Pot Stocks are at the very top of our whiteboard. We believe the cannabis investment theme represents the single best emerging and new investing opportunity in the stock market today for those with a 1 to 3 to 5 to 10 year investing horizon. 

I’ve been investing for over 30 years and what I can say with absolute certainty is that about once a decade a new investment theme emerges that offers investors the opportunity to increase their net worth in a significant way. I’m referring to paradigmatic shifts in investor perception of an industry not small advances in cyclical businesses. 

I entered the professional stock market investment world in 1993 at the dawn of the investing super cycle in a new theme called the internet. At the time people still used a letter opener for their mail instead of a small furry rodent. The established investing community believed in making investments in companies with real names not titles as silly as Yahoo and Google and Amazon. I don’t need to tell you how powerful that investment theme was and still is 25 years later. The next game changing theme in which I was a witness and active participant was the mapping of the human genome. Remember that fascinating process at the turn of the century? We identified one of the biggest beneficiary of this watershed event and invested in the company at a split adjusted price of $3.50. Today 20 years later the stock trades at over $300. The name of  the company is Illumina (ILMN) and that my friends is how you build wealth. 

Today I’m starting a Blog post that I will continuously update designed to monitor the Marijuana investment super cycle unfolding right before our eyes. I will post news stories about companies that we believe have merit, regulatory stories that impact the theme and general Cannabis information to educate the investor. 

Please do not use this Blog post to blindly invest all your capital in this generational investing opportunity today. The process of identifying the best Marijuana investments will take time and hard work. You must do your own work and invest according to your risk tolerance.

When I first came across the great investing opportunity Yahoo (YHOO) in 1993 the stock was trading at $30/share. Listen closely now, three months later the stock was trading at $15. Did that mean the internet was a bad investment idea? Should I have given up on YHOO because it dropped 50%? Of course you know the answers. Remember this anecdote as you begin your research on the Cannabis investment opportunity. I thoroughly expect extreme volatility at the beginning of this incredible investment cycle. Use the weakness to build positions and never stop doing the fundamental work to unsure you own the biggest beneficiaries of the Cannabis Marijuana Hemp super investment cycle.   

Should you wish for more guidance on the what and when feel free to contact me and I will share information we have gathered from management contact and other tried and true fundamental tools we have used over the decades to increase net worth in a meaningful way for ourselves and our partners. 

Stocks To Watch

Canopy (CGC)

$5 Billion Constellation Brands Investment  (STZ)

Cronos (CRON)

(OTC:CRON)  STRATEGIC PARTNERSHIP WITH ALTRIA TO ACCELERATE GROWTH AND INNOVATION

Tilray (TLRY) 

Tilray Surges After Privateer Holdings Vows to Hold Stake Until At Least H2 2019

1/11/19 — Tilray Inc. (TLRY) shares surged Friday after its biggest stakeholder said it would hold onto shares of the Canadian cannabis company until at least the second half of the year. 

Privateer Holdings, a a Seattle-based private equity group that limits its investments to the cannabis industry that owns an estimated 76% of Tilary’s outstanding shares, said it has a strong belief in Tilray’s long-term global growth strategy and its “pioneering role” in shaping the future of the legal marijuana market. 

“We do not have plans to register, sell or distribute the shares Privateer holds in Tilray during the first half of 2019,” Privateer managing partner Michael Blue said in a statement. “When we decide to distribute shares, we will do so in an orderly and deliberate manner to maximize tax-efficiency considerations for Privateer investors, while also taking into consideration potential impacts on Tilray’s public float. And we will do it in a way that reflects our long-term confidence in Tilray’s business model and management team.”


Novartis Teams Up With Thiel-Backed Canadian Marijuana Startup 

Tilray partners with Novartis in Big Pharma’s first deal of its kind with Big Marijuana

Tilray Strikes Cannabis Drinks Research Deal With Budweiser Parent; Stock Jumps

NEW ADDITION 1/17/19: Charlette’s Web (CWEB)  

rcmTake: This is the best positioned CDB retail company for growth in the here and now. Great IP making a superior product and one of the original pioneers. Now company is gearing up to go from cottage industry to mainstream with solid management team.

Up coming catalysts:

New CEO announcement to go along with new Coca-Cola executive

Listing shares in the USA on NASD

Big retail partnerships.

