The Big Story – Marijuana Billions

Featuring Alan Gertner

As Canada gears up for legal recreational marijuana in 2018, Real Vision
goes on a road trip across the nation to meet the entrepreneurs, activists and
investors in this burgeoning business worth an estimated $20 billion. Where are the best opportunities in cannabis and what parts of the market should investors avoid?

Published on
15 November, 2017
Topic
Food agriculture, Micro
Duration
40 minutes
Asset class
Equities
Rating
41

Comments

  • IM

    Istvan M.

    10 5 2018 19:07

    0       0

    Brilliant! Makes me proud to be Canadian and it also makes me anxious to move home ASAP so that I can be part of it over and above my lowly investor status currently!

  • KL

    Kathlyn L.

    25 1 2018 01:43

    2       1

    Take a drink every time someone says 'space'

  • PR

    Perry R.

    4 1 2018 06:54

    1       0

    Great video, resulted in some of the most fun and profitable time I had trading all last year, hope to see a continuation of this before legalization.

  • DK

    Dylan K.

    19 12 2017 17:16

    4       0

    Excellent video RV. I wanted to say a few things as a pharmacist. I spent 6 years studying medicine, pharmacology, pharmacokinetics, etc. I'll start by saying that I don't think the DEA/FDA will reschedule cannabis from a schedule one controlled substance anytime soon. Second, there is a reason for this. There simply isn't a lot of data to support the change. Regardless of popular opinion, the DEA/FDA has proven that they only care about evidence based research.

    Personally, I believe that cannabis has a place in the medical field. Epilepsy, Parkinson's, ADHD, and other psychoactive diseases have the potential to be treated with CBD (not THC) versus the traditional pharmacologic agents that are currently available that come with a variety of side effects. Liver toxicity being the most common. If anyone is interested, watch charlotte's web documentary on YouTube.

    If anything, this video has encouraged me to do more of my own evidence based research from reliable sources and to make my own opinion on the future of cannabis in the US.

    • AW

      Anak W.

      27 12 2017 22:38

      0       0

      <3 thanks for you thoughtful opinion.

  • AT

    Alex T.

    14 12 2017 16:51

    2       0

    First of all .. brilliant video RealVision. Bravo! This is truly differentiated content.
    Interesting to see so many negative comments, probably from people who never questioned why cannabis has been illegal all these years, have no firsthand experience, and simply bought into the stupid common perception that "stoners" are a weird fringe group of losers. Nothing could be further from the truth. A vast number of smart successful people enjoy cannabis recreationally, they just do it very discreetly. If Canada is the first domino to fall and other countries follow in legalising cannabis for adult recreational use, there will be no bigger investment opportunity in our lifetime. Leaving aside smoking, much of the market will be about precisely engineered and well-branded edibles. I've been at dinner parties where people in their 40s and 50s who would never smoke pot try an edible and they absolutely love it. Bruce is right when he says the 50-something well-off ladies are his target market.

  • @.

    @Steve ..

    23 11 2017 01:51

    2       1

    Negative comments killing the vibe. Many of us see the point that this is a legal market with incredible demand and fanatical devotion to ethicically earning 1000 ‘000’s

  • EK

    Emil K.

    22 11 2017 15:17

    5       0

    Johan B., fair point and I am disappointed you got three down votes. But we all receive plenty of the other side in the mass media and popular culture which preaches something between caution and danger. Fair enough. So it's nice of RV to give us the minority view. The majority view is most everywhere else.

  • JB

    Johan B.

    20 11 2017 23:48

    7       3

    This was a far too one-sided presentation. The majority of the countries in the world do still consider cannabis to be more dangerous than benefitial. There must be strong forces opposing a more frequent use of cannabis. Why were these views not represented in the film?

    • AW

      Anak W.

      27 12 2017 22:51

      0       0

      It's true about what you mention, but if the benefit is real, the growth of the industry would remain the same. if it's not true, the industry will diminished. However, the answer will be depended on future research which is considered unknown.
      the video only focus mostly on countries that have significant effect on the industry directly ( meaning your point is already considered by the guests to some extent).
      Therefore if you consider only that information to be relevant ( which I assume that Alan Gertner did), the video is well presented.
      So to answer your point, I do not think it is right to describe it as one sided presentation, because the other side is not relevant on this particular topic of industry growth.

  • KB

    Kenneth B.

    20 11 2017 12:25

    7       1

    "cannabis is the next internet" - oh please. save us from your overblown metaphors.

  • MS

    Matt S.

    20 11 2017 11:58

    3       9

    Think this guy got confused between crypto and cannabis - guess he was stoned when he made his career path choice.

    Canada is failing so hard under Treudeau and this is just another nail in the coffin.

