Cannabis: Best 10-Year Growth Opportunity?

Published on
September 26th, 2018
26 minutes

Cannabis: Best 10-Year Growth Opportunity?

Skin In The Game ·
Featuring Todd Harrison

Published on: September 26th, 2018 • Duration: 26 minutes

Todd Harrison, CIO of CB1 Capital, has been a long-time follower of cannabis stocks, and has often championed their mainstream applications in the pharmaceuticals industry. In this interview with Brian Price, Harrison explains how the growing understanding of the plant's healthcare applications puts these stocks on the cusp of international and institutional acceptance. Filmed on September 20, 2018 in New York.


  • SS
    S S.
    26 September 2018 @ 11:30
    Cannabis stocks are in bubble territory right now, reminds me of the 3d stocks and bitcoin before they epically crashed.
    • EC
      Edward C.
      26 September 2018 @ 12:10
      Some stocks are indeed no more than Tilray at 20 bn market cap before that halved the last few days, but I think your generalist comment is myopic. Some real PnL to be realised in this space if you back the right horse
    • TH
      Todd H. | Contributor
      26 September 2018 @ 12:38
      some are, yes; but look at the global index. far from a bubble my friend.
    • AZ
      Arthur Z.
      15 October 2018 @ 11:50
      How can you have a global index when it’s still illegal in most countries? It’s most definitely a bubble. Stocks are priced for future profits in the hundreds of billions and assuming the developed world will legalize weed. To many variables that need to go right for these valuations to exist. Not to mention the US and China are far from mainstream adoption. Just like the dotcom mania; things will correct and the Amazon’s and Facebooks will emerge from the ashes.
  • AZ
    Arthur Z.
    15 October 2018 @ 11:43
    If Cannabis has so many medical applications and is entering a massive bull market; why haven’t we seen more advances from countries like Amsterdam where weed has been legal for decades? I definitely see the impact it can have on some medical applications but have you ever tried to hold a conversation with a stonier? Not fun. Are we all thinking that this mass adoption of weed is a good thing? I’m all for legalization but hope I don’t have to deal with more and more burnouts.
  • SL
    Stephen L.
    4 October 2018 @ 11:35
    FWIW: TLRY (Tilray) experienced a short squeeze of epic proportions. As I write this, this morning, we are seeing rumblings of it starting again. Whatever hype that existed aside, the price action was fueled in very large part by the inability of market participants, including market makers (I work at one), to settle short without failing. During the worst of the hype, borrow rates were around -450%. The borrow rate has since collapsed and it starting to worsen again. Before you go and say “woah tilray is definitely overvalued”, remember that you are right, but likely for the wrong reasons.
  • BT
    Bryan T.
    26 September 2018 @ 20:52
    I"m watching Pharmacielo which went through a reverse takeover (RTO) earlier this year. This basically means the company will be going public sometime before year end. An RTO occurs when a shell company essentially issues shares to a privately held company, Pharmacielo in this case. And then Pharmacielo becomes a wholly owned entity of this shell company. And this is exactly what Pharmacielo did allowing them to go public without incurring most of the large investment banking fees and associated costs. Pharmacielo, which is headquartered in Canada, bought a shell company called AAJ Capital 1 Corp. on the Toronto Venture exchange. Pharmacielo has a distinct advantage in the cultivation market. Sourced from Columbia where natural conditions reduce the costs of growing to a fraction of the costs associated with northern indoor artificial grow operations they have a distribution channel in Canada that will provide a ready market. Canada will be the largest country with full legalization status. Colombia currently grows and processes the majority of cut flowers worldwide and the retooling to grow cannabis is well founded, government supported and in an advanced state...soon to go to market.
    • SD
      Sebastien D.
      28 September 2018 @ 11:57
      Nobody talks much about Pharmacielo yet but it looks like a big deal indeed. World class management and low cost massive production potential. Something not yet uncovered is going-on there and it will be interesting to watch!
    • SD
      Sebastien D.
      2 October 2018 @ 05:40
  • TW
    Thomas W.
    30 September 2018 @ 19:33
  • PG
    Philippe G.
    29 September 2018 @ 18:39
    Yes, please bring this guy back! Covered so much in ~25 mins. Amazing!
  • GO
    Glenn O.
    29 September 2018 @ 03:57
    Great interview. Todd See the future, and I for one agree with him. There will be peaks and Val lies, but it is a sector that has real blue sky. Be carful what you buy, but the future is very bright. Gkenn
