Eddy Elfenbein is out with a teaser pitch for his Growth Stock Advisor newsletter, and, like so many other pot-focused touts we’ve seen in years past, it’s essentially all about the fact that you need to get in today on a once-in-a-generation opportunity in the crazy-fast-growth of the legal marijuana industry.
I don’t think I’ve ever written about Elfenbein’s stuff before, but I’ve certainly seen it around from time to time — he was an early investment blogger and had a micro-cap newsletter 20 or so years ago, and he’s a fun follow on Twitter (it’s hard to be sure of the machinations of the industry, but it looks like he took over Growth Stock Advisor from Tony Daltorio, who now runs Growth Stock Confidential for the same publisher).
And, of course, as the hook to get you to subscribe he dangles out one particular stock that he thinks is the big winner…
“The $6 Under-the-Radar Stock Staking Its Claim on a… $160 BILLION PRIZE!
“NYSE Listed (not a shady penny stock)
“Sales Up 133.7% in the Past Year
“Patents in The U.S., Canada, and Australia”
And he positions it as the “Merck of Marijuana,” giving some extra air of legitimacy — helpful in an industry that has seen more than its share of charlatans, and which (probably rightly) still frightens lots of “mom and pop” investors.
What’s the story of this “Merck of Marijuana?” Here’s a bit from the ad:
“It all started back in 2013 with… that’s right you guessed it, a team of pharmacists.
“From day one, this company has used advanced methods to create some of the highest quality cannabis-derived products in the world.
“Staying true to the Hippocratic Oath of ‘Do No Harm’ they are laser-focused on the well-being of its patients.
“They even have a Chief Medical Officer on the Executive team, leading research programs, medical education initiatives and product innovation.
“It’s Chairman is a Pharmacist with over 40 years of healthcare experience under his belt.”
OK, so right away that sounds better than the crazy startups that got in trouble for hosting huge parties with Snoop Dogg and scanily-clad marijuana “nurses” … but that’s not saying much. What else do we learn about this “secret” stock?
Well, it’s got a market cap somewhere in the sub-$1 billion range… which we learn when he shows a little bar graph, comparing this company’s sub-$1 billion valuation to the larger Tilray, Aurora Cannabis and other leaders…
“If Wall Street knew what I know… the jig would be up…
“And it’s share price would be 3X, 5X, 10X or more its current level….
“To a valuation similar to Tilray or Canopy Growth.”
And he compares this pot boom to the internet boom of