November 6, 2019
When cannabis companies first appeared on Canadian public markets, it was all about cultivation, the bigger the land package, the higher the market cap. Didn't matter that the market hadn't developed yet, it didn't matter that most of the projections were off-your-rocker optimistic and it most definitely didn't matter if you didn't turn a profit. Shell companies that once lay dormant found purpose and promised the biggest and best crops money could buy when and if they got their license. Market caps climbed into the billions based on millions in revenue, but no one considered fundamentals in legal cannabis.
While the rest of the market loses steam and the overvaluing comes back into line with revenues, many retail investors are left holding the bag due to a laundry list of bad business decisions made by people who consistently see value where there isn't. Brayden Sutton isn't one of those people. Sutton made a name for himself with Supreme Cannabis before moving on to Nevada to found what would become 1933 Industries (TGIF.C). Instead of propelling the company forward with debt-fueled growth over top of a blood red bottom line like everybody else in the sector, 1933 focused on fundamentals in legal cannabis, building a business organically that is steadily heading toward profitability.
1933 Industries wasn't celebrated for this dovish approach and in fact was punished on the boards for being responsible stewards of their shareholders money. Canopy Growth's (WEED.T) and Aurora Cannabis' (ACB.T) financials are embarrassing to say the least. They show little or none of the value promised in the heady days of 2017 and still company execs from companies like MedMen (MMEN.C) receive massive bonuses. 1933 was dissed for keeping its nose clean and pressed against the grindstone but now it seems to have the value the big guys missed striving for their billion-dollar market cap. Looks like fundamentals in legal cannabis aren't to be ignored. Equity.Guru's own Chris Parry spoke with 1933 Industries CEO, Chris Rebentisch, to get a good look at the company, its pursuits and what investors can expect in the new year. Listen in!
Full disclosure: 1933 Industries is an Equity.Guru marketing client
October 28, 2019
Rare earth metals were little known before 1960, but in the sixty years since, it has become the foundation for our technologically driven society. You can find rare earth metals in nearly everything electronic from rechargeable batteries to missile guidance systems. There are no substitutes and if there is any supply chain squeezes, the manufacturing of all those convenient and necessary devices that make our life modern, would promptly grind to a halt.
Currently China holds all the cards with approximately 80% of the world's rare earth elements processed in the country. Even without trade spats, China's dominance of the rare earth metals market is a little disconcerting. As such, governments in both Canada and the United States are actively seeking out safer sources. Rare earth metals is already a big market at USD$4.6 billion globally and its only going to get bigger as we switch to a world without fossil fuel. In fact, it is expected that rare earth demand will skyrocket 655% when EVs take over our roads.
Rare earth metals for the most part have had a good year with prices popping anywhere between 20 and 90%. Therefore it is no surprise that Canadian junior explorers are lining up to take advantage of the critical nature of these critical elements, but some juniors, like Vancouver-based Defense Metals (DEFN.V) are raising eyebrows with some impressive chemistry that places its flagship Wicheeda project on the global map for potential rare earth metal monsters. Defense Metals is well ahead of its option obligations and is continuing to propel itself forward with some alacrity. When assay results come back in November from this summer's drill campaign, Defense Metals and its investors may find themselves at the beginning of a financially joyful journey.
Equity.Guru's Gaalen Engen, spoke with Defense Metals CEO and president, Craig Taylor, to get a quick look at the company, the Wicheeda property and its chemistry as well as what investors can look forward to over the next 12 months. Listen in!
October 25, 2019
Uranium supply is shrinking in the face of increasing demand. This inverse relationship could see pricing spike for the glowing commodity within the next year, making an opportunity for both majors and juniors alike to find the next McArthur River deposit and become a member of the new generation of uranium kings.
One of the junior explorers taking advantage of this space as well as this place, is Azincourt Energy (AAZ.V) with its flagship East Preston project in the prolific Athabasca basin in Saskatchewan. Not only is this one of the largest land holdings in the district, a minimum of drilling late last year showed positive results. Now the company is poised to commence a 2000m fully-funded drill program with institutional money and support in the form of 5-year warrants.
As we continue to shift from fossil fuels for cleaner forms of energy generation, nuclear power figures prominently as a integral part in the make up of our 21st century global power grid.
Equity.Guru's own, Gaalen Engen, spoke with Azincourt Energy CEO, Alex Klenman, to get a better view of the sector, the company, it's East Preston project and what investors can expect over the next 12 months. Is this the next Rio Tinto (RIO.ASX) in the making? Tune in and find out!
