\"STZ-N\" align=\"right\" \/><\/p>\n<p>With these major developments, the Canadian cannabis industry will continue to evolve and offer opportunity, though investors are looking abroad for returns. That&#8217;s precisely why <a href=\"https:\/\/stockchase.com\/expert\/view\/1415\/Jamie-Murray\">Jamie Murray<\/a> still believes in <a href=\"https:\/\/stockchase.com\/company\/view\/1397\/STZ-N\">Constellation Brands<\/a>, the liquor company that invested in cannabis early and could produce cannabis beverages down the road. Constellation may even own Canopy in a few years. <a href=\"https:\/\/stockchase.com\/expert\/view\/1415\/Jamie-Murray\">Murray<\/a> sees this as a long-term investment in weed, not booze.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113737\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/WBR-T-1-760x254.png\" alt=\"WBR-T stock chart\" width=\"825\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/WBR-T\/chart?labels=true\" alt=\"WBR-T\" align=\"right\" \/><\/p>\n<p>That forecast also applies to Canada&#8217;s <a href=\"https:\/\/stockchase.com\/company\/view\/6137\/WBR-T\">Waterloo Brewing<\/a> (formerly <a href=\"https:\/\/stockchase.com\/company\/view\/180\/BRB-T\">Brick Brewing<\/a>). <a href=\"https:\/\/stockchase.com\/expert\/view\/1349\/Bruce-Campbell-2\">Bruce Campbell<\/a> of Stone Castle Investment feels that cannabis drinks hold large potential upside for Waterloo. <a href=\"https:\/\/stockchase.com\/expert\/view\/1221\/Colin-Stewart\">Colin Stewart<\/a> is just as high on this stock, predicting it to be the first Canadian brewer to get into cannabis drinks. <a href=\"https:\/\/stockchase.com\/company\/view\/6137\/WBR-T\">WBR<\/a>, however, trades at a low average volume of 11,000 shares daily, but pays a decent 3.08% dividend yield. <em>(Disclosure: I own this.)<\/em><\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113739\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/TER-CN-1-760x254.jpg\" alt=\"TER-CN stock chart\" width=\"825\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/TGIF-CN\/chart?labels=true\" alt=\"TGIF-CN\" align=\"right\" \/><\/p>\n<p>Looking at America, a cannabis market ten times larger than Canada, Campbell feels strongly about <a href=\"https:\/\/stockchase.com\/company\/view\/5931\/TGIF-CN\">1933 Industries<\/a>, a cannabis producer in Las Vegas that is boosting production to meet higher demand. Caveat: 1933 pays no dividend currently and is trading around 52-week lows. Campbell, who specializes in cannabis investments, also recommends <a href=\"https:\/\/stockchase.com\/company\/view\/6180\/TER-CN\">TerrAscend<\/a>, which uniquely operates on both sides of the border and boasts a CEO with a good track record in pharma.<\/p>\n<p>Earlier this month, <a href=\"https:\/\/finance.yahoo.com\/news\/terrascend-canada-triples-licensed-cultivation-110000348.html\" target=\"_blank\" rel=\"noopener\">TerrAscend<\/a> announced it was tripling its production and processing floor space west of Toronto. This expansion will better serve European and other foreign markets. High-end cannabis craft producer, <a href=\"https:\/\/stockchase.com\/company\/view\/5692\/NDVA-X\">Indiva,<\/a> might be a sweet deal after striking partnerships with an American chocolate company.<\/p>\n<h3><span class=\"ez-toc-section\" id=\"Is_a_Marijuana_or_Cannabis_ETF_a_good_investment\"><\/span>Is a Marijuana or Cannabis ETF a good investment?<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>Normally, I&#8217;d recommend an ETF for those who don&#8217;t wish to own individual stocks, but there is too much M&amp;A and volatility among\u00a0 established weed <a href=\"https:\/\/marijuanaindex.com\/stock-quotes\/canadian-marijuana-index-tracking-top-cannabis-stocks-in-canada\/\" target=\"_blank\" rel=\"noopener\">stocks<\/a> to endorse <a href=\"https:\/\/stockchase.com\/company\/view\/5482\/HMMJ-T\">HMMJ<\/a> (MARIJUANA LIFE SCIENCES INDEX ETF) now.<\/p>\n<p>True, it pays a staggering 9.46% dividend yield (against a 0.86% MER), but its price has plunged to less than half since March.<\/p>\n<p><img decoding=\"async\" class=\"alignnone size-medium wp-image-113742\" src=\"https:\/\/stockchase.com\/discover\/wp-content\/uploads\/2019\/10\/CLIQ-T-1-760x254.jpg\" alt=\"CLIQ-T stock chart\" width=\"825\" \/><\/p>\n<p><img decoding=\"async\" src=\"https:\/\/data.wealthica.com\/api\/securities\/CLIQ-T\/chart?labels=true\" alt=\"CLIQ-T\" align=\"right\" \/><\/p>\n<p>Instead, a cannabis proxy could be <a href=\"https:\/\/stockchase.com\/company\/view\/1888\/CLIQ-T\">Alcanna<\/a>. This Alberta liquor retailer has been expanding into cannabis and has aggressively gained undercut competition, then bought them out, notes <a href=\"https:\/\/stockchase.com\/expert\/view\/1317\/Fabrice-Taylor\">Fabrice Taylor<\/a>. It&#8217;s telling that Aurora Cannabis has invested in Alcanna.<\/p>\n<p>So, farewell Cannabis 1.0 and its dysfunctions, and welcome to Cannabis 2.0, a new era that&#8217;ll be tasty and international&#8230;dude.<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A year ago, everyone was talking cannabis. &#x1f33f; When Canada legalized weed on October 17, 2018, sector leader, Canopy Growth closed at $65.76. On Oct.16, 2019, the stock was worth $26.64. Canopy&#8217;s plunge reflects the woes of the wider cannabis [&hellip;]<\/p>\n","protected":false},"author":12,"featured_media":113743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"cwp_meta_box_check":"No","cwp_rev_product_name":"","cwp_rev_product_image":"","wppr_links":[],"cwp_rev_price":"","wppr_options":[],"wppr_pros":[],"wppr_cons":[],"footnotes":""},"categories":[17],"tags":[281,282,285,204,284,283,280],"class_list":["post-113342","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-lists","tag-beer-companies","tag-beverages","tag-bruce-linton","tag-cannabis","tag-canopy-growth","tag-edibles","tag-marijuana"],"wppr_data":{"cwp_meta_box_check":"No"},"_links":{"self":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/113342","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/comments?post=113342"}],"version-history":[{"count":0,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/posts\/113342\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media\/113743"}],"wp:attachment":[{"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/media?parent=113342"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/categories?post=113342"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockchase.com\/discover\/wp-json\/wp\/v2\/tags?post=113342"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}