AFTER IT DOES MORNING EARNINGS
REPORT. THE CANADIAN POP
DISTRIBUTORS SAYING IT'S UP
TO $1 BILLION LOSS IN JUST 3
MONTHS,
I'M AND JOINING US NOW IS
PATRICK SANDERS ASSISTANT
MANAGING EDITOR FOR INVESTING
AT US NEWS.
WE HAD A CHART OF THEIR THE
STOCK AT 11% THIS MORNING.
UH WHAT CAN IT BE SO MUCH IN
THE LATEST QUARTER.
>>THEY CERTAINLY LOST A LOT OF
MONEY AND THIS IS ALL OF A LOT
OF IT IS REGARDING THEIR
EXPANSION. THEIR ACQUISITION
WITH COP CONSTELLATION BRANDS.
SO I THINK THAT IF YOU ARE A
SHORT TERM INVESTOR IN
MARIJUANA STOCKS. YOU SHOULD BE
NERVOUS ABOUT THIS. IF YOU'RE A
LONG-TERM BULL LIKE I AM I
THINK THERE'S PLENTY TO LIKE
ABOUT THIS STOP MOVING FORWARD.
I THINK IT'S GOING TO BE ONE OF
THE LEADERS IN THE US MARKET BY
2024 WHEN THE MARKET
IS EXPECTED TO BE ABOUT $20
MILLION.
>>WELL LET'S TALK ABOUT THAT A
LITTLE BIT BECAUSE KENNEDY SAYS
IT DOES PLAN TO DISTRIBUTE IN
THE US BY THE END THE 2020
FISCAL YEAR AT THIS POINT HOW
REALISTIC TO THINK THAT IS
PATRICK.
>>I THINK IT'S REALISTIC
BECAUSE IT'S GOING TO I MEAN
IT'S IT'S GOING TO BE IT'S
GOING TO BE A
VARIETY OF DIFFERENT TYPE OF
PRODUCTS WHEN YOU'RE LOOKING
EDIBLES BEVERAGES COSMETICS
GELS YOU KNOW THERE'S GOING TO
BE A WIDE VARIETY OF DIFFERENT
TYPE OF PRODUCTS. THEY CAN
PRODUCE A MAKE AND DISTRIBUTE
IN THE U S AND AS THE US MOVES
TOWARD LEGALIZATION OVER QUAKE
STRUCK REGIONAL MARIJUANA AND I
THINK IT'S GOING TO
BE MORE OF A BENEFIT FOR THESE
COMPANIES.
>>PAST YEAR WE'VE SEEN THESE
CANDIDATES, STOCKS SOAR SINCE
COMING TO MARKET JUST RECENTLY,
BUT IF YOU'RE AN INVESTOR WHAT
YOU NEED TO KNOW IF YOU'RE
THINKING ABOUT INVESTING IN
SOME OF THESE STOCKS LIKE A
CANOPY.
>>WELL I THINK YOU LOOK IN
REALLY WHAT'S GOING ON AND I'M
IN NOW. IN CANADA WHERE
RECREATIONAL STOCKS OR
RECREATIONAL MARIJUANA WAS
LEGALIZED NATIONWIDE IN 2018.
AND I THINK THERE'S CERTAINLY A
LOT OF INTEREST TO HAPPEN IN
THE US AND CANADA IS A GOOD
TEST CASE FOR THE U S. SO YOU
LOOK IN CANADA, YOU HAVE RIGHT
NOW A YEAR AFTER A RULING THAT
LEGALIZATION HAPPENED. 23% OF
THE MEN ARE REGULAR USERS OF
MARIJUANA. 12% OF WOMEN ARE BUT
DAILY USAGE HAS INCREASED AS
MUCH AS IT SITS MOSTLY
RECREATIONAL USE INSULIN IS
THAT IS INCREASING ON A
CONSISTENT BASIS. SO I THINK
BECAUSE THE US MARKET IS SO
MUCH BIGGER THAN CANADA.
PEOPLE ARE PRETTY EXCITED AS
FAR AS WHAT'S GOING WHAT THE
FUTURE HOLDS.
PATRICK HOW ARE YOU.
>>LOOKING AT THIS REPORT
AFFECTING THOUGH THE WIDER
CANNABIS INDUSTRY WANTED THIS
WORRY TELL YOU ABOUT HOW
INVESTORS SHOULD THINK ABOUT
THE COMPANIES BEYOND CANOPY.
>>THIS IS A BRAND NEW INDUSTRY.
AND WHEN YOU'RE IN A NEW
INDUSTRY. YOU HAVE TO SPEND
MONEY NOW TO MAKE MONEY LATER.
SO I'M MORE
OF A LONG-TERM STOCKHOLDER ALL
I
LOOK AT THINGS 5.10 YEARS DOWN
THE ROAD. SO WE I'M NOT A BIG
FAN OF OPTIONS TRADES AND
THINGS LIKE THAT. SO
WHEN I SEE THAT CANOPY IS
DOWN 30% IN THE LAST 3 MONTHS.
SUIT STILL HAS A PRICE TARGET
OF 52 BY BANK OF AMERICA.
I'M PRETTY EXCITED FOR THAT
TYPE OF LONG-TERM HER. SO
CANDIDATES WON BEST AND I
>>SAY SO WE KNOW HERE WHERE YOU
STAND IN THE LONG TERM GROWTH
BUT IT BY THE END OF
FISCAL 2020 RIGHT CAN IT BE
PLANNING TO DISTRIBUTE IN THE
US DOES THIS EARNINGS REPORT
CHANGE THAT TIME LINE AT ALL.
