The Perfect Storm for Cannabis Stocks

Published on
November 11th, 2020
Duration
35 minutes

The Perfect Storm for Cannabis Stocks

Tony Greer Interviews ·
Featuring Todd Harrison

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.

Comments

Transcript

  • SG
    Steve G.
    18 November 2020 @ 00:09
    Wow, what a great interview. It must be an amazing feeling to make a call like Village Farms and have it go up 30 percent the next week. This is why i subscribe to Real Visions - gems like this. Thank you to TG and Mr. Todd Harrison for sharing your insight with us at such a pivotal time. Great fucking call.
  • CR
    Christopher R.
    13 November 2020 @ 03:42
    Maybe it's just me but the narrative of cannabis and bitcoin are similar? Coincidence? Great interview!
    • TK
      Tom K.
      13 November 2020 @ 22:26
      Agreed regarding the current investor base (private individuals and specialty funds but few large institutions) and the immense sector growth in both. But the big difference is the US cannabis companies will be gushing cash flow soon (or are doing so already) whereas bitcoin is a monetary asset without a cash flow. Both are great assets but different characteristics imo.
    • DS
      Dale S.
      16 November 2020 @ 21:12
      They both seem like 'generational' plays, and like Raoul says I never feel like I have enough Bitcoin. Still, want to diversify a bit here and be in businesses that will drive free cashflow for the next 10 years.
  • DS
    Dale S.
    16 November 2020 @ 21:11
    This was awesome, thank you TG and Todd. I went big on the Canadian Cannabis run, and acutely felt the pain of that 92% loss - especially giving up on GRWG right before a 500% run! Still, I believe in the space, and the burn that people still feel will probably give us some time to build positions.
  • Nv
    Nick v.
    13 November 2020 @ 12:54
    Fantastic. I learned a great deal. Thanks team
  • BM
    Brent M.
    13 November 2020 @ 01:30
    Great video!
  • MM
    Michael M.
    12 November 2020 @ 12:07
    Thanks for this. Todd is, consistently, the greatest source that I have found for investing in this industry. Cheers
  • CV
    Collin V.
    11 November 2020 @ 23:37
    Village farm is a turd compared to Aphria. Talk about have nots.
  • DC
    Daniel C.
    11 November 2020 @ 23:11
    Trump did legalise the use of Hemp for agriculture and CBD. As far as history goes, he was quite supportive relative to past presidencies. I got the impression he didn't care, that it was a split between the states/house/senate that was the issue. I think this is just a sector in its relative infancy that will take time. For every supporter, there are people opposed.
  • DC
    Daniel C.
    11 November 2020 @ 23:06
    Whoa, Tony's intro. Man. Enjoyed it.
  • WP
    Warren P.
    11 November 2020 @ 22:35
    Long MSOS
  • DT
    David T.
    11 November 2020 @ 22:22
    Not all big cannabis companies are worth a lot. Aurora made gigantic mistakes. https://mjbizdaily.com/aurora-cannabis-lists-some-uruguay-assets-for-sale-as-regional-ceo-departs/
  • pt
    popejumpingjohnpaul t.
    11 November 2020 @ 22:06
    "an efficacious agility across a number of indications" a fabulous sentence, imagine a trump culter trying to decipher that!
  • JW
    James W.
    11 November 2020 @ 22:02
    420 blaze it boi
  • JF
    John F.
    11 November 2020 @ 21:53
    One could say these stocks are going up with a blaze of glory. *Slaps knee*
  • LS
    L S.
    11 November 2020 @ 21:09
    Greer always a good host
  • AC
    Andrew C.
    11 November 2020 @ 20:05
    Lol, you guys had to make the cannabis video extra short at only 35 minutes. I see what you did there... ;)
  • EC
    Edward C.
    11 November 2020 @ 15:55
    Interesting comments on Cresco...I see their director Marc Lustig has agreed to join the board of directors for Pharmacielo. This is not a plug, but was wondering if colour/expert out there on South American market?
  • BK
    Binyam K.
    11 November 2020 @ 14:23
    Great discussion and insight. Thank you!
  • PB
    Pieter B.
    11 November 2020 @ 13:19
    Awesome! Thanks a lot!
  • JV
    Jerry V.
    11 November 2020 @ 11:12
    Tony, great interview with Todd - The world of VALUE has all but disappeared and given way to indexation - The cannibus trade appears to finally be in play for the masses. Pura Vida
  • FS
    Filo S.
    11 November 2020 @ 10:59
    Thank you Tony and Todd. I have been playing in this space for some time without many wins. I too believe the time to step on the pedal in the sector is now. Bitcoin, Silver, Gold, Gold Miners, Cannabis (my Agri commodity proxy - with better potential upside than corn, wheat and soybeans) and Cash are standout investment sectors. Bitcoin is becoming more uncorrelated to econ cycles and I believe that Cannabis has the same potential, once it gets the next leg of momentum. Like alcohol and cigarettes, they work in all cycles, but unlike those two Cannabis offers much better physical and mental health benefits.
  • JW
    J W.
    11 November 2020 @ 10:41
    If you were looking for direction in the space after the past 2 years where stocks we largely retracing and the industry, on the surface at least, seemed to spinning its wheels, this is the Great Cannabis Reset video. Cann 1.0, Cann 2.0, Cann 3.0 makes sense. Good tips for investment as well. Thanks.
  • IW
    Ian W.
    11 November 2020 @ 10:29
    Awesome interview. Thanks guys! I was actually just wondering the other day about the US/Canadian differences and didn’t realize there was an ETF for US MSOs. Very timely.
  • JV
    Jaco V.
    11 November 2020 @ 07:31
    Little Green pharma in Aus is the one to watch
  • JV
    Jaco V.
    11 November 2020 @ 07:28
    Checkout Little Green Pharma in Australia. Great medical cannabis play with global exclusive contracts to Eu and Canada