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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: I have made very good returns in 2018 on Canopy Growth and HMMJ and have since sold all positions. I am considering a base position totaling 3 to 5% for a long term hold. As clarity evolves over long term performance I can adjust my holdings. How would you rank the three names given or would it be most prudent to diversify across all three initially?
Read Answer Asked by Terry on February 22, 2019
Q: Hello Peter,
I would appreciate some explanation as to why investors may see the equity investment into Canopy (Constellation) and Cronos (Altria) as more positive than joint partnerships formed by Hexo (Molsons) and Tilray (Anheuser-Busch). I would think the partnerships show greater commitment by Hexo and Tilray management not to give up so much control of the companies. However, the equity investment could be seen as infusing cash and they are US companies (Constellation and Altria) with lots of exposure. Would you diversify your monies across all four or forget Hexo and Tilray as the market does not seem to like what they did or atleast not as much as Canopy and Cronos. Thanks very much.
Read Answer Asked by umedali on February 01, 2019
Q: I am watching as the weed stocks decrease in this downturn. Just wondering what you think would be a good entry point for Canopy Growth Corp? I only want the largest of CDN companies.....let me know if you like others as well. At the time of writing this the stock is down to just over $35.00. 52 week high is 76.68.....I realize that valuations are pretty skewed with weed stocks.......just looking for a guide here.
Read Answer Asked by Brad on December 28, 2018
Q: Have there been any estimates as to the current and projected sizes of the two main markets for marijuana i.e. health care vs recreational use? I realize that these stocks are characterized as health stocks which leads me to think most feel that is the area where growth will occur but do any facts currently back that up?

Appreciate your insight.

Paul F.
Read Answer Asked by Paul on December 20, 2018
Q: Good day gentlemen,
I am attempting to differentiate between the largest Canadian producers on a valuation basis...specifically EV/EBITDA. As 2018 and 2019 will be ramp up years for most of these companies, Can you provide this estimated figure for years 2019 and 2020 for these companies and any others you may have in this sector.
Read Answer Asked by Giuseppe on November 21, 2018
Q: Hi Guys, my above holdings got wacked lately and was wondering if there is anything going on, from the above list should I sell anything besides WEED, are the institutions selling these companies because they think there is more to the downside? These are long term holdings are all up except for COV and KXS which I just bought before the tumble, not one of my best moves.

Thanks
Chicken Little
Read Answer Asked by Anthony on November 16, 2018
Q: Hello, my question is regarding WEED, can you shed some light on Constellation brands investment and warrants it has that can potentially allow them to become over 50% owner and what affect that could have on the stock if they exercised them. Their most recent investment August 15th was at $48.60/share, when I see this stock drop below that price I feel as though I should buy it... would that large investment at that share price technically limit the downside of WEED? Do the warrants to purchase more shares limit the upside? Thanks for your guidance.
Read Answer Asked by Michael on November 01, 2018
Q: Good Morning 5i
With Oct. 17th. approaching do you see "profit taking" hitting SP hard, followed by rise with news? Or steady price levels awaiting expected news of deployment of $5B of Constellation investment in the firm? Do you expect more institutional and fund ownership with legalization occurring. I am long holder atleast until end of 2019. Thanks for any insight you can offer.
Read Answer Asked by Randy on October 15, 2018
Q: It is difficult to evaluate the cannabis industry at this early stage. I wonder if I can get your opinion on the Medical side of the industry. With a longer term outlook and possibly our Canadian companies supplying the world with high grade medical cannabis, can you talk a little about the Companies you like in order of perference?
Read Answer Asked by Randy on September 25, 2018
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