23 September 2018 – It's Running

Mark Bernberg 23 Jun 2 min read

The week in Review

The Portfolio has been performing exceptionally in September. Currently, up 75% for the year, the month to date sees far more winners than losers.

For the month so far

The Winners

Liberty Health Sciences up 36%
Aurora up 40%
Cronos Group up 43%
And The Green Organic Dutchman up a whopping 57%

The Losers

Only stock down more than 10% is GrowGeneration

If you had simply invested on the 1st of September you would already be 17% up for the month. 17 out of the 26 stocks that make up The Green Fund's portfolio were up more than 10% for the month. That's over 65% of the portfolio.

Liberty Health Sciences

Liberty is best placed to take advantage of the booming Florida market
Estimated to be worth $1bn by 202, this is a great state for them (and will be even more once recreational is legalised – no date on this yet)
They have made a small purchase to gain access to Massachusetts and have one dispensary in Ohio (this is not really significant)
The issue with the stock is two-fold.
They are still really only in one state, hence a 1-trick pony
Their management team does not have enough significant depth to it (as opposed to other management teams like CannaRoyalty, iAnthus, Canopy etc)
However, valuation is very reasonable and we see big upside for them.

Aurora Cannabis

Poor performer year to date but the Coca-Cola deal could be very close!
Has not had the same hyper growth its peers have had since Canopy-Constellation II
They are moving to the Nasdaq or NYSE in October. Expect the price to pop, as is being seen on all other big-name players on the American Exchanges
There is still execution risk as Aurora Sky not yet fully operational
Deal with Coke could be phenomenal

Cronos Group

A great company to watch
Been feeling the love of being a Nasdaq listed stock
Volumes have been massive (over $1bn last week) and the stock price is really moving
Their new relationship with Ginko Bio is very smart
Pharmaceutically well placed
Very smart and competent management team
We are very bullish but feel the valuation is a little high right now

And, as for the coming week, we will be focussing on 3 stocks we think could pop next week.