How to industry sign banking maine presentation later
hello everyone welcome to our webinar a very special webinar I might add today we have a topic that too many people might conjure up some negative connotations other people might look at it and think well this is very positive and lots of opportunity out there in the cannabis industry today we are going to look at specifically the risks rewards and maybe some of the things you need to think about when looking at this industry really want to talk about it as a big community right there's a lot of different aspects to this so today's webinar presentation is understanding the cannabis industry and the risks to investors again this is fully interactive so for those of you who are live with us right now please join in our discussion I will as I can interact with some of those questions and hopefully answer all them on air today because it is a pretty lengthy webinar we're gonna have probably a little bit longer some of our normal ones no um first want to go into some of our Twitter polls and Facebook polls just so you guys understand what the the results are and kind of what the community is thinking about this asset class because there are a lot of mixed opinions about it first one was from all my training academies Twitter feed it says what's your biggest concern about investing in legal cannabis well I was kind of surprised here it seems to be very very even with the overall I mean through all the results right you got government regulations you've got not enough info fear of bubble bursting and none let's get started right now and I think a lot of people kind of are across the board here it's even I thought it would actually be number one government regulations but that's actually the last place here most people seem to be eager and ready to roll with it would you be open to investing in legal cannabis such as hemp products or biotechnology most of you saying yes you would be open to that 23% of you saying not sure and the final one from our Twitter feed as well and online Trading Academy says if you were to invest in the cannabis industry and what sector of legal cannabis or the cannabis industry would you be most interested investing in again this one I'm not too surprised most people were looking at cultivation because that seems to be where all the focus is on the retail side of it 29% saying hemp produc products 25 and biotechnology and 16% of you saying investing and in finance which is also a very popular area right now now I'm going to go to this picture right here and for some as I mentioned it might conjure up some real negative connotations you might have some purse issues with the plant or maybe substance abuse or the other sides of that issue others look at it maybe hope and positive and optimistic we want to make it real clear that online training academy in no way supports the use of illicit drugs in any way shape or form it is up to the each and individual viewer out there today to take what they want from this presentation but we don't want to make it come across like hey we're pushing this topic we want to make sure as a educational entity that we are informing the public of this asset of this investment vehicle of course the risks and rewards out there because you know in every class you've taken with online trading Academy the first and foremost piece towards your success is risk management and we're going to talk a lot about that today most people are looking at this as tremendous opportunity people like myself think that as well but we also know that when we have opportunity we also have increased risk so you can be very careful out there and hopefully today will open your eyes to some of the risks that you might not be paying attention to so let's dive quickly into what is cannabis I really want to break this apart because there is this negative connotation or negative association that the industry is done we'll call it propaganda if you will going back into the 30s where all of a sudden marijuana it's bad you guys can watch the movie reefer madness and see that one in action well we need to understand it's really two completely different animals and it's all derived from one plant that plant is cannabis which is the topic of today's discussion and of course the leaf looks very similar to that now what's different about this is the way that it's broken down so when we start with cannabis you really have cannabis sativa in cannabis indica which I'll break that down here a little further the part that most people are very negative about what really caused all the bans and the marijuana tax acts in the 1930s was THC that is tetrahydrocannabinol which is the psychoactive element of it this is the one that gets people high and this is the one that's caused most of the issues with regards to politicians and regulatory agencies that's why I highlighted in red here it does have some medicinal effects one thing that we have to all understand here is there hasn't been a lot of research done on this because it's not an FDA drug at some point now that the doors are starting to or the door starting to open up here we will see the da come into the picture and now do a lot more testing so we'll get a greater understanding of these different cannabinoids and their impact on our body our health and system which could be very good could also be bad we don't know yet so THC is the main one out there that is the psychoactive ingredient so you hear me talk a lot about THC many of you probably know a lot about it let's dive into some of the other ones because these ones here like connect kind of video I'm horrible at butchering these names and I apologize it's cannabidiol there we go is CBD this one there is a lot of controversy about it is a Schedule one drug right now and people are really looking at CVS as this miracle thing that relieves chronic pain anxiety mood swings helps control seizures it's a sleep aid some are even saying it has cures for cancer potential which is obviously something we would love to know more about if this actually does have an impact on cancer there's also things like CBG which is canopied jur all which helps with glaucoma Crohn's disease anxiety depression you have CBN which is one that I'm actually interested in because I'm an insomniac and it's one that really helps as a sleep aid this is can abide all pain relief sleep aid bone healing and healing of bone cells a lot of very positive sides to these CBC is canna by chroming which is an anti-inflammatory for the intestines it's it's actually surprisingly a strong reducer of acne I did not know this but in doing the research for this there's a lot of very interesting medical parts and that's just four or five here's another one there's over 100 different SI cannabinoids in this plant we don't know a lot about them we're still discovering those so to me that's kind of exciting from the drug side of it women when I'd say drugs I mean in acne medication carrying crohn's disease carrying different bone issues or maybe even cancer that's a phenomenal asset so how does this plant break down because the industry has painted this very negative brush because of THC and again I would encourage you watch reach reefer madness it's actually a very entertaining film here is the breakdown indica and sativa are two different strains of cannabis it gets kind of branches off in these two different parts the indica side is where you have marijuana and that is something that's