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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 now. Valuation is still fairly reasonable. There is probably a lot of opportunity for this longer-term.
This has done phenomenally well. They are still in the early stages of great things. So far, they’ve rolled out across Canada, they’ve got initials orders from a number of different transit systems in Canada, and now those transit systems are coming back ordering big multiples of what they initially ordered. They are also a little into the US. There are really 2 big markets in the US, 1) transit market and 2) private transportation such as airport shuttles, rental car shuttles, etc. They needed their “Buy and Build America” certification before getting started in the transit market. They now have that. They have a partner that has just started to ramp up with the sales team. During this year, you are probably going to see a number of announcements where they are getting initial orders. He is excited where this company could be 3-5 years from now.
A cannabis company that has come roaring on to the scene. They were probably a little slower coming out of the gate than what you saw from a few of the others. This one is proposing a greenhouse project at the Edmonton International Airport, which is being billed as the world’s largest indoor cannabis grow when finished. They have about $150 million on their balance sheet now, that will be used to fund projects. Looking at valuation versus their licensed sales capacity, they are certainly ahead of the others from a valuation standpoint. As long as they continue to execute, it is probably going to be good, however the CEO tends to be a little on the promotional side. If you are a trader, take advantage by Selling when everybody loves it.
Not one of the Canadian cannabis producers, but works out of the US. Rules are a bit different. This is going to be a huge business internationally over the next 10 years. He likes to equate this to 1933 when Prohibition ended in the US, but in this case it is really going to be a global market and roll out at different times. He is watching to see what they do. He would prefer something like iAnthus Capital Holdings (ITHUF-US), which is more on the financial side versus the straight operation side.
One of the most hated stocks in Canada. They were on a huge acquisition spree a couple of years ago, but have bought a company called Fleet Management, which did an excellent job of growing their business. The 2 men in charge took over a big mess. They right sized the company and sold off some stuff and closed down some stuff and brought their bad debt expense down. They’re growing the company at a phenomenal rate, 25%-30% per year. Just posted the 1st quarter where they generated cash, so they are cash flow positive. The valuation is super cheap, trading at less than 5X. The stock price could triple from here and still be cheaper than something like a Savaria (SIS-T) or a CRH Medical (CRH-T). Too cheap to ignore.
Great company. They continue to grow by acquisition as well as organically. 1998 was the last time they issued stock. They are going to do a 5 for 1 split, which is being voted on in May. The splits have nothing to do with math, but everything to do with psychology. Dividend yield of 0.79%. (Analysts’ price target is $325.00.)
