Cannabis Investing Network CIN Podcast

Please note we recorded this episode early Tues morning and the cannabis markets has turned ugly by close Tues night.

Which is the important theme of this episode - as hype and speculation return in force to the cannabis industry investors need to be careful and be fearful when others are being greedy.

In this episode:

- What the hell is going on?

- Explaining wild price action over the last few days

- Rally of the "others" not the big 4 MSOs

- ACB as a proxy for the wildness of this market and unsustainability

- How to protect yourself while taking advantage of the "risk on" mindset

In this episode we are joined by special guest Nick Gastevich. You may have seen Nick posting online under the name CannaVestments where he regularly shares financial analysis and commentary about US Cannabis companies. 

Nick has deep insight into the large MSOs and through his family office invested in GTI and Cresco as private companies.  

In this episode we cover Curaleaf, Trulieve, GTI & Cresco's Q3 results and for each company we discuss:

1. Top Line metrics and Growth 

2. Gross Margin and adjusted EBITDA

3. Cash Flow & Capital Expenditures

4. Footprint analysis - which states are driving revenue and profitability?

5. Future growth - which states represent the most future upside?

6. Valuation - what multiple does the company trade at? Do we view it as cheap or expensive?



This is an action packed episode - many thanks to Nick for joining us and sharing his insights

 

Please note: we had a technical issue and one of our mics somehow had the "witness protection" filter put on. 

In this episode we discuss how cannabis investors should weigh the potential risks associated with COVID and the broader markets

- Vaccine Optimism is pushing markets higher - is too much optimism priced in?

- Vaccine is much welcome news and provides a light at the end of the tunnel 

- However many risks remain as we head into a prolonged "dark winter"

- Lack of fiscal stimulus, lack of US federal COVID response and why a delayed transition is particularly bad this year

- Risk feels mispriced - from bonds to commercial real estate this remains a real overhang

- So what? Cannabis is performing very well but is not immune to broader markets

- Lack of stimulus hurts consumers; market correction will hurt weed stocks

- How do we plan around this? What measures can we take?

- Portfolio and cash management over 2021

- Discussion of MediPharm Lab's BRUTAL Q3 and a longer term outlook

- Thinking about B2B for Village Farms and Cresco Labs

In this episode we digest the results of the US election and discuss why we are bullish on the future of US cannabis

In this episode we discuss:

- Why investors should be careful with this "sugar high" rally on Canadian LPs

- What a Biden win means for US Operators

- Why this is good for future M&A

- How cannabis will fare under a split senate or under a republican senate

- Why "more of the same" is actually a win for existing players

- Why the NASDAQ remains the holy grail and how that impacts the current players

- How The Golden Age of Investing is likely to be prolonged 

We finish off with a few listener questions from Alex, Zachary and Ben D

In this post-election special we discuss what the future holds for cannabis investors and how to manage uncertainty

This week we discuss the importance of continually evolving your thinking in the rapidly developing cannabis landscape.

- Why updating your mindset is so important

- How to filter noise from real trend changes

Topics that we discuss our updated thinking on:

- Flower vs Extracted products

- Brands in Flower (how and why Cookies has performed so well)

- Vertical Integration

- Importance and Long Term Viability of Dispensaries

- Extractors

- Rec vs Medical markets

Lastly we give some final thoughts before the upcoming US election next week