A Smoking Multibagger in the Cannabis Industry? - Stock Pitch #11
I‘ve spent the last weeks mostly researching companies in two sectors: cannabis and online education. Both are beaten-down industries, good places to look for bargains.
Today, I want to show you the best company I found in the cannabis market. Two or three showed good execution compared to the vast majority of the sector, but this one was outstanding.
Next week, I‘ll pitch two companies from the educational sector, either in one article or in two separate ones. We‘ll see.
Despite both industries being punished by investors, there are huge differences in their long-term outlooks, or better said, the outlook for their incumbents. While both markets are expected to grow quite significantly in the future, the online education market is much more likely to be disrupted, and current market leaders are already losing share at an increasing pace due to AI applications like ChatGPT.
In the cannabis market, I consider it more likely that some of the established companies will also be the big winners of the future growth in the industry. Up until then, however, there will be many bankruptcies and business failures along the way.
That’s why I focused my research on companies that execute well and focus on fundamentals and cash flows instead of “growth at all costs.” Today’s company did that very well.
But that‘s enough for the intro. Let's get to the pitch! (By the way: The next free-to-read Investment Post will be published on Friday!)