You Shouldn't Be Investing In The Cannabis Sector Without This Spreadsheet
Written by: Brandon Colwell
Knowledge is Power
This cannot be truer when it comes to investing. The more you know about a company, the better decisions you’re able to make. This is one of the fundamental components that separates the successful investor from the one that chases when they should sell, and sells when they should be buying.
But before we elaborate on why knowledge is so important, especially in the cannabis sector, we need to first look at how we got to where we find ourselves today.
Click Here for Investor Presentation Spreadsheet
On April 04, 2014 the first ever Canadian listed cannabis company began trading on the TSX Venture Exchange. That company of course, was none other than Canopy Growth Corporation (then known as Tweed Inc.). It sent shockwaves through the stock market. On opening day it was the 3rd most traded stock in all of Canada. This was the very beginning of what we now know as “The Green Rush” in this country.
Over the course of the next three years, one cannabis company after another took its turn listing in the Canadian stock market. What started off as just a few larger companies had quickly risen to dozens of options for investors to choose from. The green rush was beginning to gain momentum.
There were several ups and downs in the sector over this time, but arguably none were more significant than the Constellations deal with Canopy Growth Corporation. This was the first sign of big alcohol making its entrance into the cannabis sector and suffices to say—investors noticed.
Although there have been several catalysts that shot share prices into what then seemed to be the stratosphere, the Constellations deal lit a fire under the sector like we had never seen before.
Over the course of November and December, record after record were being smashed in terms of volume and all time highs for these companies. Investors who were in the red from their buys earlier in the year were now seeing their portfolio ballooning. The green rush was now in full effect.
Those that had the foresight to get in back in 2014 made off with profits in the hundreds to thousands of percent. But even those who entered the market up until the summer of 2017 could have thrown a dart and easily doubled their money. It was making cannabis millionaires at the likes investors hadn’t seen since the dot-com era.
But like all balloons, you can only fill them up for so long before they eventually pop. January came along and a very different story emerged. A sell-off ensued, which led to panic. Panic led to fear, and fear led to an all-out collapse in the Canadian cannabis sector.
This collapse was strengthened by the overall North American stock market correcting. This gave the perfect opportunity for shorters to finally enter the market. During this time we also saw the US government shut down, NAFTA talks crumble, and the beginning of a tariff war between China and the US. We also saw a mini tech industry meltdown that saw USD $75.08B of market cap wiped out from just six companies, in one single day in late March. It was a perfect storm that brought everything down with it.
The Dust has Settled and it's Time for Legalization
Fast-forward to today, and we are just two days away from the deciding vote on bill C-45 which would see cannabis legalized in Canada for the first time in nearly 100 years.
It’s been just over four years since Canopy first went public and it’s now become a very different atmosphere that surrounds the Canadian cannabis market. What was once a unique and uncommon stock choice to fill one’s portfolio, has now turned into a frenzy so big that it even managed to completely crash Canada’s largest independent brokerage firm due to volumes never before seen.
But the difference for investors now, from those who invested in prior years, is the importance of picking the right companies that will be around for many years to come. The time of throwing darts is over. It has never been more crucial to do your due diligence and have the knowledge needed to make the right investment decisions.
That is the very reason that FTMIG spent dozens of hours compiling a list of nearly 100 publicly traded cannabis companies and aggregated them all into one easy to navigate spreadsheet. Here you will find their CAD & US stock symbols, what geographical region they operate from, and a one-click access to their website and investor presentations.
The Investor Presentations for Publicly Traded Cannabis Companies spreadsheet is a great resource to research the possible investments you can choose from. It was first made consisting of entirely Canadian listed companies, but we have begun adding American listed companies as the political environment is beginning to finally change on a federal level. The spreadsheet will be continually updated in order to keep you informed with as many cannabis companies as possible.
It’s the investor presentation that has a wealth of information for you to know about a specific company. A well-made and informative deck is a great sign that management has a vision and a plan. And although it does not always correlate with a successful company, it’s a must read document that all investors should read to stay on top of what’s going on with the investments they choose to hold.
Click Here for Investor Presentation Spreadsheet
FTMIG was founded on the belief that investing in a community makes all the difference. Having like-minded investors sharing information and know-how can help evolve a panic seller into an opportunity buyer. It can help you understand the environment around you so that the next time a sell-off ensues, you’re not the one selling solely off of fear. Doing your due diligence is such a key component of investing, and one we highly recommend.
How to Become an FTMIG Member
If you are interested in learning more about the FTMIG community please visit here. There’s a community of thousands of investors all sharing information on the companies that interest them. It’s a great place to start, continue and perfect your investing career.
