equity research analyst at Canaccord Genuity in Toronto, doesn’t hear this same level of objection to the industry today, and for good reason.
companies “are kind of doing everything in every market,” he says—from growing to producing, up to creating edibles and even operating retail in some markets.
Big-name companies trading in the U.S.
Meanwhile, leading American companies like Curaleaf or Trulieve trade on Canadian junior exchanges, less easily accessed by the overall U.S.
Investors entering the cannabis market have to consider their risk thresholds.
The sector can be home to wild price swings where for weeks at a time stocks go in one direction, before pivoting and going the other way.
Cannabis is a sector where policy announcements about the future of legalization can cause stocks to move in the same direction, but investors can’t let that alone sway them.
For Bottomley, management teams and their philosophies are particularly important in the cannabis industry.
Prior to Covid-19, Bottomley went on a lot of site visits, meeting management teams. What benefits investors long term, he says, are companies that aren’t too aggressive with mergers and acquisitions, don’t overpay for assets and focus on core markets where they have competencies and market share.
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