Here is the outlook that these industry insiders have expressed.
There needs to be more information, and reputable analyst coverage, on cannabis stocks. “The real question has got to be, ‘how do you find the companies that do provide a long-term business model?’ It’s just like the dot-com 1.0 bubble that peaked in March of 2000, there were hundreds – if not thousands – of companies that literally evaporated overnight but if you look at the fundamental companies that continue to survive or continue to operate in their business plans, the survivors are the behemoths today. You’ve got your Amazon, Ebay, Paypal, Google – the people who survived are arguably the best bets you could have made. My hope is that you get reputable analyst coverage because right now, quite frankly it’s not that great. My hope, as the industry matures, you can get some people who can take a real look at these business and understand which ones are winners or losers.” He says more U.S. cannabis companies will seek a listing in Canada now that Canada has fully legalized cannabis. “There are going to be a lot of companies that are going to try to make the case that they’re going to be a long-term player in this space. I think it’s impossible to ignore the economics of public listings but my main concern is that it’s going to make it difficult for investors to differentiate between companies that have a long-term value proposition and those that are simply trying to access the public markets due to market sentiment.” Fang believes the number of U.S. cannabis companies listing in Canada will outpace Canadian ones. “Unless there is a change in legislation that is absolutely going to be the case. The only thing that would change that is if we see a sort of correction in the markets.” Sublime Canna recently closed a $6.2 million round of series A funding and is one of the first institutionally funded extraction company in California.
The greatest growth will be seen in the companies capable of linking the traditional healthcare industry with the marijuana industry. Whenever peoples' health is at stake, profits soar. Let’s just hope that this won’t be the foremost incentive for the marijuana industry. We have on our hands an opiate crisis and an imploding healthcare system that’s bankrupting our citizens and our government. This is what drives the marijuana industry; profits are the low-hanging fruit.
Matthew Roman, MD
CEO, Marijuana Doctor
Serge Chistov is the financial partner of Honest Marijuana Company, which utilizes all-natural cultivation methods to produce only the finest organic and eco-conscious cannabis products. Their marijuana is also packaged in Earth-friendly recyclable tin cans with pure nitrogen to ensure only the highest level of integrity and quality. Serge advises ganja-preneurs on all of the assets needed to start a marijuana growery, investment strategies, pricing marijuana products for both wholesale and consumer sale, and more.
On marijuana in the stock market: "Analyze them as regular stocks and don't concentrate on the fact that they are marijuana stocks. Look at pot stocks like any other stock and look at business factors like cash flow. It is a speculative investment, most likely. Also, try to look at stocks for something more auxiliary in the industry. If you don't mind me comparing to people in the Gold Rush, this would be like looking at investing in suppliers of shovels. Everyone went to look for gold and not everyone found it, but shovels were sold."