A CONVERSATIONWITH MATT McCALL
That’s going to be a huge boom you can trade around. You can really play that by starting to buy in advance. Once the numbers start
Now jumping to your current question about separating the good companies from the bad... When I analyze these stocks, a lot of them get cut right away. First, I look at management and try to see where the people come from. Was this company a biotech two years ago that changed its name and said it was a cannabis company overnight? The second thing I do is look and see if they’re actually making money. Some of these companies have no money. They may have so many shares outstanding that it’s basically just like this scheme of people trying to pump and dump with press releases. Q: Yeah, of course. Remember the marijuana vending machine company Medbox? Remember howmuch it was trading for a fewyears ago? It completely tanked and the CEOwas sued. McCALL: Yeah. I know, it’s ridiculous. I know these guys. I know the bad players personally. I’m not friendly with them, but I know them and I know what they do. They make millions of dollars knowingly preying on the poor American public. And they’re great at it. In short, you are going to end up analyzing these companies the same way you would analyze any company and any industry. You just to have a different mindset because news is very important in this industry. Around election time, you’re going to probably get a spike. Usually coming into a new year you’ll see a spike, like we saw in 2018 when California opened up. I expect you’ll see a spike around when Canada opens up in July 2018.
rolling out, these stocks will soar. Then there’s that longer-term play I
mentioned. That’s all about looking for the stocks that will stay around. And Canada is a great example. The government stepped in to allow Canadians to buy their medical marijuana online. They’re looking at July 2018 to be able to buy recreational marijuana online and have it delivered to your home. That’s another event you can trade around. It’s all regulated by the government, which is a great thing. Even though I hate governments, it’s a good thing for this industry. And we’ve seen that in the results of those stocks and the increased perception of the legitimacy of this business. When alcoholic-beverage company Constellation Brands (STZ) came in and invested $190 million in Canopy Growth (CGC), that sent a big message to the world. Canopy now has a $6 billion valuation. This is a serious, legitimate business we’re talking about. Constellation owns Corona. This is not just some fly-by-night company. This is a real company that’s getting into the marijuana business. And that just shows that big multinationals are starting to position themselves for the moment the U.S. becomes legal so they can jump right in.
The opportunity for Midwest farms to mass grow marijuana is a huge opportunity.
46 June 2018
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