1/15/19 Charlotte’s Web Hemp Harvest Increases 10X, Building Inventory to Meet Growing CBD Product Demand

1/3/19 Charlotte’s Web Names Former Coca-Cola Executive Eugenio Mendez as Chief Growth Officer and Announces Leadership Evolution Plans

New Age Beverage (NBEV)

New Age Beverages (NBEV) Announces Merger With Morinda, Inc., Creating A Combined Company With $300 Million In Revenue And $20 Million In EBITDA

Aurora Cannabis (ACB)
Provides Guidance for the Second Quarter of Fiscal 2019, Anticipating Net Revenues of $50M to $55M

EDMONTON, Jan. 8, 2019  – Aurora Cannabis Inc. (“Aurora” or the “Company”) (TSX: ACB) (NYSE: ACB) (Frankfurt: 21P; WKN: A1C4WM) today provided an expected revenue range for the second quarter of the Company’s Fiscal 2019 (“Q2 2019”), the period ended December 31, 2018. Full results will be published on Monday, February 11, 2019 pre-market, followed by a conference call later that day, details for which can be found at the end of this release.

Based on preliminary (unaudited) results, the Company anticipates revenues for Q2 2019 of between $50 million and $55 million (net of excise taxes), compared to $11.7 million for the same quarter in the prior year, and compared to $29.7 million for the previous quarter ended September 30, 2018 (“Q1 2019”). The results reflect an anticipated revenue growth rate in excess of 327% compared to Q2 2018 and in excess of 68% compared to Q1 2019.

Aphria (APHA) 

ARMR Report: This is not a preferred company to own on our whiteboard. However, this news is worth paying attention to because of the reaction to come. During this Bear Market any and all positive news about Pot stocks has been met with aggressive selling. So, we will watch this cannabis stock to see the reaction.

12/28/18 Co. says unsolicited proposal by Green Growth Brands significantly undervalues the company (5.57 ) 

Based on the 20-day volume weighted average price of GGB shares and the expressed exchange ratio of 1.5714 common shares of GGB for each Aphria share, the proposed bid would be approximately 23% below the Company’s average share price over the same period. Aphria shareholders should be aware that the value of GGB’s per-share offer is based on a hypothetical valuation of its own shares, with no relation to the current price. 

  • GGB’s management presented the offer to Aphria the morning of December 27, 2018, and immediately went public with its proposal, less than six hours later and after the market closed on the same day. The Board believes that GGB is attempting to acquire the company through a highly conditional offer at a significant discount to its current and future value. 
  • Irwin Simon, Chair, said, “While we appreciate GGB’s interest in the value we have created at Aphria and our significant growth prospects, their proposal falls short of rewarding our shareholders for participating in such a transaction. Further, the proposed offer is quite risky given GGB’s condition to complete a brokered financing at a price that is more than double the recent average of their share price, as a key term to the proposal…The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company.” 
  • The Aphria Board of Directors has established an independent committee of directors to consider this proposal and any formal offer received. 

Green Growth’s Hostile Bid On Aphria Is Simply A Publicity Stunt

Impact News

Top cannabis analyst on Wall Street raises sales forecast, names top 2019 picks

  • Wall Street’s top cannabis analyst issues her 2019 outlook for the industry, updating clients on her U.S. outlook and the key players in 2019.
  • “We expect continued growth in newly established U.S. states, and more robust growth in Canada as more supply comes online,” Cowen’s Vivien Azer writes.
  • Azer says that the adult use market got off to a rocky start thanks to a rushed retail framework, but says planned expansion should ease concerns.
  • The U.S. market opportunity is valued at around $40 billion to $50 billion and expected to grow to $80 billion by 2030 assuming legalization, Azer adds.

One of Canada’s largest investment banks wants a piece of the $194 billion marijuana industry

  • The Royal Bank of Canada’s investment banking arm is moving into the marijuana industry.
  • “We’re going to be selective in our approach, frankly, but within the bank we’ve established a policy that we’re comfortable with,” RBC Capital Markets head Doug McGregor told Bloomberg in a Tuesday interview.
  • RBC joins the Bank of Montreal in initiating coverage and actively pursuing deals in the marijuana industry.

rcmTAKE: One of the main reasons Pot stocks continue to suffer in the midst of overwhelmingly great new is the lack of institutional investment into this theme. These Cannabis stocks are primarily owned by retail investors and short-term traders. In a general Bear market, which the stock market is in currently, the lack of institutional ownership adds to extreme volatility and close to zero long term support. The RBC move into the investment banking opportunity will lead other major investment banks to join. As the big banks enter the space so will analyst coverage leading to institutional ownership. The best investment opportunities for individual investors in history coincides with the beginning of a tidal wave of institutional accumulation. Investors that own a theme during this period can build their next fortune.

Altria Confirms 35% Juul Stake After Big Cannabis Investment, Guides Low On Earnings

rcmTAKE: Altria for Juul is actually a Marijuana story not a Tobacco story. $MO puts $1.8 Bil into $CRON to develop Cannabis IP that will go into Juul vaping IP. Smart move.

The Farm Bill, hemp legalization and the status of CBD:An explainer 

Statement from FDA Commissioner Scott Gottlieb, M.D., on signing of the Agriculture Improvement Act and the agency’s regulation of products containing cannabis and cannabis-derived compounds 

NFL hopes to ditch marijuana ban via collective bargaining

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