$CBWTF $Cannabis Wheaton Income Corp.
Now it's time for the second major wave leading up to full legalization. And this one's going to be a doozie. Right now, I can really only think of one marijuana stock that is undervalued when compared to the competition: Cannabis Wheaton Income Corp. A relative newcomer to the scene, Cannabis Wheaton is led by a team of established industry experts. Their CEO, Chuck Rifici, is the former CEO of Tweed (ie. Canopy Growth) and the former CFO of the Liberal Party. Cannabis Wheaton was also recently awarded Startup of the Year by Lift.co, and Rifici was awarded Innovator of the Year.
Cannabis Wheaton's streaming model allows it to scale up much quicker than any of the other LPs. CBW's current projected grow space easily eclipses both Aphria and Aurora's square footage combined. At last count, CBW is getting ramped up for at least 2.5 million square feet of marijuana production in the near future, which is more than double what Aphria and Aurora each project individually. Aurora Cannabis, for example, currently operates under 100,000 square feet and keeps pushing back the launch date for their white elephant Aurora Sky project at 800,000 square feet, making it possibly the most overvalued marijuana stock right now. In contrast, with its new deal with FV Pharma, Cannabis Wheaton is now poised to develop the single largest marijuana growing facility in the world as but one of the almost 20 investment deals in its portfolio. The first phase of the FV Pharma operation may actually be online before Aurora Sky!
If you want to know more about Cannabis Wheaton, you can follow other posts and look up the news on the latest deals that helped push the stock price from $0.86 to a new high of $2.02 [+135%] in the final trading days of 2017. The latest deal with FV Pharma and the licensing agreement with a cannabis testing company also demonstrate that the team at Cannabis Wheaton is very serious about contending for the #1 spot in this marijuana race. With product already coming in as of 2018, CBW will be well poised to take full advantage of the coming recreational market. I also have a sneaking suspicion that Cannabis Wheaton may be part of some of the larger MOUs that will surely be announced by Quebec, Ontario, and British Columbia in the coming months.
That being said, if you bought $5500 of Cannabis Wheaton at last Friday's close, you could have picked up 3200 shares at $1.71. But I don't think you will have that opportunity much longer. Cannabis Wheaton's current market cap is $451M, which compares quite humbly against Canopy Growth at $5.6B and Aphria at $2.8B. Aurora's market cap of $4.4B places it at a whopping 134X current earnings. If anything goes wrong or gets delayed with Aurora Sky, their share price will plummet. A lot will be revealed about these companies as the next quarterly reports come through in 2018.
Cannabis Wheaton, of course, does not have earnings to report in 2017 since they have only been trading since last May unlike the other major players who have been around for a few years. Remember, Canopy Growth has been trading as Tweed since 2014. It took them quite a while to get where they are. But 2018 looks strong for Cannabis Wheaton. Rifici & Co. are aggressively committed to giving Bruce Linton and Tweed a run for their money. And the money is about to start pouring in to Cannabis Wheaton.
Based on the overall trends in the marijuana market so far, I conservatively expect the share price of CBW to easily jump anywhere from $10-20 this year. While the bulk of marijuana stocks are set to gain in 2018, I think the best opportunity for investors right now is by far Cannabis Wheaton. If you can still pick up those 3200 shares at $1.71, when the company reaches a valuation of even $3B, you'd have a share price of $11.37. That's a tax free gain of $30,000 on a $5500 investment. But seeing as CBW is poised to actually contend with Canopy Growth, the upside over the next 1-3 years is definitely much more than that. While just about any of the marijuana stocks will likely earn you money in 2018, I think investors stand to profit the most with Cannabis Wheaton looking ahead to 2019.
For more follow information I find on this stock and other stocks DD you can follow me on my Investorhub account. Here's wishing everyone a Happy New Year and here's to keeping it LONG & GREEN! $CBWTF[color=red][/color]
