The Morning Blunt
Volume 1| Issue 20
September 20, 2018
“Business opportunities are like buses, there’s always another one coming.”
– Richard Branson
Privateer Holdings Inc, backed by Peter Thiel, owns 76% of Tilray’s stock, making their stake in the company $12 billion and growing. This week Tilray surpassed Canopy Growth as the world’s largest cannabis company with a market value of over $20 billion.
Retail level investors are buying up overvalued Canadian cannabis stocks, one analyst compared buying the stocks to purchasing air. Overvaluation of these stocks is causing volatility in the market. Tilray was halted five times on Wednesday for volatility, ending the day at 38%. Check out what Sean Stiefel, the founder and cannabis portfolio manager of Navy Capital, has to say.
Tilray stock is already skyrocketing, but is there more to come? With deregulation, cultural perspectives changing regarding cannabis, and a slue of other catalysts aiding stocks through the boom, it’s likely that stocks will continue to climb.
After Alberta Gaming, liquor, and Cannabis Control released their pricing reports on wholesale cannabis, Cannabis retailers in Canada will experience tight margins. Because of the pricing on whole sale cannabis, retailers are likely to have to raise the cost of cannabis.
After Coca Cola showed potential interest in the cannabis industry, Aurora Cannabis stocks skyrocketed, causing Robinhood to cease trading for Aurora. With the demand for Aurora trading, Robinhood reportedly doesn’t have the resources to execute the amount of orders that came in after the announcement.
The irrationality behind the cannabis craze might resemble blockchain, however a big difference is cannabis is being seen as a commodity. Currently investors are turning the conversation into mania due to a handful of stocks being overvalued.
Aurora Cannabis completed it’s distribution of Australis’ shares and warrants. Australis’ shares and warrants began trading on the CSE as AUSA on Wednesday. The distribution Aurora was able to reimburse shareholders while financing Australis’ US expansion.
Cannabis concentrate sales are projected to reach $3 billion this year. Estimated to surpass flower sales, concentrates are expected to skyrocket to $17 billion in the next four years. Take a look for a break down of product types and their sale projections.
California will have one of the world’s most regulated cannabis industries after it implements a tracking system to follow each plant from seedling to it’s final product at the point of sale. With the new system will come complications and a learning curve for cannabis producers.
Tilray has received the go ahead from the US Federal government to import cannabis capsules for research to University of California in San Diego. The University went through a two year approval process to import the capsules because the single cannabis research facility in the US was difficult to work with, had poor quality product, and was unable to provide a capsule form of cannabis.
Real estate investment group Pelorus Equity of Newport Beach California announced the launch of the Pelorus fund, a commercial real estate fund worth $100 million. The fund will target new cannabis businesses looking to finance infrastructure.
Nuleaf Naturals highlights several studies of the effects CBD has on pain management. CBD has been said to reduce inflammation, reduce cancer pain, reduce anxiety and depression, and reduce symptoms of epilepsy. One study showed 42% of people who were given CBD for pain management ceased taking NSAIDs.
Estee Lauder is entering the cannabis market with Origins, releasing a calming facial mask with a CBD infusion. With the image Estee Lauder has in the cosmetic industry, their brand is likely to help change the image of cannabis products.