Published on: November 11th, 2020 • Duration: 35 minutes
Many saw investing in U.S. cannabis stocks as one of the ultimate blue wave trades for the 2020 election. Now it looks like it could just be one of the ultimate trades of 2020 – regardless of election outcomes. Ballot initiatives favoring the legalization of recreational cannabis or legalization of cannabis use for medical purposes were a clear bipartisan winner in 2020, passing in 5 U.S. states including traditionally conservative states like South Dakota and Mississippi. If you combine that political tailwind with the incredible revenue growth being shown by multi-state operators (MSOs), the bargain prices you can pick up those stocks for relative to their counterparts in similar growth sectors, and the tasty technical set ups coming to fruition, it looks like all the dominos are starting to line up for Todd Harrison and CB1 Capital Management. In this interview with Tony Greer, founder of TG Macro, Harrison outlines his bullish case for the sector, lists his favorite names in the space, and discusses other tangential opportunities and diversification options like ETFs. Filmed on November 5, 2020. Key Learnings: U.S. cannabis multi-state operators (MSOs) are growing fast, trading cheap relative to that growth. Combine that with bullish technicals and clear political tailwinds, MSOs could be the ultimate way to get long equities without picking a side in the growth vs value debate. Todd Harrison lists a handful of his favorite individual names as well as an ETF he advises that contains many of these MSOs.
