Cannabis Investing Network

In this episode we talk about the unbridled optimism in the general equity markets and how that flows into cannabis.  - SPY is 7-10% HIGHER than it was 1 year ago - Market effectively pricing in V shaped recovery - Does this make sense? Should investors be buying? - The importance of a margin of safety in investing - How cannabis has been buoyed by the broader markets - The "Big 4" MSO: GTI,...

In this episode we delve into understanding the disconnect between real life and the stock market. Why is the S&P above 3,000 when the economy is frozen? Why are cannabis stocks on an absolute tear? Does this make any sense? What can we learn from this disconnect and how does it influence our investing philosophy? Two Key Principles: 1. Anything can happen in markets 2. Nobody knows what will...

After a strong week for cannabis stocks we delve into the reasons for optimism for cannabis investors. 1. Strong Results Prove out the Investment Thesis      a. GTI posting 25% EBITDA on $100M USD of revenue      b. TRUL likely to post 50%+ EBITDA on similar revenue 2. New Markets set to Open      a. NJ (9M) and AZ (7M) bot...

In this episode we examine the key take aways from Berkshire's 2020 Annual General Meeting (AGM).  Why did Buffett sell his entire airline holdings (~$6.5B) at a loss? What can we learn from the legendary investor with regards to his view on the current market? We also discuss how we look at investing from a long and short term lens. Can we really be long term investors in this space? Are we...

In this episode we touch on the recent developments in the general markets and cannabis stocks.  The market has rallied considerably in the last few weeks to within 15% of it's pre-COVID all-time highs. Does that make sense? Why is it reacting this way? And what's with the recent cannabis rally? We go through what we think is happening and why you should exercise caution before chasing the dr...

Happy 4/20! In this episode we take a step back and review how much the cannabis industry has advanced in the last year. 1. From Boom to Bust - how the capital markets overshot and are now correcting 2. Milestones - major progress has been made in the last year 3. Is it a good time to invest in cannabis? Positives and negatives

Is the S&P 500 overvalued or cheap? That depends on what you think the "new normal" will be. In this episode we discuss how the economy may look very different post-COVID and how long it could take to recover: The strong market rally - what are investors thinking? 3 reasons why the future normal could be very dissapointing 1) Record high unemployment - 16M+ new claims in the last 3 weeks (stag...

In this episode we dissect the recent market rally and urge caution that there is much more pain to come - How Deep will COVID go? How long will the lockdown last? - Is it time for investors to be fearful or be greedy? - Reasons why the market is underpricing future risk - Buy/Sell/Hold - what makes sense? - How Alternative Investments fare when the general market corrects - How fundamentals and v...

In this episode we delve deeper into the market mayhem that has happened over the last 10 days - things have changed for investors. - How long will the COVID shutdown last? - How deep will this go? How bad will it get? - How should investors change the way they look at the markets (broader markets vs cannabis) - The worst is yet to come - our thesis on how the next few months could play out - Why...

In this episode we do a 180 on coronavirus and admit how we underestimated the virus and its potential to completely turn our economy and life upside down. We dig into how markets are reacting, how bad it is going to get and how this will ultimately affect broader markets and of course, cannabis investing. - We were 110% wrong - here's what we underestimated - The Shutdown: stopping the virus mean...

In this episode we explore the irrationality and panic which has pummeled stock markets and absolutely brutalized cannabis markets.  We also something of a market update where we discuss news on Canopy, Cresco, Village Farms and the Florida Market. - What happens when there is a panic and a "rush to the exits" - What we are seeing in the market today - Does the market know more than you?&nbsp...

In this episode we talk about the recent pummeling the cannabis markets (along with the broader markets) have taken due to Coronavirus fears. How does this relate to our on-going thesis of a 2008-style cannabis liquidity crisis? What are we buying right now? - What is going on? How Corona is affecting broader markets - Are the fears overblown? What potential risks are there? - How does Corona affe...