>>I DON'T THINK I MEAN I DON'T
THINK IT CHANGES THE TIMELINE
BECAUSE IT'S NOT A MATTER OF.
OK HOW MUCH ARE THEY GOING TO
DISTRIBUTE ARE THEY GOING TO BE
UP TO FULL PRODUCTION
BY 2020. I
THINK THAT THEY'LL BE ABLE TO
BE IN THE MARKET AND A
RELATIVELY SMALL LEVEL AND I
THINK AS LONG AS YOU SEE
CONSISTENT REVENUE GROWTH AS
LONG AS THE SEQUENCE CONSISTENT
PRODUCTION GROWTH, WHICH IS
WHAT WE'RE SEEING I LOVE THE
FACT THAT THEY ARE WE JUST
BELIEVE INCREASING THE
PRODUCTION
THEN I LIKE THAT A LOT AND THE
NEXT 2 QUARTERS OF CANOPY IS
GOING TO BE REALLY INTERESTING
BECAUSE THEIR INTERIM CEO SAYS
THAT THEY ARE YOU KNOW, THEY'RE
THEY'RE STARTING TO SCALE BACK
THE AMOUNT OF EXPANSION THEY'RE
DOING THEY MIGHT INVEST AND
THEY'RE DOING SO I THINK THE
NEXT 2 OR PARISH YOU'RE GOING
TO SEE BETTER RETURNS FROM
CANOPY BUT I'M MORE INTERESTED
IN THE LONG TERM AND EVEN JUST
A YEAR FROM NOW.
>>OF THE TALKING A LOT ABOUT IN
THE LAST 24 HOURS WITH THE THAT
WAS IN THE MARKET THE WARNING
LIGHTS OF
A POTENTIAL RECESSION ON THE
HORIZON. AND THE IDEA OF
CERTAIN COMPANIES FAIRING
BETTER IN RECESSIONS THAT OTHER
TYPES OF COMPANIES AGAIN VERY
NEW INDUSTRY IN TERMS OF THE
THE PUBLIC
MARKET ELEMENT OF A BETTER AND
CANNABIS COMPANY CANDIDATES,
NOT NEW INDUSTRY TO BEGIN WITH
I WAS A CANNABIS COMPANY CARE
DURING A RECESSION. PATRICK.
>>YOU KNOW THAT'S A REALLY GOOD
QUESTION BECAUSE. BECAUSE IT'S
SO NEW. YOU KNOW THE LAST TIME
WE HAD A RECESSION. WE DIDN'T
HAVE CANAS BE CAN COMPANIES TO
DO IT. SO I
THINK THAT WHEN YOU LOOK AT
COMPANIES THAT ARE GOING TO
FARE WELL IN A FAIR WORK ALONE
OR SESSION.
UM I THINK YOU HAVE TO BE
WEARY. ANYTHING THAT
DISCRETIONARY INCOME AND
CERTAINLY RECREATIONAL
MARIJUANA WOULD BE THAT.
YOU KNOW I THINK THAT YOU KNOW
WHAT YOU'RE LOOKING FOR STRONG
INVESTMENTS IN THE STOCK MARKET
AND DURING THE RECESSION, YOU
LOOK AT UTILITIES WHICH YOU
KNOW
THOSE ARE VERY STABLE. BUT YOU
KNOW I WOULD NOT PUT A TON OF
MONEY HEAVILY INTO CANNABIS OR
RECREATIONAL PRODUCTS. WHEN
I'M LOOKING SPECIFICALLY AT A
RECESSION. BUT ALSO YOU KEEP IN
MIND WHEN I INVEST.
I DON'T LOVE WHAT'S GOING TO
HAPPEN A YEAR FROM NOW I LOOK
AT WHAT HAPPENS 5 OR 10 YEARS
DOWN THE ROAD AND I KNOW THAT
THIS INDUSTRY SPECIFICALLY IS
GOING TO BE FOUGHT.
>>PATRICK IT IS INTERESTING
BECAUSE HISTORICALLY DURING A
RECESSION. WE DO SEE TOBACCO
STOCKS SWITCH OUR DIVIDEND
PAYERS RIGHT THERE ACTUALLY
SOME OF THE BEST PERFORMERS AND
I THINK THE NOTION IS THAT
DESPITE A RECESSION, PEOPLE
STILL NEED AND STILL WANT THEIR
TOBACCO ITS I WONDER IF THE
SAME IT CAN BE THOUGHT ABOUT
SOME OF THESE CANDIDATES NAMES.
>>IT'S YOU KNOW AND THEN THAT'S
GOING TO BE INTERESTING TO SEE.
YOU KNOW I
THINK IT DEPENDS ON.
>>HOW YOU KNOW HOW PEOPLE
ARE LOOKING AT CANADA'S AS AN
ADDICTIVE TYPE OF PRODUCT.
OH YOU
KNOW WHEN YOU CERTAINLY LOOK AT
THE WHEN YOU LOOK AT CANADA AND
YOU LOOK AT THE INCREASE OF
PEOPLE
USING CANNABIS PRODUCTS AFTER
LEGALIZATION. THE NUMBER OF
PEOPLE USING IT ON A DAILY
BASIS HAS ONLY INCREASED ONE
PERCENT WHICH TELLS ME THAT
PEOPLE ARE WITH THE PEOPLE ARE
WILLING AND ABLE AT LEAST RIGHT
NOW TO TAKE AN LEAVE IT HAS
AS THEY CAN. SO AS LONG AS
CANNABIS ISN'T CONSIDERED TO BE
AN ADDICTIVE TYPE OF THING THEN