very high in THC which you know that's the recreational side what you're seeing kind of grow all over the United States and the world that is the THC side when we look at the sativa side we have marijuana as well you have a high THC variation on this atiba side but you also have the hemp side and that's a big differentiator because the heavy side is very low in THC generally less than 0.3% so it is not psychoactive in any way you could smoke an entire plant of hemp and probably have a horrible headache so we have to understand that you can't lump all of it into one category and say oh it's all marijuana it's all bad THC is the side that has the psychoactive ingredients hemp does not and hemp interested enough has a lot of industrial uses in 1938 popular science magazine wrote an article that showed 25 25 or 28 thousand uses for hemp plants like a 25,000 and my crack team of researchers here is only 25 25 so that is a lot of different usages out there we talk about the futures and commodity side of this in a little bit I'll break that down a little bit further so now let's dive into the history of it because to me this is really important for most of us we live in a period of time right now an era where it has been criminalized for as long as I can remember and that really started in the 30s and we'll get to that in the timeline so if you look at the history of America it's actually been legal much longer than it has been illegal interesting enough so let's start off with some very cool little facts for you little tidbits for you take back your co-workers to talk to your friends about one fact that I love is this one here in 1492 Columbus sailed the ocean blue we all know that one and we can have debates whether he discovered America or not the bottom line was whoever discovered America whoever took a boat over from England or the Holland or wherever they started off Spain they wouldn't have made it to America they would not have made it if it was not for hemp that is not the THC side that is the fibrous part of the plant on the cannabis sativa side which has no low THC they were using hemp for their ropes they were using for their sails so they would not have gotten here without it they were also using it for oils for the decks oils for the lanterns they were also using it not to fill in spaces on the planks on the boat as a sealant so really it's incredible to think of how impactful this prohibited plant has been in history we would not be having this conversation right now or maybe be in a different place if it was not for him also the stores of the Santa Maria historically been documented is showing that they had massive stores of cannabis seeds to use as food because it's very nutritious and also to grow once they reach whatever land they got to so kind of cool I love the question now him says CBC CBC never helped my acne in high school all right like that all right so that's 1492 and of course it has a earlier history than this of course we could look at the history of cannabis itself but I'm starting really kind of here domestically in the United States 1616 we can move to Jonestown which is the first permanent English settlement in the new world again they were still growing hemp sails ropes continue to be made of hemp fabrics they were using it for clothes and other goods also it becomes illegal not to grow cannabis crops in your land in some of the colonies so you go back to a Virginia and other ones were saying look you have to grow it's against the law not to grow it on your land I would strike me as amazing that would actually be the rule but that's how it was for a long time in some colonies it was actually used to pay your taxes and used as a currency which is a very interesting one and this is really the history of cannabis cultivation in North America this is kind of where it really started was 1616 I think was 1619 you actually had Virginia make it a law that everybody in their colony had to be growing oh yeah well yeah James done so 1937 we started to see something different now let me just go back a little bit before 1937 and talk about what was going on Wizard of Oz is a great movie I one of my favorite movies of all time remember the the I forget what his name was but the guy dry riding around a little carriage that Dorothy actually meets and his rent taking shelter from the hurricane a tornado he was a guy who was doing magic and selling potions and concoctions well what I think historically of the 1900s I pictured these traveling salesmen going around selling little jars of miracle drugs and miracle tonics and miracle potions you know standing up and selling to crowds what was happening was a lot of that was using different illicit drugs so some were using cocaine and those things I mean the original coca-cola you can also go to using a lot of THC so what happened is a star to add a little bit of regulation to it because it was being used as a pharmaceutical and they started to crack down on that and then there was a heavy propaganda push I think reefer madness was 33:35 somewhere in there to criminalize the drug so we had the marijuana Tax Act which basically right away criminalize the cannabis industry both hemp and marijuana it lumped them together obviously him is not a toxic or dangerous drug so this became the nationwide criminalization of it now we can move forward a little bit of time here we're going to move all the way up to 1970 with the Controlled Substances Act this was interesting because marijuana the marijuana Tax Act was repealed but now all of a sudden it's it's a Schedule one drug for those of you who might not know what a Schedule one drug is it's defined as a drug or substance or chemical that has no medical use whatsoever and a high potential for abuse some examples of that are heroin LSD ecstasy and cannabis so you could be addicted to hemp and it has no medicinal uses whatsoever it was just it's archaic to think that we still have in place today of this from 1970 which really doesn't make any sense would you say that the marijuana side of the cannabis plant does have some medicinal properties yes is it open to substance abuse sure it is but there's medicinal uses out there it's actually they're saying far more dangerous and things like cocaine and this is according to our FDA which is very very interesting in my world alright I will move forward so we've gone from 1937 we jumped in 1970 now we start to see our timeline here is still red but all of a sudden it starts to turn a little bit of green now before 1978 the United States there were a couple of states that were actually decriminalizing it so not putting prison sentences on possession maybe having small possession is okay New Mexico really was the first state in the Union to say we are gonna pass legislation for medicinal marijuana use it's interesting I actually thought that this was California but New Mexico was the one that took the lead there which really started to open up the discussion for many other states about using medicinal marijuana now we move forward now we're all the way up to what is it 19 2019 which is today I think you would all agree we have come a long long long way 33 states have now legalized medicinal marijuana so you can go to 33 states within our Union and if you have a specific condition maybe Crohn's disease anxiety nausea and maybe you're getting treated for cancer you don't want to do chemotherapy there's other things you can do there's 33 states you can go