Every week, my team and I ask you to send us feedback, request marijuana stocks to cover and more on our YouTube channel.
You’ve sent a ton of great comments and questions! So this week, I dipped into the mailbag to answer several of them.
Marijuana Stock Mailbag: ACB Buyout; Neptune Wellness
Randall emailed us to ask:
Do you foresee Aurora Cannabis (ACB) as a possible target for a buyout from a company that’s much more stable and has the cash, such as Canopy Growth (CGC)?
Great question, Randall. I appreciate it. And I dove into your question in today’s video.
Chris asked about pick-and-shovel plays in the marijuana market. He specifically mentioned Neptune Wellness, which I may do a more thorough review of later:
I read a little into it, and it seems like [Neptune Wellness Solutions Inc. (NEPT) is] the kind of business where marijuana plants are taken to have the THC extracted, cleaned, etc. I’m not sure how many businesses out there do this, but I was wondering if you would be able to shed any light on it? Being it’s a cheap stock right now at roughly $2.50, and depending on how big the marijuana industry grows, there might be some opportunity there. Let me know what you think.
Thank you for your question, Chris. I wanted to clarify what makes a stock “cheap” — tune into the video for the specifics.
Over-the-Counter Cannabis Stocks & “Black Market” Status
Jayme asked me about some smaller cannabis companies:
I hold several cannabis stocks that are doing great, but what I am wondering about is your comments on Emerald Health Therapeutics (EMHTF), Green Growth Brands Inc. (GGBXF) and The Valens Company Inc. (VLNCF). These are down now, so was it hype that had them higher at the beginning of the year?
That’s a good question, Jayme, and I appreciate you asking. I look into what might have caused the volatility in the stocks you mentioned.
Finally, Lynn answered my question about the reason for investing in cannabis stocks.
It is my hope in supporting the growth of this industry that healthy companies will continue to develop new products for medical use that change people’s lives as this product has done for me. I also would like to see the black market for recreational products recede and legitimate, high-quality dispensaries take their place (the sooner, the better). To achieve this, the industry has to become more competitive, and the products must be of consistently high quality and performance.
I think you’ve hit several nails on the head here, Lynn. Thank you.
I discuss the cannabis black market — and how long it might take for the industry to be seen as legitimate.
Remember, you can catch the full video right here.
And that’s all for this week.
We love all the feedback we’re getting on our YouTube channel and through email!
Of course, if there’s a stock you’d like me to run through Adam O’Dell’s Green Zone Ratings system, be sure to send an email to feedback@moneyandmarkets.com — or leave a comment on the video!
And to make sure you see my Marijuana Market Updates as soon as I post them, plus our other videos — The Bull & the Bear podcast and The Week Ahead — subscribe to our Money & Markets YouTube channel!
Until next time…
Safe trading,
Matt Clark
Research Analyst, Money & Markets