During their recent episode, Taylor, Carlisle, and Asif Suria discussed U.S Cannabis Stocks Actually Trade In Canada. Here’s an excerpt from the episode:
Aaron: Anyway, so, that’s part of what gets me very bullish. But then there’s this weird thing, Tobias, that you need to understand is, because Canada federally legalized cannabis, you have Canadian cannabis companies that are allowed to list on US exchanges, New York Stock Exchange and NASDAQ, and pretend like they’re the way to play the US. But all the US companies actually trade in Canada or over [Tobias laughs] the counter on pay sheets. And they’re the real companies.
Tobias: Okay. That’s interesting.
Aaron: And so, you had this massive boon, you may have heard of names like Tilray and Canopy Growth that went to the moon. They incinerated billions of dollars. They had no idea what they were doing. But this is the other lens that I view cannabis, is that if you think about it as a society, we’ve never tried to grow or scale cannabis until about eight or nine years ago, or do it professionally at a low cost.
You have all this experimentation, and there’s all these myths around cannabis, cannabis cultivation, that’s the weed and that it’s easy to grow. A lot of it’s just wrong. A lot of it’s because we don’t have experience with it. There aren’t a lot of smart people like you, guys, who are doing deep dive research and trying to understand the basics of the business and the unit level economics. To me, there’s a lot of opportunity. I love it.
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One Comment on “U.S Cannabis Stocks Actually Trade In Canada”
I listened to this episode and with respect to cannabis companies, I do agree that “They incinerated billions of dollars.” but not much else. I live in Canada and I am primarily a value investor but sometimes I buy blind pools. These are publicly traded shell companies on the Toronto Venture Exchange. I did buy LW Capital at 10 cents. The stock was consolidated 4 for 1, making my cost 40 cents and it changed its name to Canopy Growth. I sold it for around $5. I never believed any of the nonsense peddled with respect to cannabis companies and still don’t.