Cannabis

Cannabis industry shops for a suit and tie

16 Nov 2018

Money is pouring into weed as valuations rise and legal barriers fall – nudged further by recent U.S. election results. Companies like Canopy, Aurora and MedMen are starting to take on a veneer of acceptability. That doesn’t make them good investments, but it’s progress.

Constellation investors aren’t buying weed yet

26 Oct 2018

The $40 bln drinks company may sell some wine brands to focus on buzzier businesses. Its $4 bln investment in cannabis vendor Canopy Growth hasn’t done anything for shares, though. Pot and beer may eventually be a potent combination, but shareholders regard it as a pipe dream.

$100 bln weed company is still in the pipe

21 Sep 2018

Cannabis producer Tilray’s shares have risen and fallen at a rate that makes virtual currency bitcoin look lethargic. Its CEO claims it could have a 12-digit valuation. He’s half right. A producer of that size is likely one day, but assuming it will be Tilray is foolish.

Cannabis stocks have whiff of 2006

14 Sep 2018

A weed ETF has doubled in price in just over a year, while a Canadian producer has been targeted by an activist because its stock “only” trades at eight times EBITDA. Demand is real and legalization is coming. But online gaming’s sharp correction 12 years ago offers a warning.

Race is on to be the Netflix of weed

15 Aug 2018

Constellation Brands’ $4 bln investment in cannabis producer Canopy Growth could kick off a feeding frenzy, akin to that over media content. Beer isn’t the only industry with turf to defend or skills applicable to marijuana. Valuations could get even higher than the customers.

High hopes accompany Wall Street’s first weed IPO

19 Jul 2018

Canadian cannabis producer Tilray's stock opened a third above its already raised IPO price, nudging its value above $2.1 bln. That's hefty, but still below bigger Canadian peers Aurora and Canopy Growth. Investors seem undeterred by industry risk - and a dual-class share structure.

Weed wafts gently into investors’ portfolios

6 Jul 2018

Investors are warming to the devil’s lettuce. The action is mostly in Canada, which has over $25 bln of listed cannabis stocks, and rising volumes of M&A. But the U.S. is positioned to provide the metaphorical pickaxes, and big consumer brands will be watching for legal changes.

Weed giants share a deserved peace pipe

24 Jan 2018

Canada’s Aurora and rival CanniMed have agreed a friendly merger after months of acrimony. CanniMed’s shareholders only get a small stake in the $6.2 bln combination, but a big uplift in value. The world’s biggest listed weedmaker is now well positioned for regulatory changes.

Bankers’ rule-change wish list starts in the weeds

24 Nov 2017

Executives have plenty of regulations they want a more industry-friendly Fed to overhaul. But for many the top target is an obscure supervisory letter that has turned often minor infractions into roadblocks for everything from new branches to M&A. It’s unnecessary red tape.

Thiel bets regulators just blowing smoke on weed

12 Jan 2015

The PayPal founder’s investment in a marijuana business could run up against U.S. anti-drug laws. Like sharing-economy upstarts Airbnb and Uber, though, the billionaire wagers the legal haze will clear. With banks unable to take that risk, the reward could be sky-high returns.

American experimentation with weed worth watching

8 Jul 2014

Colorado inhaled about $11 mln in taxes during the first four months of retail marijuana sales. In Washington state, red tape has created bottlenecks as pot goes legal. Other governments considering legalization can learn best, and worst, practices from these experiences.

Uruguay’s weed spoils could get even higher

12 Dec 2013

The country is first to legalize marijuana trade, with production from co-ops, sales to locals only and prices fixed. Relaxing such restrictions, however, could really spark up the economy. The Dutch did well from cannabis tourism, but agribusiness could be the winner in Uruguay.

If only weed could inspire fiscal joint action

14 Nov 2012

Ideological foes Barney Frank and Ron Paul have passed the peace pipe for marijuana, together urging the feds to stay mellow about new decriminalization votes. Such kinship would keep a fiscal deal from going up in smoke. But anyone who sees similar common ground must be high.

Seaweed boom shows China’s inflation challenge

25 Nov 2010

After garlic and green beans, seaweed is now the latest food hit by Chinese inflation. Natural factors and economic development have played a role. But too much money is another culprit. A stranger symbol of the boom is hard to find. The pressure for more tightening is mounting.

California’s weed revenue may go up in smoke

26 Oct 2010

The state reckons a ballot measure allowing local authorities to decriminalize marijuana sales could harvest more than $1 bln. Stoners and bondholders are stoked on the idea. But even if it passes, cloudy language and feds' opposition make the plan, as designed, look halfbaked.