Canopy Growth Corp. (WEED.TO)

Backed up the truck on this and it is just going straight up. What do I do now? The best advice he can give you is to sell half your position, ride the rest and have a stop loss at around $30.

The 1^st question you have to ask is, are they earning any money. The answer is NO. It is expected to lose $.04 in the coming 12 months. This is a speculation. He is not interested in this as an investment.

If investing in cannabis companies, there is a lot of speculation and you should be a little careful. Thinks you can make money, and he would focus on the biggest leaders. He owns a little of this. There are a lot of other things working in this market, and you don’t have to focus too much in one area.

(Market Call Minute). This is so overvalued for a business that doesn't exist yet. He wouldn't buy this, because the valuations are nosebleed. Also, he is not Shorting it.

A leader in its field, and Constellation Brands has just bought into it. That gives more credibility to the field. There are 2 ways to play this field. One is to buy the leader, and the other is to buy a smattering of the very junior ones, hoping to get huge gains. There is no question that marijuana is here to stay. Be very, very wary of investing in this sector.

Chart showed it broke out of resistance. As the first, that usually means it is going to run away from its previous action. Technically it is really positive, but there will be some resistance from November of last year where the stock got under $18. The biggest thing in these stories is the news and politics, which can really change things.

He is cautious on that space. This is the biggest one in the space. The store front locations are very tiny. There will be some very big players in the industry but all money raised in this industry goes into production. He cannot get a handle on the valuation. If you are not taken over in the next year you will be in big trouble.

Delisting of cannabis stocks if they are doing any deals with the US?He doesn’t know why that story has gone around. Looks at it as fake news. TSX has said they want to know about holdings in the US. This company is clearly recognized as one of the biggest.

He just doesn’t see the hype around marijuana stocks. Students have been growing this for generations, you can grow it in your backyard, etc. Opportunities are really in the supplies, such as a lighting and hydroponic companies, etc. The companies are probably going to be bought by tobacco companies, so he would suggest buying a tobacco company and collecting the dividends while you wait.

It checks all the boxes. They are geographically and growth type diversified. They are getting into other areas also. They have a strong management team. (Analysts’ target: $11.50).

He has a hard time making an investment for a business that doesn’t exist yet. If you are going to own anything, own the “go to” name, and Canopy is definitely the “go to” name in that sector.

An investment in this type of company is rather speculative. However, it has certainly settled down. When they came off from about $12 down to $6, there had been some recovery, and the stock has been picking up of late. He doesn’t like the political risks. Feels there is a lot going on behind the scenes that we don’t necessarily know about.

APH-T vs. WEED-T. It’s always good to be diversified, should hold both. They both seem to be moving away from the pack to the upside.

Doesn’t own any of the cannabis stocks. The problem is, valuation. Market cap on this company is significantly larger than any multiple of sales you can put on it. The sector is still very much news and sentiment driven.

When evaluating a company, he looks at the fundamentals like revenues, profit, ROE, etc. These companies don’t have that yet, so are trading on future expected sales. When buying companies like this at this point of time, you are speculating, not investing. If you want to buy a marijuana stock, this is probably the one to buy. They are the biggest player. A rhetorical question would be, what happens if the Conservatives win the next general election, and they turn around and make this illegal? He doesn’t like the risk.