Now Is The Time To Invest In Cannabis (Podcast)

Summary

• How do you decide which stocks to pick in the cannabis market? How do you navigate the sector downturn?
• Oren Benoff, who manages a family fund focused on cannabis stocks, joins the show and gives his frank assessment on which MSOs stand out, what is lacking in Canada and the advantage of companies catering to women and seniors.
• We also discuss the burgeoning market which will eventually take over $341 billion global black market and knowing when to sell a stock.

Listen on the go! Subscribe to The Cannabis Investing Podcast on Apple Podcasts, Google Podcasts, Spotify, and Stitcher.

By Rena Sherbill

Today, I am happy to be joined by Oren Benoff, a graduate of Rutgers University Honors program with a dual major in English and history who has since pivoted into studying global cannabis ecosystems; stock fundamentals & technicals and cannabis news. He currently writes about the cannabis industry and invests in cannabis stocks for a family fund. He also caretakes for an elderly medical cannabis patient with dementia.

It was great to get his independent thoughts on the plant itself, the state of the sector and the fundamentals of picking stocks - which ones he likes and ones he avoids as well as what he's learned since deciding to invest in the cannabis world and why, like so many of our guests that have come on the show, he's not a fan of the cannabis ETFs out there right now.

Topics include:

• 7:45 - Oren was familiar with cannabinoid ecosystem for 25 years. Past 3 years managing cannabis family portfolio of investments and background in history and literature has given him ability to unpack the nut that is cannabis. Also volunteers with helping people with PTSD and dementia heal through medical cannabis.
• 9:38 - Why Oren got into the investing part of things - the job he wanted involved too much red tape and started studying the ecosystem develop. Investing came from a place of wanting to help and then becoming an inspired hobby and money maker. Also teaching people how to study the market. Currently a pre-conscious cannabis market; conscious part will come when US legalizes federally.
• 14:30 - Everyone's talking about branding. You have Origin House (OTCQX:ORHOF) and Slang (OTCQB:SLGWF) and some Canadian companies but they're so young there's no real brands yet in the market. Cannabis 2.0 is just hype - no groundbreaking products. Aurora (ACB) was a red flag from the beginning, but Oren bought it in October 2018 and sold it in March and it went up nearly 100% - the psychological aspect of the markets.
• 17:10 - Oren loves what Canada's doing despite the shakeup. In 3-5 months it will improve after more of a shakeup in the cannapocalypse; there will be companies that have to strengthen their thesis. 48North (OTCPK:NCNNF) stock isn't going up the way it should but it's well run, run by women, who will be 50% of the market by 2022. Women are buying much more than men proportionally and into non-smokeable product. Seniors will also be a large part of the market - especially in Europe when it goes medically legal. Those dealing with health and wellness have an advantage.
• 21:40 - What about Aphria's (APHA) approach - their international approach? Oren likes them a lot especially because of CEO's background at Hain and Celestial Seasonings - they know what they're doing. Doing good work in Germany. Also understand market trends.
• 24:20 - MSOs have an advantage financially over Canadian companies. Curaleaf (OTCPK:CURLF) has 3 years of cash, Cresco (OTCQX:CRLBF) has 2 years, Green Thumb (OTCQX:GTBIF) has 1 year, Trulieve (OTCQX:TCNNF) also has over a year. But they have a danger - becoming ossified dinosaurs. Need to see more of a synthesis. Oren likes Trulieve because their thesis makes sense - catering to women and seniors and focused on wellness. Having a thesis is essential.
• 29:10 - The Israeli market - Cronos (CRON) has a lab in Israel; they say Cronos has 7 years of cash - a lot of time to get their products right. But what's really exciting is Isracann Biosciences (OTCPK:ISCNF) - the first pure play company to enter Israeli landscape.
• 31:45 - Any part of the world more successful than others? Colombia looked exciting, but it's going so slowly; same with Israel; same with Germany. 68,000 patients in Germany not enough to support a global market - it's not an overnight thing. At least a 10 year journey. Excited about Africa. Halo Labs (OTCPK:AGEEF) doing business there. But have to be patient.
• 34:00 - CBD market exciting and confusing; went up after Farm Bill passing, but FDA confused things. Slump in the market, though people are buying the products. Until it becomes regulated like a vitamin - which it probably will within 6 months, there will be less issues with the FDA as it's outside their area. When that happens companies like Charlotte's Web (OTCQX:CWBHF) will likely skyrocket.
• 39:40 - Not a fan of ETFs - wants to build his own thesis and portfolio. IIPR and GWPH are the two stocks he'd mention to investors scared to get into the sector. There are losses but core thesis is strong - important to know when to get out of the stocks though.
• 43:45 - Stocks don't go up automatically on growth or sales, which can be frustrating, but don't be fooled that every trade is a million dollar profit. Right now it's an exciting time to watch and play the markets. Parting portfolio tips - 6 breakdown topics: cultivation, extraction, CPG, ancillary, retail and real estate.

