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the exact opposite is happening – then we stay away. This is not a fad, this is a trend... Porter Stansberry: Matt, do you think that people who buy Tilray at $10 billion are going to have a successful investment? MATT McCALL: In the next year? No. But I do think there’s a lot of great opportunities out there, smaller companies that are overlooked. So, no, I wouldn’t buy Tilray here today. I would not do it. But I think there are opportunities in marijuana. Porter Stansberry: Are there more conservative, more established businesses that you would put into that marijuana sphere? Big existing businesses that could see a big increase in sales? MATT McCALL: There are bigger names that I like... let’s call them ancillary plays that aren’t pure plays where they’re growing the plant or selling the plant. Constellation Brands is a great example. You know, it owns 38% of Canopy Growth, which is the largest publicly traded marijuana company in the world. So, that’s a great way to play. Constellation owns 38% – I’d say you’re going to get a lot of exposure to it, plus, you’ll have the brands like Corona, Modelo, and Mondavi wines. That’s a great play if you want to have exposure to marijuana with a less aggressive play. You can look at companies such as Scotts Miracle-Gro, which helps with the growing of marijuana as more marijuana is grown around the world. You could look at some pharmaceuticals that will be using the CBD aspect of the plant – the non-psychedelic
But marijuana is going to change the way that we do “entertainment” when we go out... This is a real industry.
aspect of the plant – that helps with seizures, anxiety, and different issues like that. You can look at Coca-Cola. There’s rumors that it’s going to come out and buy part of Aurora and it’s going to make CBD drinks, and that type of deal is going to be done in the next couple days, in my opinion. So, yeah, there are a lot of big-name plays where you can buy into and have exposure – secondary exposure to this market without going directly to Tilray or Canopy or any of the direct players. Porter Stansberry: When you look down the path into the future, marijuana has become legal in a lot of places in the U.S. It’s legal in Canada, and it’s legal around the world. As marijuana gets integrated into society and eventually becomes legal in the banking system and a lot of the other things that are holding it back right now – do you think it’s likely that a company like Philip Morris or one of the big tobacco players ends up rolling up all these little guys and becoming a dominant, branded provider? MATT McCALL: Oh, absolutely. I mean, it’s going to be just like anything else. Look at the soft drinks, how that’s really rolled up. And any time a new soft drink hit the market, you had one of the big names come in and buy
American Consequences 75
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