The Morning Blunt
Volume 2| Issue 18
October 18, 2018
“You earn reputation by trying to do hard things well.”
Cannabis is now legal in Canada however pot companies plagued by supply issues expect rocky starts in the market. Stocks were down Wednesday on part of cultivation issues, however retail locations are also at a premium with the entire province of British Columbia only opening one store Wednesday.
Investing in cannabis stocks are hot as Canada transitions into legalization. Greg Taylor portfolio manager of Purpose Investments joins BNN Bloomberg to discus active and passive approaches to the cannabis industry.
BNN Bloomberg’s Amanda Lang dives into why cannabis stocks may flop after legalization.
Check out three ETFs that make it easy to invest in cannabis, EFTMG Alternative Harvest ETF, Evolve Marijuana ETF, Horizons Emerging Marijuana Growers Index ETF. These green rush ETFs are diverse and offer a wide range of cannabis businesses.
Between Tilray and Aurora Cannabis, Aurora is probably the better buy. Aurora has far more infrastructure, production capacity, sales, and their price to sale ratio is also better. Finally, Tilray is operating under lock-up restrictions preventing shareholders from selling off, however that will end in January, leaving Tilray open to a possible price crash.
On Canada’s day of cannabis legalization, CEO Derek Peterson of Terra Tech Corp. took out a full-page ad in the New York Times asking Donald Trump to pass legislation to help the US cannabis industry stay relevant in the global market.
Price collapse and the bureaucratic levels of paperwork required for legalization in California have begun what some are referring to as an “extinction event” in counties like Mendocino, Humboldt, and Trinity.
Check out which US companies stand to gain the most from Canada’s legalization of cannabis.
Colorado’s talent in the cannabis industry are among the elite professionals in the field. As Canada legalizes cannabis, attempts to poach workers from Colorado has increased. Salaries for director of cultivation now ranges from $47k-$250k annually.
Texas democratic congressmen Beto O’Rourke has brought some unexpected excitement regarding cannabis legalization to the 2018 US Senate race. O’Rourke has been progressive on the taboo topic for years in a state with low voter turn out and high arrest rates for cannabis.
Canada just became the second country in the world to legalize cannabis. Legalization is likely to have a huge impact on the Canadian economy, take a look at what to expect.
Canada’s legalization is off to a slow start with supply problems, limited retail locations, and new regulations clouding the fledgling market. Retail locations that did open across Canada had lines of hundreds of people and sold out quickly.
Canada’s legalization marks the end of prohibition but what about those 500,000 individuals with marijuana convictions? Some argue that these crimes should be expunged. Update: Canadian’s convicted of crimes with 30 grams or less of cannabis possession will have their records expunged.
Canada’s admitted it was wrong about prohibition and legalized weed after Prime Minister Justin Trudeau argued that legalizing cannabis would eliminate a black market and thus would protect children.