Understand cannibis stocks

By harrison17, December 25, 2017

How does one make an investment decision in the Cannabis Stocks?

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Travis Johnson, Stock Gumshoe
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There aren’t many of them that can be called “investment decisions” at this point — the vast majority are wild speculations with no attachment to financial fundamentals. There are some real and large companies in the space, mostly in Canada, but they are so richly valued that a lot of hope for the industry is already written in their prices. I’ve been too cautious on the sector in general, but the stocks I’ve been most attracted to have mostly been the giants — Aurora, Canopy Growth, etc. There are fortunes being made in this industry, but there’s also a huge… Read more Β»

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dkc1777
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dkc1777

Travis,
Have you looked into Cannabis Wheaton (CBWTF). They are set up like the very successful Silver Wheaton – – funding growers then taking part of their production as payment.

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Travis Johnson, Stock Gumshoe
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Yes. Last time I looked the valuation was absurd β€” priced as if they had funded those streaming agreements, instead of just agreeing to them. It also concerns me that I t’s a bet on dramatically higher marijuana prices β€” which Canadian regulators presumably don’t want, if the goal is to shut down the black market.

I like the business plan, but not the valuation.

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macmania44
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macmania44

stay with the Canadian companies for now.