    But... if I can make some money from taking advantage of all these degenerates... I'm down with that!

    :)

    • AT

      Alex T.

      14 12 2017 16:26

      0       0

      you're a complete imbecile. Degenerates? Many of the brightest and most successful people you know consume cannabis in some form, I guarantee it. You just don't know about it because it's illegal and people keep it under wraps.

  • JX

    Jack X.

    19 11 2017 01:00

    3       0

    Despite my skeptical valuations of LCBO and the Canadian government...let me get this straight: basically this couple and all the cannabis retail stores in Canada just apparently decided to open up illegal storefronts, with anticipation that it's probably going to get raided at some point because the government is going to want a piece of this cheque.

    Geopolitical risk.......or rather local political risk...it's a real thing alright.

  • ii

    ida i.

    18 11 2017 09:22

    1       2

    If it's legal in Canada, then why can't the couple legalize their 5 remaining stores? At a certain point she said I hope to become legal... it is because she had been arrested so can't apply for a license?

    also what I don't understand is are we sure that the government will allow these privately owned chains to flourish? In Canada wine beer and al alcohol is sold through the government owned Liquor Commission stores I believe, and in fact alcohol is very expensive in Canada compared to Europe for this reason. As we sure the same model won't be applied for sale of Cannabis? hope someone can answer this

    • MD

      Matt D.

      18 11 2017 22:38

      1       1

      Retail stores are not and will not be allowed to sell marijuana. Similar to alcohol sales, marijuana can only be sold at government-controlled outlets (e.g. LCBO in Ontario). Get a snippet here: https://www.thestar.com/news/queenspark/2017/09/08/lcbo-will-run-150-standalone-marijuana-stores-when-weed-is-legalized.html

  • MD

    Matt D.

    17 11 2017 17:23

    10       0

    Really enjoyed the video. I think there is huge potential here. Although, the timing of the video could have been better. Mid summer would have been nice but better late then never I guess. Hopefully future investment ideas can be introduced before a 100% move occurs. For both US and CAD marijuana stocks, fall is typically the seasonal strong period. Sure enough, the Canadian marijuana sector just surged over the past few weeks. I exited half of my positions the day before this video aired in hopes to get get more shares with the same capital. So far so good but the space is very hyped up so I am having FOMO about when to get back in. Think about bitcoin, lots of investors brushed it off because it was "in a bubble" and too expensive and yet it's continued to boggle everyone's minds and go higher. With legalization in less than a year, I don' think valuations matter so much at this time. Investors are buying in anticipation of future earnings. Between now and legalization, I think most Canadian marijuana stocks will be higher than here but this isn't exactly a great buying opportunity at these price levels considering the spike in prices we just had.

    • ii

      ida i.

      18 11 2017 08:18

      3       0

      totally agree, we needed this video a year ago

  • AG

    Alex G.

    17 11 2017 06:20

    1       0

    Good piece always learn a few things

  • SG

    Sheila G.

    17 11 2017 02:50

    10       15

    Another marketing stunt. Real Vision, please install more quality and rigorous educational material and allow people to make decisions for themselves. This is getting ridiculous and just another marketing media website

    • Kv

      Kristian v.

      17 11 2017 09:13

      12       1

      I'm not quite sure the Canadian stoner Real Vision subscriber market is large enough to justify this video as a successful marketing effort by Alan.

  • GF

    George F.

    16 11 2017 20:56

    2       1

    My curiosities:
    1) Why are they growing it indoors? Isn't that needlessly expensive?
    2) How do they compete with people growing their own Cannabis? Unlike fermented and processed Tobacco and Alchohol Cannabis is like a spice, you grow it, dry it, smoke it. Current laws usually restrict the number of plants and the number that can be flowering.
    3) He claims his target market is wine drinkers. Short Wine and Alchohol?
    4) He seems to be profiting from regulatory chaos not Cannabis. My guess is the regulatory chaos will give way as governments try to maximize taxes.

    • ii

      ida i.

      17 11 2017 16:22

      0       0

      for the first question I don't think the climate allows you to grow anything outside from November until March

    • MD

      Matt D.

      17 11 2017 16:28

      2       0

      1) Winter gets cold up here in Canada, cannabis plants can't survive those temperatures. A greenhouse would be a possibility I guess but for the sake of quality control, I imagine inside a warehouse is much better. Additionally, there's plenty of processing after it's grown for its various products that needs to be completed in a sterile space.
      2) From what I understand it will only be legal to grow 4 plants no more than 1m (3 ft) in height. The yield of home grown plants is generally a lot less than professionally cultivated plants. No experience with it but I'm guessing there are harvest periods that likely wont align with an individuals needs. Most people prefer convenience for the minimal cost savings growing your own plants offer. Plenty of people brew their own beer, wine and liquor. It's not that difficult, it's just inconvenient and not worth the cost savings for most.
      3) Unlikely. Alcohol is an excellent social lubricant. Marijuana has a very different effect. I don't think it would be a substitute for wine drinkers. Perhaps compliment it.
      4) No doubt they will end up increasing taxes. That didn't stop the birth of alcohol and tobacco markets from surging since their inception.

