During the ongoing COVID-19 pandemic, Grizzle economist Chris Wood has built an enviable track record of accurately reading the Federal Reserve’s intentions and forecast the board of governor’s every move. In this week’s Macro Battleship, he is back at it again. Chris takes a trip back in time to World War II to look at what the future likely holds for both interest rates, bond yields and inflation.
Canopy’s expensive multiple and disappointing results means this stock is a terrible bargain compared to cheaper, more profitable and faster-growing US competitors. For much more commentary on Canopy earnings and what it means for the greater cannabis industry see our live show.
Recent strong performance in Canadian cannabis stocks is largely being driven by strong sales data in March. Consumers stocked up on cannabis as the pandemic took hold driving sales up 19%, the largest monthly increase since August 2019. We expect sales growth will cool off now that consumers are sitting on extra inventory and recent data from April looks to back up this view.
Jamaica has been extremely slow on the permitting front. Couple this with few export opportunities and it makes sense for licensed producers to refocus on other regions with more growth potential. Jamaica may yet have its cannabis day in the sun with very low growing costs, but it won’t be soon.
Consumer demand for CBD (derived from hemp) is plateauing at the same time a glut of hemp from the 2019 harvest is pushing down wholesale CBD prices. The industry is completely commoditized right now and in our opinion investors should steer clear of any pure CBD stocks until the industry can win the trust of consumers through better testing, regulation and standardization.
46 LP’s are licensed to grow on 450 acres for the 2020 outdoor season. Outdoor cannabis will disrupt the low end of the market for flower and will also hurt prices for edibles, topicals and any other cannabis derivative. We will know the true impact when company’s report 4th quarter 2020 results early in 2021.
Excellent article talking about the metrics investor’s need to look at to judge which SaaS companies are most at risk of customer downgrades and churn. You want to avoid owning hypergrowth companies that fail to report the expected growth at all costs.
An interesting look at potentially the next step in data collection. 3D data collection is gaining steam, adding much richer data than just location, but will create totally new privacy concerns for consumers.
Zscaler has been one of the best performing security-focused SaaS stocks YTD and these results will push the stock even closer to our $110/sh sell point. We’ve laid out our long term target price as well as our buy and sell price in this in-depth note.
In last week’s episode of Grizzle live, we take you through our buy thesis on Penn Gaming in detail. The stock is easily worth $60/sh, but could trade through $100/sh if the company is successfull with its push into online sports betting and gambling.
Tom lays out the relatively straightforward bull thesis for silver with a compelling chart.
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