The Morning Blunt
Volume 2| Issue 2
October 2, 2018
“It is always the simple that produces the marvelous”
The Street’s Jim Cramer formally backed Canopy Growth as the only cannabis stock to consider owning as other stocks are volatile and less secure. To better educate investors, Jim Cramer, Bruce Linton CEO of Canopy, and the COO of Constellation Brands Bill Newlands are hosting a Teach In on Oct. 13th.
Cannabis short selling interest is at an all time high up 52% hitting $3.1B in September. According to Ihor Duswaniwsky this much shorting across an entire sector is unprecedented. John O’Connell believes the data may reflect naked shorting. O’Connell advises to let the sector settle before short selling as the odds are comparable to gambling.
According to Motley Fool’s Keith Speights the top three cannabis stocks to purchase in October are Canopy Growth, CannaRoyalty, & Scott’s Miracle Gro. According to Speights these are long term solid investments that are less risky than more volatile stocks.
Accesswire of Yahoo Finance reported three stocks that are currently benefitting from the cannabis industry, Leafbuyer Technologies Inc, Cronos Group, and Liberty Health Sciences. Accesswire explains why these three stocks are their pick for October.
Tilray and other cannabis stocks generally rose early Monday after Tilray announced it’s subsidiary High Park Farms received a cultivation license. India Globalization Capital Inc. was also standing out with an 18% rally after announcing their intentions to produce CBD infused beverages. CBD has been of increasing interest in the beverage community.
Jim Cramer discusses John Flannery General Electric’s CEO who is stepping down after 13 months, Tesla’s CEO Elon Musk made a deal with the SEC last week, Cramer also discusses how NAFTA is no longer NAFTA, and how pot stocks are doing in the market.
Canadian cannabis firm Aphria Inc has positioned itself as the next cannabis investor in Latin America and the Caribbean through purchasing the assets from international cannabis firm Scythian Biosciences Corp. Aphria will have rights to Argentina, Colombia, and Jamaica.
AusCann announced it’s joint venture company in Chile DayaCann signed a non binding agreement with Canadian medicinal cannabis firm Khiron Life Sciences, potentially giving AusCann a monopoly on the Chilean market.
According to information gathered by Ameri Research Inc. the global cannabis consumption through legal channels is expected to increase to $63.5B with an expected annual compound growth rate of 21.1%. Check out some of the most interesting companies participating in this growth.
Massachusetts Cannabis Control Commission is struggling to bring state recreational cannabis to life. The expected date for recreational shops to begin opening to the public was July 1st however departmental delays have postponed the state’s legalization day. Provisional licenses are awaiting inspections and approvals while the understaffed state department attempts to play catch up.
Since medical cannabis was approved in Oklahoma over 1,100 business licenses have been filed, 600 of those were cultivators and 400 licenses were filed for dispensary locations. Roughly 500 applications are awaiting processing. With over saturation a near guarantee, it begs the question how successful will some of these businesses be?
Northern California cannabis producers have been struggling to perform all the tasks required for state compliance, brand their products, establish supply agreements, and have their material processed. Loudpack established The Legacy Program to assist farmers in branding their products and getting them on the shelves across the state, allowing the farmer to get back to farming.
After a summer of logistical concerns and increased cost due to shifting regulations and testing requirements, Northern California has experienced layoffs, business closures, and downsizing. For a full rundown on the upcoming changes being implemented in December check out what North Bay Business Journal reported.
Organic Designations For Cannabis?
Some cannabis producers in Colorado want to establish an organic cannabis designation to set themselves apart from producers who use pesticides and synthetic fertilizers.
Canada’s investment banks are the real winners of the green rush. According to PitchBook, boutique investment firms including Cannaccord Genuity Group Inc., PI financial Corp., and Eight Capital have guided IPOs and reverse mergers worth more than $200M.
CO2 GRO Inc. announced the results of their foiler trial test, which yielded a 45% increase in commercial grown cannabis value, and a 74% increase when including the amount of THC that was produced. The trial included 120 controlled plants that did not receive the foiler and 120 plants that were foiled with GRO’s CO2 Foiler Spray.
Take a look at the top ten millionaires in the cannabis industry and how they became the wealthiest names in cannabis.