Comments

[fidel george]

Buy with your calculator, and sell if you’re wrong. These are great earnings trades at the least. $APHA. $ACB the preferred due to any news causing a HUGE move including a Peltz CEO 40% day, if the CPG director was named it would have jumped HUGE. Next two months will be good.

[muluhakx2]

I'm leaning hard into Charlotte's Web and despite the drop, I'm waiting a bit longer. There are others to consider but my thinking is their leading credibility in this sector, their mainstream strain/proven success stories in epileptic children, and their presence in CVS and small everyday grocery chains. With an approval from FDA and/or stores like Walgreens jump on board... watch out... the upside in this one outweighs the downside. I also like that they secured enough cash coincidentally in December, before this Coronavirus crap. Meaning they are well positioned compared to many of their peers to weather this storm!

[born_to_run]

An investment to consider is in International Cannabrands Inc which is in now in the final negotiation stages with BioNeva Innovations of Carson City, LLC and other investments to come soon after this deal. Check out the web site and also their new BaselineCBD product line.
https://www.baselinecbd.co/
www.intlcannabrands.com/...

[crzulu prime]

It’s time the Canadian government gets involved in the eradication of illicit black market by giving legit companies a moratorium on their taxes, it sure as hell save money on law enforcement. Price cut profit for all no more over supply. Win win.

Aurora Cannabis Inc. Exposure to all marketable cannabis worldwide, organic green houses, quality, divers’ product line, and responsible pricing.

Aphria Inc. Exposure to all marketable cannabis worldwide, organic green houses, quality, divers’ product line, and responsible best pricing.

[crzulu prime]

Trulieve Cannabis Corporation

Investor Hellman Jordan Management Co Inc /ma/ 150,000 Shares
Investor Albert D Mason Inc 32,635 Shares
Investor Rothschild Investment Corp /il 21,150 Shares
Investor Gofen & Glossberg Llc /il/ 12,100 Shares
None organic high price quality is questionable.

[ValhallaRising]

See the pre-release of $VRNDF, Delta 9, Canadian $32M micro cap. 4Q sales of $10M-$10.5M
about 50% q/q. Produced 1.3M grams with cost of $0.91-$1.04. Back of the envelope looks like a profitable quarter. Looks like are doing something right

[GHFISHER]

Disappointed that Khiron (KHRNF) hasn't caught on in South America and Mexico seems determined to limit outside companies.

[kenpa69]

KHRNF just entered Peru, Brazil and has a strong hold in Columbia. Mexico still to legalize fully and Khiron will be the leader there, thx to its having Ex Mex Pres Fox on its board. All in due time....

[GHFISHER]

@kenpa69 Agree except the Mexican government seems hell-bent in limiting vertical integration. I also thought Mr Fox would be able to con-vince the Senate but at time it doesn't seem like it will happen any time soon if ever
Don't get me wrong. I will hold KHRNF because it also seems to be able to make some nice in-roads into EU. As you suggest, "Have patience, Grasshopper."