Replies to post #640 on Cresco Labs Inc (CRLBF)

[FUNMAN]

Revaluing PPS's based on more realistic buying habits.


Why Medical Cannabis Stocks are a Safer Play Than Recreational Ones


Oct 4, 2019
By: Connor Doyle


https://microsmallcap.com/why-medical-cannabis-stocks-safer-play/


It’s no secret that the cannabis industry has been under-performing for a while now. In 2019, short interest in cannabis stocks has risen 55%. That, coupled with a plague of vaping-related lung disease and death that’s sweeping the United States, has caused investors to shy away from an already wounded space.


For the last six months, the Canadian Marijuana Index has trended consistently downward. It was at a high of $110.67 on March 21 and reached a low of $46.46 on October 1.


That’s a huge warning sign for investors that their hopes for the cannabis industry might be going up in smoke. However, a more careful examination of the industry reveals that not every sector is suffering.


Recreational Cannabis Stocks are Struggling…


Last month, the world’s second-largest cannabis company, Aurora Cannabis Inc. (TSX:ACB) (NYSE:ACB), posted Q4 financial results that were weaker than expected. The company raised $98.9 million CAD for the period ending June 30, but analysts expected Aurora to post sales of $108.3 million CAD, based on its earnings preview from July.


A similar thing happened in August to cannabis retailer Curaleaf Holdings Inc. (CSE:CURA) (OTCQX:CURLF). Analysts expected revenue of $49.8 million, but the company posted net revenue of $48.5 million, with a $24.4 million net loss cherry on top.


Both cannabis stocks suffered price drops as a result. While there are several factors to blame the revenue misses on, an important one is the lingering popularity of the black market for recreational cannabis.


Reports have shown that, despite legalization, millions of citizens in California and Canada are still choosing to buy marijuana illegally. In Canada, the numbers could be as high as 40%.


Many analysts are saying the “green rush” that began last October with Canadian legalization is over. Companies are adjusting their revenue projections, and investors are tapering their expectations.



… But Medical Cannabis Sales are Booming


Since the 2018 Farm Bill was passed in the US, low-THC, high-CBD hemp can be cultivated and sold all over the country. As CBD has a host of health and wellness properties, this has created its own promising market that has the potential to put Canada’s profits from legalization to shame.


According to a report from the Brightfield Group, the CBD market in the United States is on track to be worth $23.7 billion by 2023. This makes the health and wellness sector the most lucratively promising aspect of investing in cannabis stocks.


Perhaps the most significant catalyst for this is the fact that medicinal cannabis users tend to be a lot more reliable customers compared to recreational users.


According to the Motley Fool, medicinal users buy and consume cannabis at higher and more consistent rates, and they’re even more likely to purchase CBD derivatives such as edibles, beverages, oils, topicals, and concentrates.


Cannabis stocks belonging to companies like Charlotte’s Web Holdings Inc. (TSX:CWEB) (OTCQX:CWBHF) that retail CBD/hemp extract products stand to flourish while recreational brands continue to wither.


In late September, CWEB announced that it is going to begin selling CBD gummies in 738 stores across 45 US states. Based on the statistics quoted above, these kinds of products will capture the market in the way that recreational-focused dry flower products have not.


Then there are companies like Ovation Science Inc. (CSE:OVAT) (OTCPK:OVATF), which specifically target niche CBD wellness applications. In Ovation’s case, that means creating products for the skincare market.


Ovation’s flagship topical is currently the #1 topical cannabis product sold in Nevada dispensaries. That’s the kind of result investors should be relying on.


So, a message for investors: start thinking of cannabis stocks in terms of a medical and wellness revolution, not a recreational revolution.

[Invest newbie]

I agree.

[Heywood4164]

Another good sign it the $100k insider buy Friday

[FUNMAN]

Investors, Entrepreneurs and Publicly-Traded Cannabis Companies Convene to Discuss the Current State of the Cannabis Industry

Nice to see CRESCO is a presenter.

New York, New York--(Newsfile Corp. - October 15, 2019) - OTC Markets Group Inc. (OTCQX: OTCM), operator of financial markets for 10,000 U.S. and global securities, and the Canadian Securities Exchange (CSE), a Canadian listing exchange, announced that they will host a Cannabis Investor Day at OTC Markets Group's New York City headquarters on Wednesday, October 30, 2019. The daylong conference is designed to support publicly-traded cannabis companies in the globalization of their capital markets and business development strategies.

This signature program provides investors and innovators in the cannabis space with exclusive access to market operators, industry experts and C-suite executives of publicly-traded cannabis companies for thought-provoking discussions about the current state of the cannabis industry. Industry leaders will share best practices, address challenges facing the cannabis industry and provide insight on OTC Market Group's alliance with the Canadian Securities Exchange to support the growth of the cannabis ecosystem.

"We're excited to host a dynamic group of influencers who are driving change and growth in the cannabis space," said Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group. "Over 200 cannabis-related companies cross-trade in the U.S. and have chosen our OTCQX and OTCQB markets as a more cost-effective alternative in which to raise capital, build global investor awareness and gain secondary access to U.S. investors. The exponential growth we see in publicly-traded cannabis securities underscores the willingness of these companies to provide more efficient trading and enhanced disclosure for investors."

The day-long event will kick-off with a fireside chat featuring Jason Paltrowitz, EVP of Corporate Services at OTC Markets Group and Richard Carleton CEO of the Canadian Securities Exchange, moderated by Bloomberg Cannabis Reporter, Kristine Owram.

The program will also include presentations by the following cannabis companies:

? Trulieve Cannabis Corporation (CSE: TRUL) (OTCQX: TCNNF)

? Flower One Holdings Inc. (CSE: FONE) (OTCQX: FLOOF)

? Ayr Strategies Inc. (CSE: AYR.A) (OTCQX: AYRSF)

? TerrAscend Corp. (CSE: TER) (OTCQX: TRSSF)

? Planet 13 Holdings Inc. (CSE: PLTH) (OTCQX: PLNHF)

? Cresco Labs Inc. (CSE: CL) (OTCQX: CRLBF)

? iAnthus Capital Holdings, Inc. (CSE: IAN) (OTCQX: ITHUF)

Discussions will focus on:

? Cannabis and the global regulatory environment

? Accessing capital in North America and Canada

? State of the global regulatory environment for cannabis

? Impacts of the Safe Banking Act for the cannabis industry

? Investor appetite for cannabis in the U.S. and in Canada

? Development strategies for today's cannabis companies

"Our partnership with the OTC Markets Group is a key part of the capital formation process for companies in the cannabis sector in North America and beyond", said Richard Carleton, CSE CEO commented. "With a Canadian public listing, companies gain access to prospectus-exempt capital raising opportunities in the US, as well as the deepest pool of secondary market liquidity in the world. We are delighted to be hosting the industry at this important gathering of industry leaders."

Following the event, there will be a cocktail reception and opportunity for networking with Canadian and U.S. colleagues.

To register for the conference and view the complete program agenda, please click here.

About OTC Markets Group and the CSE North American capital and visibility solution

OTC Markets Group and the CSE visibility solution offers issuers the CSE's IPO listing and trading services, coupled with enhanced U.S. disclosure distribution and secondary trading on OTC Markets' OTCQX Best Market/OTCQB Venture Market. Both OTC Markets Group and the CSE emphasize simple processes and fixed fee structures that remove much of the cost, time and complexity typically associated with going public on an exchange. This unique alliance offers an efficient alternative for cannabis companies seeking to raise capital, build global investor awareness and have their shares trade in two of the world's largest financial markets.

About OTC Markets Group Inc.