to now which is surprising I'm hoping that we get more FDA research so all of a sudden we can have legalization of medicinal marijuana in all 50 states that's for medicinal it should be there 10 states have it legalized for recreational marijuana and this is really where we're starting to see institutional players buying into the industry which we're going to talk about later on today to me that's a very interesting point is now all of a sudden big money big pharma big tobacco big corporations are buying into it very quickly so that's where we're at today what's interesting is how this has grown so here you guys can see the map of the United States in Canada as of last year Canada went all legal recreational medicinal it's legal and Bravo you could see the whole country is now green you've got Washington California Nevada a bunch of other states there aren't legal the ones we're gonna show up here in this kind of light blue or whatever color that is cuz I'm colorblind that's where you have legal medicinal cannabis the other states it's still illegal so if you're driving through Texas not recommended that you bring your stash with you just saying even CBDs would still be considered illegal in some of those states which is it's crazy alright so that is our map of the US now I want to just give you an idea of how this is growing becau
e part of your decision whether to invest or not is to follow the money when we're trading a stock we're following the money when we've trading futures or Forex we're following the money and looking where those institutional buy points are as potential turning points that's what core strategy is all about so if you look here you can see the u.s. venture capital investment in cannabis companies according to Atlas research there's a tremendous number of deals I have a bunch of friends who are in the industry and their companies have been bought out and you're seeing right now a very quick consolidation where the big players are trying to gain a dominance out there you had over a hundred and thirty deals done last year by venture capitalists now it wasn't the biggest amount of money okay it is less than a billion dollars but you're seeing a bunch of transactions happen in the merger and acquisition area when we look at the merger acquisition here we go I have my numbers backwards at twenty almost twenty billion dollars worth of values with a merger and acquisition there we go and that looks to be about one hundred and ninety does but bottom line is do you see a trend it's spiking in 2018 I do think you'll see that trend continue maybe not to that slope that we saw from 2017-18 but there will be a lot more merger acquisition and money coming into the industry as long as regulations don't change we'll talk about these risks here shortly okay so what is the future hold obviously no pun intended there are high hopes for the future I think a lot of people are expecting this to be one of the biggest booms ever slow your roll be careful don't rush in it with that attitude while it is expected to growth these expectations differ greatly from the numbers I've gathered from about 12 different sites it looks to be about a 22 percent compounded annual growth rate is the expectation at this point for the industry by 2025 so that obviously would be a great growth forecast but that doesn't mean everything will rise up at that rate so you got to be careful here are is a forecast that I thought might be interesting for you to see of who will be growing so here is the United States growth forecast and it starts from 2017 all the way to 2022 it seems a bit linear for me it seems like someone just planned a straight line and drew it out but I'll give credit to the research company here in just a second but you can see in 2018 we were just over ten billion dollars in legal cannabis spending expectations are that we'll probably jump that up probably two or three billion this year and seems to be that way all the way till 2020 or 2022 excuse me when this forecast looks about 22 and a half billion so the interesting part though is the Canadian part the US seems to be the heavy consumers here if you look at this chart Canada just adding a little bit on a couple billion dollars but that is also growing and then worldwide the expectations are that this will start to spread a little bit more worldwide this is some arch view market research and BDS analytics but I thought that would be interesting to show you just because you look at the percentage of global population I would think that globally we would see some more growth here it's America a lot of consumption all right so I want to throw in one tidbit because this is one that a couple of you sent in last night and I wanted to address this so thanks to our team for put this together on such a short notice prohibition prohibition went from 1920 to 1933 which is basically where they said no alcohol whatsoever now we can have a debate on this program right now about how we could compare cannabis as a whole if you take campaign marijuana and then you have on the other side alcohol and say which one is more dangerous to humans to society but we won't go down that path so from 1920 to 1933 we had prohibition where basically carbon said till legal to have manufacturer possess alcohol right so what did that do well that obviously crushed a market so alcohol producers were getting crushed I want you to think about what do you think would happen when Prohibition was repealed if you knew that in 1933 the prohibition was gonna be repealed what do think wasn't happen those alcohol stocks should they soar go to the moon well take a peek at this chart in your minds as you're watching this right now at home and think about which side do you think the spike would be on do you think the spike would be during prohibition or after after 1933 and of course it was the end of 1933 so I'm just gonna say 1934 what side of that line do you think the spike in prices would be on the left to the right it's actually kind of funny this is the old classic adage of buy the rumor sell the news so this is some of the distiller prices who are around between 1929 1936 here is one called can commercial solvents yes they were manufacturing alcohol it spiked about five months before prohibition was repealed so it was spiking before the announcement you have Seagram's which actually rallied right up to the repeal of prohibition and then sold off you had national distillers and chemical corporation also big spike up right before prohibition and then sold off dramatically and then I think was bought you have US industrial alcohol same thing big spike before the point of getting out here is most of these companies spiked before the repeal of prohibition and after that they just sold off so you got to be careful with this because we are seeing this not quite repeal of prohibition because it's big incremental at state-by-state but we may have already seen a lot of the big spikes already which really for me is a cautionary note saying look be careful don't rush into it make sure if you're buying any of these companies you look at the price chart and don't get caught up in the euphoria we had a listener on the program months and months and months ago when tilray was spiking and he had mentioned look I bought so ray I think was at 40 bucks and it jumped to 150 and he asked me said what what I doing is well if I bought something at 40 and it was at 150 I would I'd probably unload it you