Matt Badiali is no stranger to investments regarding natural resources. He’s the PhD Geologist that made freedom checks and MLP’s popular among investors. More recently he’s noted that the cannabis industry will be for Canada what the tech industry was for the North American continent. Matt Badiali is the guy always checking out natural resource mines for investors and then applying Badiali’s scientific knowledge to his capital gain portfolio, isn’t he? If he is this, what could the guy possibly know about small chip cannabis entities existing in the great white north? Well, the answer lies in a recent trend that was started by a Canadian rock band of all sources!
The trend is a situation in which failing mining entities become pot growing ones. It’s a simple concept and the rock band “The Tragically Hip” started it when they began supporting a failing mining entity as it became a grower. The company’s name was New Strike, and as a mining entity, they sold for pennies on each dollar. As a pot entity, they climbed to several bucks before flattening out at .50 to each dollar. Not a bad fall off. The ending price was still much higher than the entity’s cost as a mining outfit.
Since the New Strike situation, a number of failing mailing companies have made the switch. After all, if this is to be our northern neighbor’s version of the tech boom, who wouldn’t want in on it? What we have here are new options to choose from. Americans still can’t buy Candian stock, however.
Eager Americans will have to get their beaks wet through indirect ETF action. Several ETF’s will allow North American investors to own a little piece of the great white north’s green action. Still, with the type of growth that Matt Badiali is forecasting, this ETF action could be quite attractive to an investor.
That ETF might not be everything that an investor will hope for, however. Tobacco and alcohol competitors are likely to lower the cost of cannabis acquisition. A lower cost of the product will result in growth that levels off (like the entity growth related to the rock band). As Matt Badiali points out, there are still gains to be had.
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