Curaleaf Holdings Inc (CURA-CSE)

He does not do a lot of Cannabis investing. It is a leading US MSO. The industry is still very early days. Once we have more interstate commerce allowed amongst the names you will see them firm quite a bit. His favourite is Air Wellness.

Results reported yesterday were good. Elephant in the room is is what happens with US cannabis regulations. Impediment to greater profitability is they can't deal with mainstream banks, so cost of capital is higher. Plus, illegal federally, so pay astronomical tax rates. Regulations will eventually change. Best of breed.

Canadian-listed, international company. One of the leaders in NA and Europe. Lots of opportunity in the US, where the tide is toward full legalization.

A bifurcated industry, with those financially sound vs. the other ones. Pleased with how they're growing their business. Large addressable market in Europe. Not profitable, but revenue is growing quickly. Vertically integrated. 100+ dispensaries downstream. Likes geographic footprint. Going to be a long-term leader in what will be a huge industry.

His pick in cannabis (the complete opposite to Organigram). They're a Canadian company but they operate entirely in the U.S., and (after a recent $300 million purchase) five western European countries. In terms of cannabis legalization, Europe is roughly where the U.S. was three years ago. He alsolikes that they're vertically integrated with 23 cultivation sites, 24 processing ones, and 106 dispensaries with licenses to add 30 across 23 American states. He likes that they're leveraging their roots in medical MJ, branching into the bigger recreational market. They rise above other cannabis companies by offering good governance, sound strategy and executive ownership of shares. Checks all the boxes. (Analysts’ price target is $28.02)

Has pulled back recently. The whole marijuana sector who has had a huge move is taking a breather. Bought around $10. The pull-back is buyable. The geographic foot print, strategy and vertical integration is positive. They own growers, intermediate processors, and has good downstream footprint. The regulatory and social license backdrop is good with Biden and the democrats. Addressable market is huge.

Operates entirely in the US. Largest marijuana producer in the world by sales. Vertically integrated. Growing quickly organically and by acquisition. Regulatory tailwind. Democrats taking Senate increase likelihood of legislative reform. Great company, lots of growth runway. No dividend. (Analysts’ price target is $19.98)

It's the largest US MSO (multi-state operator) in several U.S. states. They've built up a small private company over two years, then went public. MSOs are capturing more attention and capital flows.

Operates entirely in US, with 10x the market. Canadian red tape has made it difficult for regulated companies to take market share from black market. Whereas US market is undersupplied. Vertical integration and geographic diversity are part of its strategy. Good management. No dividend. (Analysts’ price target is $17.47)

He finds it fascinating that cannabis is still illegal in the US, but is deemed essential during the pandemic. He thinks this will lead to relaxed regulations in the future. The company generates increasing revenue and positive cash flow -- only a handful of US cannabis companies do. He thinks it will be a dominant player in years to come in the space.

CURELF-N vs. CL-X. He really made a focus on the US for cannabis. He thinks the US MSOs have a tremendous amount of room to go. CURELF-N is one of the leaders. CL-X just did a deal in California, which is one of the biggest markets out there. He likes both of them. They are both leaders.