know that's a parabolic moon short time over the next day I think it ran up to 300 or $350 and of course is it why why you tell me to sell it and today it's down at around 45 so we do get these parabolic moves be careful not to buy into the frenzy and the hype which is surround in this industry as a whole now let's dive deeper into the cannabis industry itself now I'm kind of bundling two things together we thought about initially breaking this up into just the marijuana side of it which would be THC base and then looking at the cannabis side of it or the hemp side of it which would be more than the CBD s and other cannabinoids but I'm gonna kind of mix those two together for the sake of time let's start things off with the industry itself of course the if this is a huge scope of products services and industry components so I'm probably not going to do the most complete job here but I'm hoping to touch on a lot of areas so that you start thinking more than hey it's just a pot shop on the corner in my hometown it has way bigger reach than that so let's start things off with the cultivation side of it obviously cultivation is an important part right we have to grow it but there's two different cultivation processes you have the outdoor growers so if you are from Mendocino in Humboldt County hi everybody if you are from Southern California its indoors and big warehouses Denver indoors warehouses so real estate companies obviously need to be impacted so what other areas do we need to look for well if you're looking for the recreational side of cannabis it's pretty much all done indoors most of the outdoor stuff just doesn't have the the same strength that you can get by growing under artificial lighting so you have lighting companies which might be a an investment choice if you're looking or the big manufacturers of the lightbulbs they use for growing or the high-pressure sodium metal halides and that type of thing you have fertilizers which are very special it's not just as simple as going and buying a bag of soil at the local Home Depot there are special requirements that people are looking for specifically for growing and I would argue that you might want to look at companies that are very big in the hydroponic space since hydroponics is really a indoor growing method a lot of growers are using hydroponics which doesn't really use the same type of soil it's difference liquids you also have seed now seed is an interesting one because this is where Monsanto is jumping into the game and of course a lot of people are fearful of Monsanto because Monsanto is gonna buy all the seeds and copyright their strain like you did with corn a few years back well it is definitely a concern but there are going to be needs for bulk seed manufacturers what a lot of farmers of marijuana and cannabis and hemp will do is they are going to cultivate their own seeds in a controlled environment so it might not be as necessary to have somebody like Monsanto around but there is something to think about there are ETFs out there though that will allow you to kind of buy this whole industry of cultivation in one as opposed to trying to find each individual company all right let's see a distribution don't have a lot here I think we can all understand that there is going to be a need for distribution here and it was we wanted to bring this in because you have to get it from one part of the state to another there still are a lot of regulations that would make it illegal for you to traffic a truckload of marijuana from let's say California to Arizona you could potentially go to prison for that is because the rules are in place now there are those are changing depending on what states that some are more leaning on that but there still are interstate trafficking rules so think of it from a couple different perspectives first shipping my package on Amazon Prime that's some guy in a little car can do that not that big a deal but when I'm looking at shipping you know 600 kilos of marijuana or essentials or concentrates or products that have THC or in this industry you can imagine that's very expensive so you're probably going to see specialty companies armored like almost like Brinks type trucks to transport this product around because it's very expensive you know you don't see armored gas trucks because it's a little bit harder to steal a gas truck but you can't steal these cars pretty quick so I think in the future you'll probably start to see companies come up that are going to be in the distribution protection industry I know it sounds kind of weird but it will probably be a necessity at some point other than that not a lot in the distribution side right now one side that I think a lot of people do not think about is the testing aspect to me this is critical you know one of the issues with the recreational side of cannabis is you know you could go to your a buddy of yours who's selling you some pot and you don't know what you're getting you're getting oh it looks good that's green okay great part of why this is so important and why the legalization is important is because there will now be a central entity controlling it so when you go to buy something just like I go by I don't have any products here with a label on it but you look up any food package yoga beer even nowadays has a little barcode on it which will tell you here's the the calories the sugars the carbohydrates it seemed a little bit different for the cannabis industry but here's an example this are just some examples of different testing companies and the label might look like this this one here 23 percent THC no CBDs a little CBG and some cbn so they're gonna start to break down the component and I'm gonna just flip through a bunch here so you can get idea they're all kind of different but basically they're gonna give you the same basic information I was in Oregon a couple years ago and went through a dispensary up there and it was really fascinating there's looked a lot like this I mean this is an incredible breakdown of a specific strain so here's a cannabis sativa called Sour Jack right this is recreational marijuana but you can see all the different profiles so you have up here you can see that the cannabinoids we talked about you've got THC you got CBD CBG a CBC a THC VA all these different components and each of them have different properties and benefits you also have terpenes which are flavor components which is an interesting one does it have a more of a Lyman lime taste or lemon or citrus or pine and it breaks all that down for you I think that's fascinating it is an industry that I think will gap business because if I'm a grower whether I'm outdoors or indoors and I need to sell my product and do it legally I have have a label on it to show that it's been tested in Oregon they would even tell you what chemicals were in the soy where their trace elements of you know the one guy was telling me that this specific testing lab would test for the component that roundup has there's a chemical in roundup everyone's a head over heels about how bad it is it would test for that and if it was they would actually immediately reject that crop and I'm like wow this is great you know you're getting something that doesn't have all these dangerous components in it that's all about testing and there will be labs for each state I think it's going to be for each state because if I'm in California I don't want to send it to this one here which is in Whistler Canada and then