  • SW
    Steven W.
    27 September 2018 @ 20:43
    AMA didn’t know difference between marijuana and cannabis! Give me a break.
    • BP
      Brian P. | Real Vision
      27 September 2018 @ 21:21
      One can be considered a pejorative term when used in reference to certain communities. The other is the preferred nomenclature for the industry. It's important to discuss.
  • CB
    C B.
    26 September 2018 @ 14:40
    Great interview. I would be curious to hear Todd's thoughts on the differences between the evolution of the cannabis wellness category vs other healthcare sectors where large pharma dominates. Though cannabinoids, terpenes and other natural molecules associated with cannabis may prove to have remarkable health benefits, they are all derived from a commodity that can be grown by anyone, nearly anywhere. I recently shopped for CBD oil online, and the sheer number of producers is overwhelming, all promising high quality, independent lab testing and superior potency. With so little to differentiate, one would think that competition will ultimately drive price towards marginal cost. This tempers my enthusiasm for the sector. (GW Pharma is a different story as they have identified a particular medical application for their product and put it through rigorous clinical trials.)
    • aD
      amol D.
      26 September 2018 @ 19:44
      This from my opinion is spot on!! I was beginning to think I was the only one who thought like this.
    • TH
      Todd H. | Contributor
      27 September 2018 @ 18:23
      great question; we believe brands will dominate the beverage / nutraceutical/ CPG segment of the space (+ lower cannabis costs are accretive to margins). We are more focused on the biopharma side for many of the reasons you touched on but there will be winners (for sure) and consolidation on the way from here to there. all IMO
  • CD
    Charles D.
    27 September 2018 @ 16:35
    Todd Harrison is brilliant...great Wall St. honest broker..has been a visionary in this space...thank you RV.
  • PD
    Peter D.
    26 September 2018 @ 13:21
    Commentary suggests this was filmed on August 20, 2018. Should this not read September 20, 2018? Big moves in the interim if not...
    • RE
      Rafael E.
      26 September 2018 @ 19:04
      Agreed. The transcript "filmed on" date does not match the summary above. I'm assuming they should both read September.
    • M.
      Milton .. | Founder
      27 September 2018 @ 10:11
      Thanks Peter – we wrote the date down wrong! As you guessed, this video was filmed just last week, on August 20th. And no, before you ask, we weren’t smoking anything hah
  • V!
    Volatimothy !.
    26 September 2018 @ 13:12
    I like VBIO for their pro-drugs, children and adults can take them for pain without the psychedelic affects. Beyond specialty applications whats wrong with smoking a joint or eating brownies. Overpaying scientist and corporations to do a farmers job. You can preach wellness but its all about the money. The real key to wellness is prevention.
    • MM
      Michael M.
      26 September 2018 @ 15:25
      The main thing wrong with it is turns people into aggressively boring wastes of potential. But that's not enough to keep it illegal I suppose.
    • BT
      Bryan T.
      26 September 2018 @ 19:49
    • BT
      Bryan T.
      26 September 2018 @ 19:49
      Michael you sound like my 91 year old father...he's never used cannabis either. I've seen remarkable creativity and increased productivity from those who pair their use of particular strains with the intended objective. Formulations for pain, creative thinking, rest, physical work demands. Mix and match once a user knows the differences.
    • MK
      Michael K.
      27 September 2018 @ 03:08
      I’ve smoked plenty across grade, strains, time, quality, and environment. All I got was some wasted entertainment time, near hallucinations, and anxiety. I appreciate the medical pain relief and anti inflammatory elements and I look forward to strictly when they isolate these elements and bring professional medical authenticity to it. I revolved around a recreational crowd and managed to escape. That’s just my own personal experience. Others’ results clearly vary.
    • MS
      Michael S.
      27 September 2018 @ 03:45
      Michael M: If that's your criteria, then we should outlaw television first.
  • RM
    Russell M.
    27 September 2018 @ 01:14
    good interview by brian. an interesting guest helps, but he handled him well.
  • BP
    Brandon P.
    26 September 2018 @ 21:22
    Yahtzee, indeed. Well reasoned and well stated Todd! Need some more reasonable voices in this space that are in for the long haul.
  • CR
    Cindy R.
    26 September 2018 @ 20:47
    Great interview, very enlightening take on the industry.