- Page 1/4
- Next Page
BUY
A cannabis player focussed in Nevada with a CBD and THC lines that they can sell throughout the U.S. They have a head start on their competitors. They have an extraction specialist who helps produce a lot of products licensed for Nevada. Their products are super-high margins and often sell out, but they've had small cultivation facilities. It's hard to get trimmed product in Nevada, but that will change when they open an 80,000-square-foot facility in Las Vegas. TGIF is a core position for him. Their new operations should start working in the fall which will boost revenue and cash flow. Investors expect facilities to start working sooner, but he expects a significant boost in revenues 18 months from now.
agriculture
COMMENT
An extractor of cannabis. In America, the vape market is growing the fastest as smoking dry flower declines. VGW has built extraction expertise in different lines of extraction (CO2, ethanol); they have the only facility to extract butane in Canada. They're increasing their facilities to produce a gel-cap line, which will sell to the pharmaceutical side. They will continue to gain market share.
agriculture
DON'T BUY
He's look at this many times, but never bought it. Pipelines still need to be approved, despite more talk about them. Co, crude-by-oil will endure, and everyone wants to make this safer. KLS has the technology to do this though their tech hasn't been mass-adopted. He'd like to see accelerated growth and earnings first. However, if pipelines are built, then there will be less crude-by-oil. He's on the sidelines.
INDUSTRIAL PRODUCTS
WAIT
Why is the price dropping? He respects the CEO and has long owned DIV. The founder thought the restaurant-royalty business and understands it very well. He's looking for more opportunities in this space. The sell-off is due to DIV's payout ratio, which is slightly over 100. This could change if a new opportunity arises and therefore push down that ratio.
Financial Services
WATCH
He likes the California cannabis market which is fragmented and dominated by illegal dealers. What percentage of beverages is in cannabis? It's still very low. And what's happening to alcohol sales in areas of legal weed? Down 10-25%. So, they need an alcohol-like profile through cannabis. Tinley has a strong management team experienced in beverages and has the potential to take off in adopting cannabis. He's watching TNY closely.
PAST TOP PICK
(A Top Pick May 10/18, Down 68%) He still likes it. What happened was BUX got delayed getting the buy-USA certification and faced tariffs because they manufacture components in China then assemble them here. So that's all led to a delay in a ramp-up to the U.S. However, most competitors have exited this sector and customters love their buses. It comes down to things happening later, so wait. When orders ramp up, he will buy more shares. They have twice as many opportunities in the U.S. than Canada.
Transportation
COMMENT
A past pick. They've executed very well in the past five years from furniture leasing to consumer financing. They are increasing their loan book. They've done very well in a tough environment, keeping loan losses down. But don't own this in a recession. They're hitting new highs now and could double.
Financial Services
COMMENT
A super high-growth company but such companies which usually suffer lumpy returns. What kind of valuation can you put on this? Peers trade at 30x earnings with 20% growth in this sector. GOOS is less than that on a PEG ratio standpoint, so they have room to grow on a multiple and earnings standpoint. The stock fell after missing their last quarter. Maybe it was a one-time blip. Their shops in malls attract lines, so that indicates healthy demand. Doesn't pay a dividend.
clothing
