NLCP - Cannabis Investing In The Age Of Legalization With Julian Lin Tim Seymour And Pablo Zuanic
2024-07-18 08:00:00 ET
Summary
- How to best invest in the cannabis sector with Pablo Zuanic, Tim Seymour and Julian Lin.
- Compelling metrics for evaluating cannabis stocks include EV/EBITDA, EV/sales, and total addressable market.
- Rescheduling, Trump's stance, and the impact of hemp-derived THC products.
Listen here or on the go via Apple Podcasts or Spotify
On June 18, Pablo Zuanic, Zuanic & Associates Managing Partner, Tim Seymour, Co-Host of CNBC’s Fast Money and portfolio manager of cannabis ETF ( CNBS ), and Best of Breed Growth Stocks' Julian Lin joined our Seeking Alpha community at our Investing Summit to discuss how to best invest in the sector (0:20). Best metrics to use when evaluating cannabis stocks (4:40). At this point in time, what is the best way to get into the sector? (19:00) Rescheduling, the Trump factor, investing in an election year (26:40).
Transcript
Julian Lin: I think the interesting thing about the sector is there's definitely something for every kind of investor. I think if you're looking for a more momentum, short-term trade, I think the operators makes a lot of sense, even the Canadian operators, just based on how they traded on historical volatility.
But of course, I wouldn't say that only short-term investors could invest in them, but even for more long-term investors who aren't willing to overlook some of the nuances with cost of capital, with the operators, the cannabis landlords, the cannabis REITs are something that I have favored for quite some time, just given that they have much less than traditional, that these real estate investment trusts, and they trade out really compelling valuations, even now after the rally at 7% to 9% yields.
Rena Sherbill: Tim?
Tim Seymour: Hi. First of all, great to be here at Seeking Alpha's annual event, because I would say for cannabis, Seeking Alpha has been a very important voice. In my career, I've been an institutional investor. I've run hedge funds. I now manage an ETF, Amplify my ETF partner. We've got about $400 million under management in terms of cannabis assets.
But the cannabis industry and the cannabis investment and the cannabis trade has been a retail trade. And to the extent that there are major obstacles and barriers to investing and entry, that's part of the reason. Part of it is that I think, in terms of risk and the ability to take on risk, and we're going to talk about some of the unknowns of investing in cannabis, and some of the things that make it really hard....
Cannabis Investing In The Age Of Legalization With Julian Lin, Tim Seymour And Pablo Zuanic