Looking to invest in publicly traded cannabis stocks? There’s good news and bad news.
Good: “I think the entire U.S. sector is undervalued,” iAnthus Capital Holdings CEO Hadley Ford told the 300-plus attendees at the inaugural NJ Cannabis Summit on Oct. 24. “If you look at the Canadian stock market three years ago, you had seven public companies in Canada which had a collective market cap of less than $1 billion. There was a company called Tweed worth $80 million and they bought a company called Bedrocan worth $40 million. The market loved the deal and traded it up to a $200 million valuation. The stock was about $2 Canadian. They renamed the company and called it Canopy and the stock is trading at over $60 today and has a market cap of over $30 billion.
“Interesting, the other guys all came up – not as much as Canopy – but $10 to $15 billion,” Ford continued, “and the U.S. is 10 times as big as Canada.”
Bad: It’s very hard to differentiate who the winners will be, Ford said.