have my product shipped back obviously I want to do that locally and it generally has to be a third party so there will probably be some accredited publicly traded companies out there in this space here soon retail products I think this is what most of us are going to see on a regular basis is what's the retail side of it well there's a lot of different stuff here as well so I'm again I'm bundling the cannabis and sorry the hemp and the marijuana sides together but let's start off with the medical side I think that this is what most people should be really excited about is that just the potential for the municipal side of it if you're like me you probably look at big pharma and shake your fist a little bit like darn it you know I bet we could probably do things in a maybe a better way but big pharma gets us hooked on drugs so medical we have things like drinks and there are a lot of drinks out there that will be infused with THC infused with CBD that is a pretty important step from the medicinal side we can now consume it in a bunch of different ways many people just view it as uses just smoking right well you can drink it there's oils and extracts and tinctures there are companies out there that specialize just in equipment to extract those CBDs or THC put them in a liquid form so now you don't have to deal with the plant at all you can just take a little drop on your tongue I've seen some very very very powerful videos of children who have I believe it's called bells Bell's palsy I believe it's where they get massive tremors and seizures and they're on all these different chemicals and drugs and these families try CBDs and different combinations and CVS and all of a sudden these seizures stop and it's just a little drop onto the tongue I can't wait for more further research from the FDA on this stuff edibles as well you guys probably see cookies and bars and gummies and pretty much if you can eat it there's a an edible form this came out today this morning literally was announced I have to read it to you because it was it was comical if you guys live in Colorado at 4050 Colorado Boulevard in Colorado on April 20th 4/20 which of course is tied to the cannabis industry they are issuing a burger I'm not making this up this is true and I bet you that it will be the longest line for a fast food restaurant in history they're calling it the Rocky Mountain High cheese burger delight it cost four dollars and 20 cents it will be for one day only as a test on 4/20 and it is going to have CBDs infused in the sauce on the burger I mean now let's take it a big step and it keep in mind this is still a Schedule one drug so
I'm kind of curious to see whether the the DEA is and they come raid them and we're taking all your sauce you can't have that burger today but this I think is where it's going to be headed if we know that CBDs have no psychoactive effect you're going to eat that whole burger and not be like wow I'm freaking out man but there are medicinal benefits to CBDs I have a lot of friends who rave about it anyway we won't go any longer in that one lotions and and tonics things you can rub on your and your skin have also been very popular I have some friends that I work with that they got logo running have really sore knees and they'll take a CBD cream and rub it on their knees and they say they're paying aches and pains go away there's a lot of research still to be done but this is some of the ways that this is applied medicinally to me there's a lot of a lot of growth in those areas and some of the companies we're gonna talk about here shortly are expanding greatly into those areas recreational of course we have the loose leaf let's just go by the flower and smoke it you also have the edibles which are generally gonna be much higher in this THC side you saw this in Amsterdam Amsterdam was famous for this right you could go to Amsterdam and sit in a coffee shop buy some cannabis smoke it there have a cup of tea a cup of coffee and just relax and it's okay I see that actually coming to certain states soon it's not there yet but I think it will be you also have tourism and we call it cannabis tourism here in California there are companies starting up which will like brewery tour you fly in you set up a hotel and they will drive around and take you to all kinds of dispensaries these are also companies I don't know about it they'll go public but you have companies like med men who have done very well just in the distribution of selling the loose leaf cannabis and other products from the industrial side this is really where I'm extremely excited I think that this is probably most exciting part for me is the industrial aspect to it we're thinking things like rope you have fuel right so at some point wouldn't it be interesting if we could actually power our car with a hemp fuel I mean I don't know if that's possible but I know that they were using it for lanterns so it's just a refining process right you can also use it for food some of you that are in the holistic arts know that hemp seeds are incredibly nutritious there's actually you can buy hemp milk so from one plant I can extract milk I can also eat the seeds for nutrition I can write it down to use of this flower I can use that plant as fibers I can make clothing out of it I can do a ton of different stuff with the hemp product now when you say industrial that's generally going to be the hemp side of this all right who get along with it all right sorry I want to read all your questions here I might have to save that right to the end there's a ton of them coming through all right companies and institutions are the major players we're gonna see here now I want to talk about a couple companies but let's let me just go big picture here and say I want to be very clear on this one these are not solicitations when you look at these companies you have to understand that these companies are publicly traded on an exchange the only ones I'm going to mention are publicly traded the reason for that is this there are a lot of shysters a lot of people that will do what's called a reverse merger and go back into a shell company and create a fraudulent business I don't want to promote those I want to talk about those as online Trading Academy would always say it is about understanding the risks to you just because these companies I'm gonna mention are listed on a public stock exchange does not mean that they are 100% safe there are risks to them a lot of it comes from regulatory sides you always have maybe potential issues within the company but right now these four are the leaders in their space in what they do so let me walk you through those there's you know over 400 companies traded on the Canadian stock exchange and the US markets that are in the medicinal or in the marijuana space cannabis industry so let's start off with canopy growth this is the largest one out there canopy growth has been growing by leaps and bounds because of big investments it says over a half a million square feet of indoor greenhouse marijuana production half a million square feet guys that is some massive space and of course all of that is using lights and fertilizer in different parts we talked about in the cultivation phase it was the first federally regulated licensed publicly traded cannabis producer in North America it is on the Toronto Stock Exchange whoo-hoo now this really came to the u.s. in 2019 when they started trading on the NYSC so there are both exchanges the major