The Morning Blunt
Volume 1| Issue 23
September 23, 2018
“Strive not to be a success, but rather to be of value.”
The Wall Street Journal reported that Alternative Harvest exchange fund share holders were overpaying for their shares last week. Of the popular stocks that the company invests in are Tilray, Aurora, and Green Organic Dutchman, driving the cost of stocks through the roof. However there is speculation that Alternative Harvest replaced key representatives within the company and may be off to a rough start.
Horizon’s ETF Management to Include Tilray
Horizon’s ETF Management, a cannabis fund management firm will include Tilray among it’s trade stocks.
Forbes’ Mike Adams debunks a few myths around the cannabis industry, warning investors from placing imprudent bets on risky stocks. Aside from overvaluation, Adams discusses the difficulties behind investing in cannabis stock along with the politics surrounding the US, and why Apple is a better investment than canna-stocks.
According to Motley Fool’s Corey Renauer in the comparison of Aphria and Cronos Group, Aphria would be the better investment because of company footprint and a lower production cost but neither of the two companies are solid investments.
Keith Speights of The Motley Fool covers three of his favorite cannabis stocks and why. According to Speights, CannaRoyalty, Liberty Health Sciences, and Planet 13 Holdings are three viable options with small market capitalizations that are targeting the US markets.
In an examination of Auxly Cannabis Group Inc and Canopy Growth Corporation, it is often presumed a smaller stock might be a better investment, however in this case Keith Speights argues that Canopy might be the better pick.
While cannabis will legalize in Canada on Oct. 17, consumers will have to wait another year to purchase extracts, edibles, and concentrates. This gap has left an opportunity for black market extractors, retailers, and dealers to capitalize on the fastest growing sector in the industry.
Edmonton police have decided to continue to use their current roadside procedure for suspected cannabis impaired drivers. The reason behind the decision was the breathalyzer offered to officers has difficulty functioning in cold weather and can only detect cannabis and cocaine. The police force would like to see a device that can detect more substances reliably.
VIVO Cannabis is a lesser known stock trading at less than $2, with a market capitalization of $500M. The company recently acquired Canna Farms and intends to expand to European and Australian markets.
Scott’s Miracle Grow and KushCo Holdings are two well known ancillary cannabis businesses, however two ancillary businesses to keep an eye on are Cannabix Technologies and Eaze. Cannabix is focusing on developing a cannabis breathalyzer for law enforcement use. California’s Eaze is an app based cannabis delivery service delivering cannabis within twenty minutes to consumers.
Law enforcement measures have ramped up against unlicensed cannabis businesses in California this last year. The philosophy behind the measures are hopes that cracking down on illicit businesses will deter other black market operations and allow the legal industry to thrive, while encouraging others to go through the proper channels to obtain licensure.
The US federal government’s stance against cannabis has left businesses in the industry scrounging for basic business services. Business owners are unable to get insurance or practice banking in a cash only business, leaving large amounts of capital susceptible to a variety of vulnerabilities. In California Golden Bear Insurance Co. is turning this around by offering coverage on the loss of revenues due to equipment breakdown, workers compensation, and liability. Lloyd’s in London is offering limited services to Canadian cannabis businesses.
Santa Barbara cannabis might become boutique grade weed if California’s appellations process is decided upon and approved. Establishing the county of where cannabis came from similar to wine could add value to a brand based on location alone. According to locals, cannabis grows differently region to region, and the appellation process would add value to an otherwise forgotten cannabis region.
After a two year struggle, five year Brooke was allowed to attend public elementary school at Village Elementary in Santa Rosa California, and bring her cannabis based epilepsy medication. The emergency medication soothes her severe seizures.
While investors and corporations are eyeing the cannabis market, scientists call for more research into the effects of cannabis and CBD specifically on public health, psychology, and the various claims on packaging asserting the health benefits of CBD.
Alachua Florida is seeing an upswing of medical cannabis cultivation. Canadian cannabis firm Liberty Health Sciences announced the opening of it’s second medicinal farm in the county. The firm employs over 200 employees and is proud to be vertically integrated which allows them to claim a seed to sale reputation.