In this episode we emphasize the importance of digging into a company's financials for yourself to see if any warning signs are present. It is CRITICAL you are looking at a company's financials (sedar.com)  - How we realized there was a "mass extinction" event coming - Why we sounded the alarm bells 30 days ago - Learning from the companies who went broke: DYME as a case study Warning Signs:...

In this episode we go over mistakes we made in our cannabis investing decisions and how we've improved our game since. This is especially important as we are seeing investors repeating the same mistakes. - Where did we go wrong? The importance of humility and continual learning - Checking your ego at the door on the way up - Investors are not learning - same mistakes are being repeated - Deals "pr...

Hello CIN listeners! In this episode we talk about Aurora and other companies who have cut jobs. How do we right the ship? How do we fix the existing mess that we are seeing?

Although we continue to warn investors for the fallout about to occur we also want to explain why we are still actively investing in the cannabis space. In this episode we discuss the major factors which will drive the sector longer-term: 1. Canada - 2.0 Product Ramp & Ontario Retail Stores (~500 expected by end of 2021) 2. New Markets - International (Mexico, Israel, EU) + US (New Jersey, New...

In this fun episode we talk about what we've seen in Toronto for Cannabis 2.0 Products. Some topics we cover: - The Rollout of 2.0 Products - Types of products we've seen - Which products are selling the best - Concerns for the future - Some of the best products we've seen so far

In this week's episode we digest our warning from last week and discuss some issues which have come to the surface. Many of these are warning lights flashing for weed investors to exercise caution: - How we got here: people are not paying attention - BMO issues an optimistic Price Target on Canopy for $40 CAD. Why this matters (and why they're wrong) - Discussing Medipharm's $9.8M CAD statement of...

In this episode we discuss several types of bias we see in ourselves and other cannabis investors. The ultimate goal is to understand patterns of thought and adjusting to make better investing decisions. - Understanding your own bias from your investing background - Dissociating your political opinions from business reality - Avoiding group think and online echo chambers - Be careful of confirmati...

In this episode we lay out a serious warning to our network about the potential for an impending capital & liquidity crisis for the cannabis sector in 2020.  Companies are rapidly burning cash and financing is very tough to secure. Many companies (especially smaller ones) are running out of runway faster than you might think. Why is no one talking about it? - What is going on? - Fundament...

In this episode we make some predictions for what is to come in 2020 for cannabis investing. In this episode: 1. "The Great Divide" - Winners & Losers Emerge - Mentality will shift: sector will stop moving as one and winners will emerge - Shifting from ETF mentality to stock picking (from passive to active) - Example: Trulieve should separate from the pack given their isolation in Florida and...

Happy New Year! In this market update we cover the good and bad for the start of 2020! - 2020 will be a year of Strong Catalysts driven by Fundamental Growth - There will also be significant headwinds to navigate Illinois Goes Full Rec: - Banner first day with $3.3M USD sales + $2.2M on 2nd day - $11M USD of sales in 5 days (with customers paying $20 USD/gram of flower) - Illinois will be a great...

If you are not changing the way you invest going into 2020 you are in trouble! In this end of the year episode we recap the top 5 lessons learned for Cannabis Investing.  #1 - No Excuses, Play Like A Champion - Every investor is the CEO of their own account - Take full responsibility for your own results and learn from your mistakes - "It's not your fault but it is your problem" #2 - LEARN LE...

In this episode we talk about how we kick the tires on potential private investments. - How we evaluate potential private deals - Mentality behind venture investing - Potential Red Flags & Deal Killers - Personal Frameworks for Evaluating Private Deals Next Week: Stay tuned for fresh episodes on 2020 predictions and top picks!

In this episode we explore 4 common overhangs which can weigh on Cannabis Stocks. Most of these things are unique to small cap and venture investing. - Overhang: Factor which negatively impacts a stock (typically short to medium term) - How this helps answer "Is This the Right Time to Buy"? 1. Cap Table / Share Structure - Understanding the importance of the cap table - Why previous rounds of fina...