Liberty Health Sciences Inc. (fka LHSIF)

[Stockshound]

Capital doesn’t have a track record of being intelligent, and if it decides to get back into the pot market in a volume that takes it on another run, it won’t be discerning. Accordingly, investors inclined to pick their way through the cannabis space for fundamental standouts in a rising tide may consider paying close attention to net assets. Companies with low or no debt commitments have less to lug up the hill than their peers, laboring under convertibles who surely, will be forsaken by the market gods. Moreover, from here, the companies who are going to last will already be creating jumps in QoQ revenue and QoQ sales. A lag right now would be suspect.

Margin is the investment appeal in cannabis companies, and anyone who isn’t creating it now isn’t just going to start generating it over night. Careful capital scaling into these operations is going to use gross margin as a pathfinder to operating entities, as opposed to projects.