piece here is I want you guys to think about who is buying who constellation brands who is the I don't know if they're just the distributor I don't say they make them I think they bought Modelo and Corona so they're in the beer area Wine and Spirits they invested four billion dollars so this isn't somebody saying hey I'm gonna buy a thousand shares and put in a million bucks or five million four billion dollars invested that is definitely a huge influx of capital into that specific company so one of the things I'm looking for with regards to my investments in this space is I want to make sure that that institutions are buying in if the institutions I'm talking your your goldman sachs your well it's from any bank or other companies aren't buying in that's a bad sign because they've done their research and see no potential there Aurora growth number two Aurora is got a whole bunch of different aspects to it they're doing engineering design of facilities they're doing breeding of cannabis and genetic research they're looking at hemp production and cultivation also looking at derivatives and home cultivation wholesale retail distribution so they are I would say a much wider scope of business out there as far as what they're doing they have eight licensed production facilities 24 countries and they are listed on NYC they were there in 2018 Freddie was saying Cronus well that's on here we got Krong Cronus here but tilray is is one of the more popular ones out there this is kind of an interesting one it was the first IPO on the Nasdaq that dealt with the cannabis industry kind of interesting it also has some very big ties so you have Novartis AG is working with them for generic pharmaceuticals they also signed a hundred million dollar joint venture with a B in verb to look at non alcohol THC and cannabis infused beverages so now you're gonna get your Bud Light and a bud not so light I guess depending on how you want to look at the THC content of that sorry jokes all day here in the studio but you know Budweiser and AB InBev is already looking at that market so it would not surprise me to see sometimes soon you going to the store and be able to buy some beer that had some THC in it or CBD in it that is just the way that things are headed they also do a lot with dried cannabis so they're doing extracts all sorts of oils and capsules so that's a lot of delivery methods here with tilray been beaten down as of late and will tell you that alright last one is Cronus just out of the top four here Cronus also has some big money coming into it it's a very diversified company as well generally they're looking at selling the dry cannabis and oils on ER it's missing a name called peace naturals they were also part of the sorry I'll trip there we go this is one I'm really excited about because I think if there's a war coming I'm gonna go to that slide here in just a second but Philip Morris's parent company Altria announced 1.8 billion dollars that they were putting into Cronus ok Philip Morris is I think or Altria will say is looking at this from the perspective of if you can't beat them buy them so the tobacco industry obviously is going to take a hit here as more people might look towards hey if I'm gonna smoke something I'd rather have some medicinal benefit as just nothing but downside to nicotine so I think you're gonna see this continue here's an interesting diagram I just put this together because I want you guys to think of the war that's happening historically in the industry you have the big dominant big pharma companies which will buy patents on maybe some something that could be beneficial for us they'll make a drug and then they sell us at an exorbitant price that drug you have big tobacco who has been taking a hit a lot of people are moving away from tobacco you have vaping become very big but I think you might actually see that switch if you could vape and be vaping with some like CBDs and actually get some health benefit out of it I think a lot more people would move to that so you're gonna get this war between big pharma big tobacco and big alcohol you already see big alcohol in the picture here with AB InBev jumping in and I think that's going to get even bigger insulation brands is already there and then lastly you have the investor so this is the the major drivers of it now how do you play it well you can play it in a lot of different ways and again I'm not going to come here as recommendations but from a risk management perspective I do have a recommendation as a risk manager you could go out there and try to find an individual company and I have only reason I'm profiling these we're not getting any kickbacks have no affiliation with any of it or no vested interest is because those are the major ones that are publicly traded on the Nasdaq or some major exchange if it's an over-the-counter exchange there's you know four hundred stocks on OTC bulletin boards but remember in OTC stock bulletin boards do not have to report their earnings they don't have to disclose a lot of information so you don't know what you're getting they may be big companies in the future on these bulletin boards they may be but it's a crapshoot it's just not worth it if you are looking at it it has to be with money that you literally look at it you're saying alright I'm gonna open up my wallet I'm gonna grab this this thousand dollar account here and I'm gonna buy this stock because I'm okay to throw that money away that's what you have to think about if you're looking at OTC bulletin board stocks they could go to zero there's been a lot of them that have look at the stock MJ MJ this is a company that was shooting up to twelve thirteen bucks back in 2004 they just didn't disclose any numbers to the regulator's regulators shut them down now it's trading at 0.0 0.0 one buy that one all right picking individual stock is risky because you don't know exactly what you're getting so one of the things we talked about and proct investor is instead of picking just one company which can be a little more challenging and open to risk because of gaps look at something that's diversified so you could look at an exchange-traded fund and buying an ETF one of the more popular ones out there is MJ which I do believe has all four of these before you buy into any ETFs please consider a couple things number one I want you to look at the liquidity of that exchange-traded fund make sure that you can get in and get out number two look at the fees associated with that exchange-traded fund make sure it's not charging a huge amount and the next component is make sure you look at the components so that you know what you are buying a lot of these ETFs have different weightings all right last part futures with the future side of it this is a question that came about multiple times and thank you guys that did send in this one they're asking do I think of there's a futures market for this for marijuana I say no I don't believe so there's hundreds of different strains you know Northern Lights and Chuck Chuck Berry and blueberry cheesecake it's just too many brands out there to have a a futures market for it unless it's an exchange that's only marijuana on the hand side of things I do see a futures market happening for hemp because you're going to basically have the most the quickest growing most producing plant would be the hemp side of it that's gonna be one main strain and I think that at that point we will see hem futures out there and remember it