by Travis Johnson, Stock Gumshoe | April 7, 2022 4:00 pm
This is premium content. To view this article (and to have full access to the rest of our articles), sign up. Already a member? Log in.
Source URL: https://www.stockgumshoe.com/2022/04/friday-file-shuffling-pot-financiers/
Copyright ©2024 Stock Gumshoe unless otherwise noted.
whats your take on LGV. A devise BUTTERFLY IQ is handheld and can take sonograps of whole body instantly
Haven’t looked into it. Is the product approved and being sold yet? Sometimes it’s worth waiting for sales growth to emerge and validate your belief that the market wants the product.
I like AFCG but wonder what will happen to it if Congress ever makes it ok for other financial institutions to finance cannabis. They may have trouble getting those high interest rates in 5 or 6 years when the current batch mature. I also understand that their loans are fixed rate, so higher inflation could hurt them as well. Still, 12% is pretty tempting for adding to my position.
More competition will eventually bring down the returns… when, I don’t know. These are risky tenants, to some degree, so the rates may not come down dramatically
As someone who has worked for banking 10+ years I can promise you that if it does get legalized it will take many years for the banking competition to kick in. They have so many hurdles both with internal and external compliance that many wont even touch it this decade. Also i hear from a govt level it takes awhile too. Decriminalization is one thing, financing is another speed wise.
Nice analysis, as usual! I have considered buying currently leased marijuana warehouse. The upside is that it’s a real asset, already leased and the market is poised to grow. (The House voted to legalize this week.) The down side is that the feds will insist on a bigger piece of the tax pie, eating into the potential for me to profit. Would love to hear your input amd the thoughts of others.
Travis, great writeup on PW, thank you for finding the gem last year (tho paying for it now in capital gain taxes). I have a high risk tolerance so only sold half of my shares thus far and don’t plan on selling the rest yet. For those still in it, the Michigan tenant issue has turned into a lawsuit this week with the tiny municipality. Not a lawyer but it sounds like they have a decent argument that I obviously hope gets resolved quickly.
On another note if you are looking for insanely cheap (but safe in my opinion) divided yields and P/Es look to the RV industry. Thor Industries $THO, LCI Industries $LCII, and Camping World $CWH.
I live on the border of Ohio/Indiana which is a huge camping area and every campground is booked solid for the spring/summer. Was really never that way before Covid (minus the big holidays) so I’m not buying that the industry is slowing, in fact I believe it may even grow. This seems like a steal to me and ill get 10+% div with CWH while waiting for the market to see it too.
Travis has discussed Camping World Holdings/CWH many times over the recent 12+ months – and purchased the shares at ~$41 about one year ago. As of his most recent update of the company, he still owns the shares.
Must have missed that. Thanks
Try PFIX to hedge for rates
Thanks, that one has certainly done very well with this latest
spike.
Great advice to hold onto those great companies. Thanks for another interesting weekend report,
I feel that way about NVIDIA…no dips worry me and I’ll just buy more.
Doesn’t make sense to me to pay out a large dividend when they need the cash demonstrated with self offering. I’ll pass.
Pretty much all REITs need to raise cash to grow, they’re structured to pay out any excess cash flow as dividends instead of using that cash to reinvest in their growth.
But yes, this is an unusually large shelf offering for such a small company. We’ll see how much of it they actually try to do.