CA - How Retail Investors Should Evaluate Cannabis Stocks
2024-02-15 18:30:00 ET
Summary
- Bengal Capital's Jerry Derevyanny discusses his evolving thoughts on 280E and the process of rescheduling cannabis.
- What metrics should be used when evaluating cannabis stocks?
- Concerns about debt management and lack of transparency in the industry.
Listen here or on the go via Apple Podcasts or Spotify .
Bengal Capital's Jerry Derevyanny shares his evolving thoughts on 280E and the process of rescheduling cannabis (2:20) some uncomfortable truths about how investors should be evaluating cannabis stocks (8:30) When will companies become more transparent? (21:40) Who is handling debt well and who isn't (27:15). Examples of sustainable value creation in the industry (34:00).
Transcript
Rena Sherbill: Jerry Derevyanny, welcome back to the Cannabis Investing Podcast. Welcome back to Seeking Alpha. Always like talking to you, so appreciate you taking the time.
Jerry Derevyanny: Rena, thank you for having me here again.
RS : Yes. Glad to have you back on. A lot of discussion lately about cannabis stocks, about rallying cannabis stocks, whether there's real value there, when the value is going to come, lot of promises on the political side of things. That's not unusual for us.
So, how are you looking at the cannabis industry? We're here on Valentine's Day, February 14th. Any love to be shown to the cannabis industry? I did not have that planned, by the way.
JD : Yeah. Tough love. If anybody's listened to me before or read any of our stuff, it's definitely a little bit of tough love. First, I'll give a proviso real quick.
So, I'm Jerry Derevyanny. I'm a partner at Bengal Capital. We run the Bengal Catalyst Fund, which invests in the cannabis space. So, we can talk about positions that we have in the fund today. Any comments I make on this podcast should not be interpreted as discussing Verano Holdings ( VRNOF ) because there is a litigation between Goodness Growth ( GDNSF ), where my partner, Josh Rosen, is a CEO right now. And it is a position in our fund.
So, nothing I say relates to Verano. And also nothing I say relates to 4Front ( FFNTF ), because I'm an ex-employee there, and I don't want people getting – any time I speak about 4Front, I feel like people would get the wrong idea that I have a good view of current operations, even though I haven't been there for a couple of years. So, nothing I say relates to 4Front as well, although I think that team is great and wish them all the best....
How Retail Investors Should Evaluate Cannabis Stocks