has far greater reaches than corn corn what are you gonna do you're gonna eat the corn you're gonna make ethanol out of it or you're gonna make a corncob pipe for your snowman when winter comes you got three uses for it other than that not a lot going on with hemp though we have 25,000 different cases you can make plastic products out of you can make floors you can make hempcrete which is by the way stronger than concrete because it's fibrous you also have yeah a bunch of other ones so let me go into the wrist here the wrist side of it is important the most important piece I don't want anybody to get caught up in the hype and here's a a fallacy that a lot of people have if we look at this picture here you guys can see that okay risk one to one if I take one component of risk I should get one element to reward that's the way the markets work now if you look here a lot of people think that you can all of a sudden get seven units of reward for the same amount of risk that's not the way these markets work it's going to be really a 45-degree slope so if you're looking to make four times the profit you normally would with the cannabis industry you're probably taking four times the risk that to me is a a fallacy a lot of people have is the the way that the risk is calculated so is there tremendous reward could you get a 10x rate of return on a cannabis talk absolutely they are out there problem is you could lose everything on some of these companies that go away the positive side of this though is and I think another one a lot of you guys have mentioned this in chat is we are going to see a tremendous amount of consolidation there's gonna be a lot more buying of companies going on and that is definitely bodes well for the smaller cap stocks out there so we've already gone through this but I want to give you guys just a quick example because I do believe we were almost in this now bubbles right I think you are seeing a little bit of a Cannabis bobble we had the tulipmania one we talked about that market crash of 1929 the dot-com crash and remember that's when everyone was jumping on inner socks for their greatest thing in the world and our market looked like this well over the next couple years we saw massive declines and you are see look at tilray a TL ry stock it looks very similar to this now not to say that's not going to get back up to those highs but it's just about market timing making sure that you're not jumping into anything you're rationally you also have that housing bubble that was a big one fueled by changes and regulation right now we're seeing this industry boom because of changes in regulation lastly I just wanted to show this one because this is a big hype you guys there's a chart of Bitcoin I think you guys can see with that massive spike down there near the bottom shot up from 50 to 1100 and then all the way back to 250 what's funny is if you look at this you see yeah that's Bitcoin well most of you weren't looking at Bitcoin back here in 2014 right you have a huge are sorry that they seem earlier than that into that red box is what I just looked at and then you had another huge boom bust cycle so be careful I think you might see this happen multiple times here with the boom bust okay with the political environment we have a question coming in from Nick oh sorry who said Freddie does have a good potential I you for asking me if I think that anything in this industry has potential yes I think there's a great potential but I think it's fraught with different issues here's one jeff sessions who is our former attorney general hated pot he was saying I will make it federally ban remember guys federal law supersedes or overrides state so if if all the sudden your state says great missiles great recreational is great okay we're all going to be happy and have cannabis everywhere and federal says it's still a crime can they come in with their DEA and fully rate and shut down residence
businesses absolutely they can so the regulatory the political environment to me is the biggest red headed is the biggest danger we have out there at this moment in time the good news is William bar who was the new attorney general he is anti cannabis however he said if it's a popular vote and everyone agrees on it then I'm ok making changes which is encouraging but still negative so one announcement one law could all of a sudden topple this whole industry I don't will happen but it can so you have to take that risk pump-and-dump is another one I can already see in the chat you've got a ton of people talking about different stocks that's a light form of pump-and-dump out there if anybody is saying hey buy this stock or that stock are this talk even me do your homework research it look at it make sure you know what you're buying because generally in my experience when someone's telling you to buy something they are already in it and they're hoping that you buy it to push up even further so be careful out there all right scammers dime a dozen guys dime a dozen I got an email yesterday unfortunately I can't remember it was about a cannabis oil breakthrough leaves doctors speechless that's exactly what the subject line said now I know have a robust spam filter so I was curious so I clicked that link immediately pops up says this is a phishing virus that will plant things on your computer we they know that we're looking for this stuff they know I'm looking for cannabis oil breakthroughs that leave doctors speechless wouldn't that be amazing yes it would so be careful what you're clicking on it's not just the email scams it's just scams in general people sell it saying things that aren't real and fraud fraud is going to start to become a more popular topic because what's happening is a company will start up give an example I could take a couple of my friends I could go buy an old shell corporation that's publicly traded on an exchange so it's a public company and then I can go in there change our bylaws and say we are now a cannabis manufacturer and I got five plants on my garage I make some financial statements and I can bogus Lee get my shares to spike around the exchange I can sell it and I can disappear before the fallout happens and the retail investor gets hosed do your research guys it's it's dangerous out there when you have a an issue like this red ones excited that's where people drop their guard with regards to risk management and they get hosed all right what should you watch out for insider trading is one there's a resource here I'm not going to go out to that website but you guys can click that link we have no affiliation with them I just found a resource that was nice go to insider tracking and you can click and find out are the insiders of these companies unloading their shares because if a company really have that great of potential would the insiders be selling probably not I mean if I knew my company was going to go from 10 million dollars a year to 100 million dollars a year I'm not selling one share a matter of fact I'm buying as much as I can so you can go in there type in the ticker symbol of a cup one that I did just as a test was tilray you see a lot of insider selling on Tillery over the last month which is kind of interesting given the share price trajectory which has been down another one here is SEC trading suspensions the SEC is generally late it's kind of like using a moving average to pick your entry points on a stock it is lagging however if you see that your company has issues with