Since my last post Canopy Growth (WEED) decided to get aggressive in their global expansion and bough options last week to purchase Acreage Holdings, Inc. (ACRGF) which is one of the major players in the US. This move gave rise to speculation that US may be 'close' to legalizing cannabis on a Federal level, 'close' could be 90 months away as is the validity of the options. The stock reacted positively for the news by gaining close to 10% at opening.
Continuing with cannabis stocks in my portfolio one of them is a company next door in Denmark called Stenocare (STENO) who are also into distribution and growing of medical cannabis and has license as part of a experimental scheme in Denmark that started in the beginning of 2018. For sourcing aswell as for Know-How they have a tie-up with CannTrust (TRST) which is one of the leading manufactures for medical cannabis in Canada.
It IPO'ed at the end of October 2018 and since then has been on a good run and gave a return of almost 200% . Its a bet on legalization of Marijuana in the Nordic aswell as European market. Germany legalized medical marijuana in 2017 and is expected to have $1.6B in sales by 2022 and some estimates show Europe to be a $10 Billion market by end of the decade if its legalized.
The other bet is on the Infrastructure provider named Innovative Industrial Properties, Inc. (IIPR). They are the leading provider of real estate capital for the medical-use cannabis industry. It had a very impressive growth rate so far and has a forward PE of 26 .Currently they have 100% of their properties on long term leases that are 10 to 20 years long with an annual rent increases between 3 to 4.5% , which gives a very stable cash flow outlook. Year-over-Year growth has been good so far with 111 % Revenue, 720% Net Income and 344% AFFO Growth for Q4, 2018 which was driven by acquisitions. Hope they continue.
I have invested three times so far and plan to invest more if there is a pullback. They wasn't affected much during the December meltdown. One of the plus point is that it has a dividend yield of 2.2 % that is given out quarterly.
As I said the valuations for Marijuana Stocks are frothy and I have included them to spice up my portfolio and they together don't exceed more than 2% of my portfolio. I am not going to get into ethical aspect of cannabis as there are valid points of either side of the spectrum.
Canopy Growth (WEED)
Stenocare (STENO)
CannTrust (TRST)
Innovative Industrial Properties, Inc. (IIPR)
I have now enabled anonymous commenting option on the blog to see if there are going to be any feedback.
Continuing with cannabis stocks in my portfolio one of them is a company next door in Denmark called Stenocare (STENO) who are also into distribution and growing of medical cannabis and has license as part of a experimental scheme in Denmark that started in the beginning of 2018. For sourcing aswell as for Know-How they have a tie-up with CannTrust (TRST) which is one of the leading manufactures for medical cannabis in Canada.
It IPO'ed at the end of October 2018 and since then has been on a good run and gave a return of almost 200% . Its a bet on legalization of Marijuana in the Nordic aswell as European market. Germany legalized medical marijuana in 2017 and is expected to have $1.6B in sales by 2022 and some estimates show Europe to be a $10 Billion market by end of the decade if its legalized.
The other bet is on the Infrastructure provider named Innovative Industrial Properties, Inc. (IIPR). They are the leading provider of real estate capital for the medical-use cannabis industry. It had a very impressive growth rate so far and has a forward PE of 26 .Currently they have 100% of their properties on long term leases that are 10 to 20 years long with an annual rent increases between 3 to 4.5% , which gives a very stable cash flow outlook. Year-over-Year growth has been good so far with 111 % Revenue, 720% Net Income and 344% AFFO Growth for Q4, 2018 which was driven by acquisitions. Hope they continue.
I have invested three times so far and plan to invest more if there is a pullback. They wasn't affected much during the December meltdown. One of the plus point is that it has a dividend yield of 2.2 % that is given out quarterly.
As I said the valuations for Marijuana Stocks are frothy and I have included them to spice up my portfolio and they together don't exceed more than 2% of my portfolio. I am not going to get into ethical aspect of cannabis as there are valid points of either side of the spectrum.
Canopy Growth (WEED)
Stenocare (STENO)
CannTrust (TRST)
Innovative Industrial Properties, Inc. (IIPR)
I have now enabled anonymous commenting option on the blog to see if there are going to be any feedback.
No comments:
Post a Comment