    • RW

      Robert W.

      18 11 2017 03:26

      0       0

      Growing indoors for quality control.

  • rr

    rlw r.

    16 11 2017 18:27

    7       3

    Weed and BitCoin... the two psychotic whiffs of smoke for the millennials being baptized into the investment world.

    Medical potential sans the psychosis portion, for sure we're all hopeful advances will be made.
    But how fast does the FDA move? Are we talking years or decades?
    Where's the medical community's perspective?
    Gertner's piece is promotional.

    • MD

      Matt D.

      17 11 2017 17:39

      1       4

      Perhaps. But those unwilling to adapt to change will be left in the dust.

    • SD

      Stephen D.

      20 11 2017 02:46

      2       0

      rlw r. raises a very valid point about the FDA, as a Federal body it is incrdibly difficult for them to approve marijuana medicines as US Federal law continues to view marijuana as an illegal substance even as more and more states completely legalise it. The prospect for marijuana based medicines is very good indeed from a pharmacological perspective, and it's been used as a medicine in many civilsations over millenia. But the short term prospects for drugs are very poor whilst so many legal obstacles remain.

  • BT

    Bryan T.

    16 11 2017 17:51

    12       1

    Interesting observation about the cultivation market. I think a big player in the cultivation space may be Pharmacielo out of Columbia with headquarters in Canada. They have a huge cost of production advantage. Indoor growers have the challenge of bringing a subtropical plant to market in other than subtropical climates. Columbia of course has free sunshine given proximity to the equator and is optimum for cannabis growth. Their per gram costs are a fraction of the indoor growers. They own the cut flower business and are tooling up to sell weed to the world. The government of Colombia has green-lighted the licensing so I'd be watching them.

  • LK

    Lyle K.

    16 11 2017 17:17

    9       2

    I think the cannabis space is overrated and to compare it to the alcohol beverage market does not sense. If this space does succeed its going to be run mostly by a few mega cap companies just like every other industry. There is going to be carnage here for the smaller companies if you got in early and you made a million bucks you better get ready for the gravy train to end.

  • FC

    FRED C.

    16 11 2017 14:14

    11       0

    great job........clear succinct discussion and basically touching all aspects of the industry.
    a 10 in terms of viewer friendly and utility...........

  • Nv

    Nick v.

    16 11 2017 11:23

    21       2

    I love the format - choose a topic / industry, then speak to various industry experts for an all-round insider view. Excellent interviewer

  • PU

    Peter U.

    16 11 2017 11:03

    1       0

    Well done

  • KR

    Kieran R.

    16 11 2017 09:10

    3       1

    Great piece, Alan presents really well. Clearly opportunity and growth to come here but at current valuations has growth been priced in already? Appears best opportunities in private unlisted space. Hard for retail to participate in this just yet I think

  • SD

    Stephen D.

    16 11 2017 06:01

    25       2

    A really good introduction and Alan Gertner clearly communicates his enthusiam and the scale of the opportunity. And kudos for Canada for liberalising so comprehensively, clearly it's giving Canadian entrepreneurs a huge 'head' start. A little more scepticism would have made for a more balanced piece. The Canopy operation looks amazing, but the stock is on 80X revenues! And only in the last five minutes did we dwell on some serious obtacles facing medical marijuana pasing tests in an environment where medical testing will be difficult. But otherwise a great piece, bold and punchy and worthy or Real Vision's fearless style.

  • JL

    James L.

    16 11 2017 05:48

    6       1

    Cdn Weed stocks trading and 50+ trailing sales...this is going to end well...

    :-|

    TSX-V now selling unsuspecting retail weed stocks instead of the usual junior mining company with 'great prospects'

    • MD

      Matt D.

      17 11 2017 16:33

      0       0

      Investors are pricing in future sales. Valuations of these companies will be ahead of itself until after legalization occurs and the real sales are confirmed.

  • B

    Bob .

    16 11 2017 05:16

    9       1

    Exceptional and timely interview. This is an area worthy of a follow-up in a few months. Thanks.

  • IZ

    Ileana Z.

    16 11 2017 03:49

    6       0

    Excellent overview of a very exciting space. Everytime I pass a coffee shop or a bar I remember there's alot of money to be made in vices.