the SEC you should look at that as a red flag and stay away you can go to SEC gov you'll see a tab that says litigation just click on suspensions or click that link type in that link as you see it that's a great resource for you to check and see what the risks are of that specific company email spam you know garbage your email inbox preys on your insecurities so what do we do we get we get viagra ads we get Hair Remover loss ads and now you're getting cannabis ads it'll cure your life for everything so just delete them immediately delete don't even read the research reports because it's somebody pumping a lot of times what you have is if I have a company that's a small cap company a penny stock I will hire different agencies to go out there and pump my company and I'm paying them with shares so they're in incentivize to pump the stock and false or exaggerated claims a lot of people will make exaggerated claims about this yes there is a lot of potential I personally am optimistic on the industry but that means that I will be very careful with the investments and I make a lot of people say oh this thing's going to grow with a hundred million dollars a year we've got to step back and be realistic the cannabis industry the consumption of cannabis isn't it isn't it is not going to get to the point where every American is sitting on a kilo of marijuana that's just not gonna happen but will we see maybe areas of industry which will consume thousands of kilos a year like a fiber company a company making textiles where it could happen so that's what we need to think about don't get so hung up on the recreation side of it additionally I think it's interesting to see how this might impact Big Pharma so let me real quick sum it up is I've gone on this forty-nine minute run I was supposed to I was supposed to end this in 30 minutes so I'm sorry if I went long and then I'll finish and they'll go to some list of questions on number one be very safe out there please don't get emotional when we talk about this on power trading radio or any of our classes online Trading Academy we say look if you're making an investment decision get emotional don't go off what somebody's pushing you to do do your research be calm and collected you make that decision same thing with these cannabis stocks whether you're going miss '''l recreational or any other aspect of it it also has high risk yes I know some of you go there's no risk to buy until we're Kronus I disagree I think that there is still a high amount of risk so you have to take that in consideration just like I talked about that cryptocurrency webinar you shouldn't put all your money and grip those a small portion may be a small allocation portfolio if you feel like this is an area that has opportunity but do not pile all your money into it's just too dangerous and mostly be alert of scams anytime somebody tells me something about this industry I generally just check I laugh about it huh okay that's great I get it sure and then I move on so we've covered a ton information I know guys we could probably do like a five or six hour webinar on this thing because there's so much to talk about and dive much deeper and maybe in future webinars if you guys have some interest we could dive deeper into what some of those topics are I for one I'm very interested in the the can of the hemp side of it and the industrial products use yeah there's a the cannabis one was asking about the cannabis ETF the main one out there is just MJ that's the main one that has the most liquidity right now there's actually a new one coming in I think it's called Yolo I think it actually opened up today but remember if it opened up today what's the quit the liquidity gonna be like very very low so make sure you check the liquidity on any of these you can go out to any financial resource site and you know type in cannabis ETFs or marijuana ETFs but don't buy them yet look at them are they liquid what components are they hold because if you let's say wanted to buy those four we talked about well you can go buy an ETF that has all four of those in it and how you're spreading your risk around the only major risk that you'll face from something like an MJ ETF this ETF for marijuana stocks there's two number one is regulatory right if the feds come in and shut it down pet ETS done and you'll probably lose everything not everything you probably lose most of it the other side of it is the regulatory side for the banks that are funding and holding the assets for that ETF MJ recently lost that the person was holding their investment said I can't do it because they were that firm was going to lose regulatory protection and insurer Curren because they're now carrying marijuana companies so MJ recently moved to Wedbush morgan who's now holding their securities but that's a risk right it's still illegal now I think we're gonna see it change but right now it is still illegal as far as options available on these different instruments I think one of the questions yeah I don't know I haven't looked at the options side of it I'm pretty sure there there will be if there aren't already on those major four we talked about ya know Douglas said yeah I'm confusing CBD with THC when you talk about the Carl's jr. in Rocky Mountain High burger it has no THC I mean yeah it's just CBDs I said that I said you want to make sure that that's the case they would pretty sure Carl's jr. would have some legal problems if somebody ate a THC burger and then did anything crazy afterwards that's it who knows the CBD thing will be kind of crazy as we see it unfold so look the most important thing is be careful understand what you're doing if you would like to know more information about selecting a company to trade not necessarily just cannabis could be any company out there if you want to look at maybe the right way to look at supply and demand which is a little different for companies in the marijuana space I will say that but it still does have institutional buying we'll look at institutional footprints you can go to Ooty a webinar dot-com that's probably the easiest way to get information if you go there and click on that link you type in your zip code to tell you which of the 50 online training academies around the world and nearest you there were some in Denver out there so after you grab your Rocky high burger you can just swing by and check it out but there's a lot of opportunity out there for you guys to get involved in financial markets what I want to make sure we we gather from today is a couple things number one there is a lot of opportunity but is that opportunity is higher so are the risks the other part is I want you to be safe investors I want you to make smart decisions I want you to grow your wealth not get lucky or hit a grand slam on one company so it's about knowing your plan your strategy and tactic and approach don't get caught up in the hype that is involved with this entire industry and just jump into something willy nilly because some TV pundit or some friend of yours said you gotta buy this company and then you realize wow why did I buy that thing was absolutely junk that's a huge risk out there to to the industry so be careful out there hopefully you guys got a lot more information about the industry as a whole it's potentials and the potential risks to it again make wise decisions if you'd like to learn more go to Ooty a webinar comm and thank you guys so much joining us today hope to see you soon take care
