COMMENT
They invest in all cap stocks, but there is higher growth in the small and mid-cap space. Cannabis has had a challenging year this year, but there is strong growth in fundamentals and revenues.
COMMENT
Have seen many indices hitting all time highs but there is a correction happening under the surface. Have seen the small and mid cap area not do much since March of this year. Now it is changing and we are seeing relative strength. As companies continues to grow, coupled with the fact we are heading into the strongest seasonal period shows good opportunity. Could see a broad-based market rally.
COMMENT
Due to the waves we have seen due to covid, we have seen hospitality and travel still affected. Delta caused things to be impacted and things slowed down again. There is always a lag effect to the economy. We will see more airline bookings and travel.
BUY ON WEAKNESS
Small caps have seen some correction, but the underlying fundamentals are growing. The business continues to move forward. What was considered telemedicine has now extended out to more services, such as employer plans. Top line growth is around 10% per quarter. They are profitable and has large cash positions to make acquisitions. Trading at half the valuation of WELL.
BUY ON WEAKNESS
Have been increasing production aggressively. They just acquired a company to add to their production. This acquisition should help them move from small cap to mid cap. It has had a nice move up from there. Looks attractive. Waiting for a pull-back.
COMMENT
Probably has to do with the steel market. The last few months have seen talks about China and their steel demand. All steel companies have dropped. Long term supply and demand with stimulus and infrastructure, looks like a long term secular move.
COMMENT
Has certainly been volatile. As it started to move up, there was a lot of interest in their renewable diesel. However, there was a short report that called into question of the company, as well as the plant delay due to the catalyst that was not mixed properly. Could take a chance on it and if all things go well, then it can move up. However, he is holding off until he sees these aspects become more concrete.
BUY
Has been a past top pick. A company he likes. There is a lot of tailwind behind renewable natural gas. Is positioned well for this. The stock price has pulled back from highs. Had a number of issues with the company and projects. It is now subsiding and the company should have a tailwind for decades.
HOLD
They continue to be challenged in Canada. They overbuilt growth facilities. What is more important is what they are doing with their US strategy. They have an option to own assets in the US if it becomes legal in the US. They also have a partnership for gummies. Starting to look at cannabis market has a global opportunity. They will have an immediate and dominant position if the US legalizes cannabis.
WATCH
Have an extraction technology that is different from competitors. Taken a long time for it to get to this point. Moving into production and some of their brands are moving up. Watching for the numbers in the next few quarters.
PARTIAL BUY
Certainly has been extremely strong. Customers love the brand. All stocks will pullback but who knows how much and when. Would wait to add to a position if you own it, and if you do not own it, then to take a partial position to start.
BUY
Certainly puzzling. They have partnerships with 2 US companies that gives them the right to market and sell their products in Canada. Top 10 companies in terms of sales. Chance that Canopy will buy out the company or do a partnership. Fantastic job with the edible market with 50% marketshare and growing revenues.
WATCH
Has diversified into other areas than straight flower production. Focusing on the US for cannabis. HEXO will survive in Canada. Has not seen much this year. There will be an acceleration soon. Has a dominant position in Quebec. Would look at buying into it.
WATCH
The accessory side is seeing a lot of success. A large retailer in Canada and now moving into the US. Could consolidate this space. A takeover target in the future as they accumulate stores in Canada and the US.
HOLD
A Las Vegas producer. Has had some challenges due to Covid. Things have ramped up since then. Facilities and management problems are now coming to an end and they are ramping up. As covid continues to subside, then it will help with their business.