Marijuana stocks

These stocks were a hit in the last several weeks, but we still cannot be sure of the state of the market and what the real demand will be. Fires may devastate the harvest, so for companies there could be opportunity for growth. Brands and additional products are also something to think about, when investing in this sector. You can hear more about those kind of companies on CNBC.


Michael Decter on Marijuana Stocks

Has been investing. Trading them. Bit worried about valuation. Combined market cap of Canadian public companies is $20B vs. a $5B market size. Sense that in October, lack of supply will help price shoot up, but he’s not so sure. Blueprint will be different in each province. Not quite as crazy as the era, but there will be consolidation. He’d stay with the bigger players like Canopy Growth. Look to the US for much lower multiples.

We cannot know surely whether there will be lack of supply making prices go up, so the recommendation for the sector is to stay with bigger companies.