Charles Taersk

Market. His was the first open-ended mutual fund focusing in cannabis. People are trying to be more proactive on their health care and don’t want to visit the doctor as much. They look at cannabis as a medication and his fund is focused 50-60% Canadian cannabis companies with the rest focused on alternative medicine companies. He holds about 18-20% in cash in the fund presently to take advantage of any short-term sell off in the sector.

Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T) The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility near Edmonton, but he wonders if the growth will be staged and may be slower than people expect. Canopy also has an advantage given its size of existing product inventory.

Canopy Growth (WEED-T) vs Aurora Cannabis (ACB-T). The battle of the titans. Both companies do good things. He favors Canopy as it has a lower risk diversified growth strategy in 12 different facilities. He also likes the deal with Constellation for further diversification. Aurora is expected to grow with the expansion of the new facility near Edmonton, but he wonders if the growth will be staged and may be slower than people expect. Canopy also has an advantage given its size of existing product inventory.

Early Advantage for Canadian Marijuana. It is important for Canadians to understand that Canada is the first G7 country to legalize marijuana. Internationally, medical use marijuana can be shipped across borders, creating a great advantage for Canadian companies. He sees an early leader advantage to Canada for international trade. There are 40 countries around the world, representing over 1 billion people, who can legally use marijuana for medical use. He cautions domestic use in Canada may develop slower than people expect due to slow start to the number of legal outlets.

This is a company based in Uruguay, which also has a legal standing. Aurora has recently made a friendly takeover bid that has been accepted by both boards. This allows access to global distribution for Aurora.

This company helps to study the human digestive science behind the use of cannabis oils. He sees it as wait and see to watch if they can develop the technology.

A billion dollar market cap that trades on 12 times earnings – low for this space, which can see 30 times earnings. It has lower cost production in Quebec and good labour rates. They sell a spray oil that is innovative, which provides for faster onset – and has been award winning. They have a joint venture with Molson-Coors.

This company is involved in mobility (wheelchairs, etc.) and he sees them having very positive tail winds. They have a very good profit margin and a recent acquisition is viewed as being synergistic.

The company came out with very strong earnings – 12% growth y-o-y. Despite the run in share prices currently, he thinks there is still lots of runway. The companies touches on so many aspects of public health in the US and suggests politicians will avoid public cuts in spending going forward. He sees their growth continuing. Yield 1.3%.

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).

He likes the trend towards health and wellness through supplements and protein shakes. The company has been given a license to sell their branded product in China. His fund will continue to hold this stock.

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.

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.

Unfortunately their technology has been slowing getting out into the market and now they have a receivables collection financial issue. It does not look good, he says.

This company was founded by pharmacists who is globally focused in generic drug manufacturing in 115 countries. They win 38% of new patients added to new medical cannabis users. They hire doctors to educate doctors about medical usages. Yield 0%. (Analysts’ price target is $16.93)