TIM COHEN: Investors go nuts as they eye new stream of commercial marijuana revenue
There is an old investing adage that if you are at a party and someone tells you about a fabulous new stock that is growing like crazy, it’s too late. You have officially missed the boat. If you try to board now, you will probably lose money. So, I was at a party recently where I met a group of people among whom are some serious investors, and they couldn’t stop talking about Canadian marijuana companies. And I thought to myself ‘I really should invest in this’. Canada became the first Group of Seven country to not only decriminalise marijuana but also to allow the commercial sale of pot for recreational use in 2017. Since then, things have gone nuts. A host of listed companies on the Toronto Stock Exchange plan in one way or another to try to take advantage of this new revenue stream. The value of these companies has exploded. The value of the top 10 companies is now around $23bn, or R337bn, a bit bigger than Standard Bank. The market leader is Canopy Growth, which has a market cap...
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