The week was a short one with Labour Day Weekend. A strong week that saw our benchmark, The Horizons Marijuana Life Sciences ETF surpass the Billion Dollar mark. Crazy! Really cool news this week was Cronos Group’s announcement to work with Ginkgo Bioworks to develop cannabinoids from biosynthesis. In other words, there may be a way to get the medicinal CBD and THC, without the need to scale the cultivation facilities. This could be game-changing. Very, very smart move on Cronos’ part.
Up 4.92% for the week
The portfolio was up just under 5% for the week. 3 stocks were up over 15% and 2 stocks that declined more than 10%. I have the decline benchmark slightly lower, as stocks, in general, should be climbing during this period.
A few of the portfolio Stocks that were up more than 10% for the week (just over 30% of the portfolio was up more than 10%)
Another monster week for them. They closed their acquisition of Hiku (which I sent a breaking alert out on) and are really starting to ramp up for recreational legalisation come October 17th. This week Cowen increased their price target for Canopy to $74 per share. That’s huge. An amazing run they are on, but we are holders, not buyers, at these levels. Don’t be surprised however if Canopy continues to climb to the end of the year.
Aphria is gaining big momentum. One of the most unloved and underappreciated stocks of 2018, it is now firmly in bull mode. The stock has been the constant source of a “Diageo acquisition” rumour and this has increased the feeding frenzy. This week they expanded on their international strategy with a JV with Schroll Medical, a subsidiary of prominent European flower producer, Schroll Flowers. The partnership will pursue the cultivation and worldwide distribution of organic, EU GMP-certified medical cannabis. We believe this stock still has big upside to the end of the year.
Elixinol is fast becoming our next CV Sciences. If you are new to the community then what I mean is, this is a stock we are buying. As much as we can get our hands on. They just released mid-year results and revenue is 100% up. With the hemp market dam walls about to burst in the US, we believe there is only blue sky (or should it be green sky) in front of them.
The coming week
What we’re buying
As we progress yet another week closer to Canadian legalisation, I expect the market to continue to move upwards. There should still be significant gains in the big Canadian LP’s (like Aphria, Canopy, Aurora, and CannTrust). There are 3 stocks we are very bullish on and will be looking to add further to the portfolio.
- MPX Bioceuticals – multi-state US producer focussing on the extracts market
- Indiva – Canadian LP with solid branded products
- Elixinol – Global player in the booming Hemp Market – see above!
All in all, a week filled with news. The sector is in serious growth mode. Everyone is eyeing the US, and the “Game of Thrones” for Western World is well and truly on.