October 21, 2019
If you are trying to put together a legal weed deal in Canada right now, it's too late, you've missed the boat. However, international markets, such as the regional markets in South America are beginning to open their doors to both medical and recreational marijuana.
They may not be California, but these are significant regions with enough sustainable potential for companies, like soon-to-be-public CannaVerde Pharma, a Canadian cannabis venture based out of Toronto, to carve themselves a health slice of this emerging marketplace.
Equity.Guru's own Ethan Reyes spoke with Cannaverde Pharma CEO, Michael Nistorescu, to get a better view of the company, it's portfolio, the Colombian legal cannabis market and what investors can expect over the next 12 months.
October 8, 2019
Why build a home when you can print it? That's the question 3D Sustainable Developments aims to answer with homes made via their 3D printing technology.
Housing has always been an issue in terms of cost and longevity. With this rapidly-evolving technology, everyone from low-income tenants to those needing disaster relief can have a ready-made home in roughly 24 hours.
Equity Guru's own Guy Bennett sat down with the company's CEO, Commitment Israel, to discuss 3D Sustainable Developments' future outlook and the exciting, new future of home ownership.
September 26, 2019
Psilocybin and other psychedelics are forcing their way out of prohibition as potentially viable treatments for not only depression and anxiety but also alzheimer's and other neurodegenerative diseases plaguing millions in North America alone. In the end, psilocybin solutions address a $300 billion dollar psychotherapy and wellness global market.
Equity Guru's own Ethan Reyes spoke with Nikita Alexandrov, CTO of ThinkMyco to get a good look at the company, the sector and what lies ahead for investors. Listen in!
September 21, 2019
In 2014, Andrea Dobbs walked into a Vancouver cannabis dispensary and tried to talk to a 21-year-old male “budtender” about treating her peri-menopausal symptoms. The conversation was not illuminating. She saw a business opportunity. A year later, Dobbs opened a retail cannabis store in Kitsilano, catering to people…like her.
The Village Bloomery offered “a boutique range of medical cannabis products, assisting adults who are looking for a natural alternative to pharmaceutical pain relief. 458 Google reviewers give the store a perfect 5.0 rating.
Just last month, Dobbs received an ultra-rare green light to sell recreational cannabis. It turned out to be a game changer – but not in the way you might think.
Dobbs has a history with – and loyalty to – small artisanal growers. This has ramifications for companies like GTEC Holdings (GTEC.C), Experion Holdings (EXP.V) and Pasha Brands (CRFT.C).
In this podcast, Dobbs spoke with Equity.Guru’s Guy Bennett about the winding road to rec weed and the system that allows “government retail to undercut private retail by 50%.”
September 13, 2019
I once heard that, when it comes to a garden-variety executive at public companies, protecting shareholder value was the last thing brought up at meetings, if it was brought up at all. Jay Garnett, CEO of Experion Holdings (EXP.V) doesn't follow that mold.
In August, Garnett wrote a letter to shareholders outlining the company's strengths, explaining the reasoning behind recent decisions and plotting the path forward. He says he plans on continuing this tradition going forward as a way of letting shareholders know they're never far from his mind.
Tune in to the latest episode of Equity.Guru's A Closer Look to hear his views on the ongoing sector-wide slump, the importance of measured growth and amalgamation in 2020.
September 11, 2019
Esports isn't coming, it's already here. With players making millions playing their favorite game, the constant jabbering of parents telling their kids to shut off the video game and go outside, now seems counterproductive to a successful life.
New Wave Esports is an acquisition, investment, and technology development company that provides capital and support services to esports organizations, teams, leagues, event platforms, tools, and technology innovators. The company has a collection of investments destined to grow and innovate the industry, and is working toward laying down the foundation for the next generation of Esports champions and leagues.
Equity.Guru's own Ethan Reyes spoke with Dan Mitre, CEO and managing partner of New Wave, to get a good look at the company, it's portfolio and its prospects in professional gaming. Listen in!
August 9, 2019
Copper is set to move, the difference between supply and demand is starting to widen once more. As it is the key element in the transition to an electrified future, demand is expected to grow exponentially.
It may not be a copper market right now, but companies like CopperBank Resources (CBK.V) are positioning themselves to be call options on a mineral that is destined to explode on the markets.
Equity.Guru's own Guy Bennett spoke with CopperBank CEO and director, Gianni Kovacevic, to get a better look at the company, its portfolio and the potential it holds for investors.