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.
We’re buying
- MPX Bioceutical
- Liberty Health Sciences
- TerraTech
More on these next week.
Up 17% for the month, and they told you money doesn’t grow on trees.
