AYRWF is a Hedgeye Best Idea LONG
We will be hosting a conversation with Jon Sandelman, the CEO of Ayr Strategies, on Wednesday, January 6th, at 2 PM ET.
We are adding CGC and TRSSF to the Cannabis Best Idealist as a LONG
A few months ago, we moved CGC to the long bias list on the theory that the new management is cleaning the house and reshaping the company assets to be more profitable. Also, we see better sales trends in Canada. Canadian adult-use retail sales grew to a record C$270 million in October with sequential growth at 5.1%, a slight uptick from September's slowed growth of 2.1% MoM. October sales represent an increase of 109.4% YoY, C$2.06 billion in YTD sales, and annualized revenues of C$3.24 billion. Canada's issues are well known as Canadian L.P.s are still grappling with the country's oversupply issue, which has led to inventory write-downs, impairment charges, and the paring down cultivation facilities. For CGC, we believe that most of these issues are in the past, and the company can now focus on profitability.
Driving the change today is what we view as a better path toward how the company will access the U.S. market post-legalization. In a deal announced 12/21/20 with Canopy Rivers, CGC is increasing its stake in TRSSF. This makes TRSSF the company preferred vehicle to participate in the U.S. legalization. How the company deals with the Acreage assets will be dealt with at a later date. This makes TRSSF the best ideas as long as the market sees impressive growth in 2021 and realizes that CGC will likely own the company one day!
More details to come!
GA SENATE RACE, MJ AND TIKTOK
Democratic Senate candidate Jon Ossoff isn't taking the youth vote for granted in his runoff bid, and one strategy he's deploying is using the social media app TikTok to tout his support for marijuana legalization. With two weeks before the vote in his race and one other Georgia Senate runoff election, which together will decide which party ultimately controls the chamber, Ossoff's campaign has taken to the app to generate enthusiasm. The latest videos, published on Tuesday, is at least reassuring for cannabis reform advocates. It shows that the candidate recognizes that marijuana legalization is widespread among young people. He says their vote in Georgia will determine whether the policy change is enacted in the next Congress.
