General Market Comment. He says last year was the lowest level of volatility on the VIX, now it has returned to a more normal level. The big change is that the medium and timeliness of “fake news” is now instant. Investors should not react to all the noise. Now if you want to spread a lie, it can be dispersed quickly. He prefers his information in print form.
Marijuana Industry. He sees this and cryptocurrency as being fascinating. The key is to correctly choose the future winners. Second Cup (SCU-T) is hoping to be able to distribute cannabis – he is not sure they will be. There are too many questions about legislation. If you see mining companies announce they are moving into this space, beware.
This is a beautifully run company with revenues of $300 million per year. They are into anything rubber. The balance sheet has not changed in years and they recently increased the dividend. He thinks today’s current price is still expensive so would not buy it here. If you owned it for the dividends you should hold.
This company has seen revenues drop from $1 billion to only $800 million. They have recently exceeded their debt covenants and could do so again soon. The new CEO is a teaching CEO who sold two tech companies in the past for huge premiums. He paid over $3 per share for this and it is not looking like a great investment. He feels with the right person running the company it has a good chance to recover. He will hold.
He paid $0.25 and sold out at $3.00. He is not going to cry about missing the recent upside. He likes the company and the CEO and likes their beer. The stock price is too high now and he would think of selling. It is weather dependant and seasonal. They started paying a dividend about two years ago.