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Equity Investor, Finance Writer
High Tide's lead in Canadian cannabis retail is widening toward a position competitors can hardly catch, yet it trades at about 5x EV/EBITDA. 23% of Canadian consumers now say Canna Cabana is the retailer they shop most often, more than double the next competitor's 11%. Its loyalty and discount model concentrates frequent users, so rivals must overcome both physical scale and an entrenched customer base, and High Tide is using its Canadian strength to grow internationally. x.com
Cronos Group is one of the easiest longs in the market as higher-margin Israel and Germany sales lift gross profit without excise taxes. Q2 revenue rose 58% to $53M and adjusted EBITDA to $13.1M from $1.7M; gross profit nearly doubled. Spinach is Canada's #2 cannabis brand and #1 in edibles and vapes. CanAdelaar adds a leading Dutch adult-use pilot position at ~1.4x annualized revenue. Q2's $827M in cash, investments and deposits against $62M in liabilities and buybacks support per-share upside. … Show more
Dollarama is too richly valued to own despite its dominance in Canada and decades of solid execution, even near a 52-week low and after Stifel's upgrade to buy. It makes a competitive business work by offering unbelievable deals versus other stores and Amazon. x.com x.com x.com x.com
Cannabis stocks offer an excellent entry point after a procedural pause in the DEA rescheduling hearing triggered near-panic selling. The industry has never been closer to rescheduling and resolving custody and uplisting issues, and it recently refinanced its debt on excellent rate and duration terms. The pause until October 13 may delay rescheduling somewhat but is unlikely to derail it, and institutional investors should begin entering over the rest of the year. x.com
British American Tobacco carries cannabis optionality that few big companies admit to, and Big Tobacco will lean into cannabis hard rather than pull back. BAT describes a "foothold in the cannabis space" that is "several years away from being a meaningful contributor". @UseThouBrain, in the post being answered, backs Organigram on the view that BAT's idea of meaningful means billions, backed by patent-pending non-combustible IP; that is a different bet, far down the field, but not a bad one. … Show more
Glass House Brands is falling apart, down 66% since June, and its business will stay tough until regulation changes. x.com
