Investing

Canadian Small Cap Cannabis/Phychedelics

  • Last Updated:
  • Jul 28th, 2020 11:35 am
[OP]
Newbie
Jun 14, 2020
14 posts
2 upvotes
Toronto

Canadian Small Cap Cannabis/Phychedelics

It's not if, but when the Cannabis Sector will be riding a 2nd wave up.
Here's an interesting comparison of two small-cap cannabis companies listed in TSX. One is currently without revenue but the other one seems to be burning cash. Any ideas or suggestions which one to pick? Thanks!
Images
  • PWR_vs_AH.png
Last edited by thealpevin on Jul 8th, 2020 9:17 am, edited 1 time in total.
18 replies
Newbie
Jul 6, 2020
2 posts
I think Captiva is much better and more growth potential as it has a much lower cost and Mexico market.
Newbie
Jul 6, 2020
1 posts
what's the timeline you are expecting Captiva to generate positive cash flow? seems like they are running multiple projects at the same time...
[OP]
Newbie
Jun 14, 2020
14 posts
2 upvotes
Toronto
I spoke to one of their guys running the outdoor grow site, looks pretty promising as they're already started talking about monetizing right after the harvest season.
They're a licensed LP running the largest outdoor grow site in Canada, also they're fully licensed in Mexico and getting ready to sell Phychedelics in Mexico. Personally i am really into the Phychedelics space.

However Aleafia is also an outdoor producer and they have a great retail exposure (26 stores). The issue is their operation expenses seems to be high and concerns with the Emblem takeover which didn't go so well.
Newbie
Jul 7, 2020
3 posts
good comparison, pwr is definitely a better investment.
Newbie
Jul 7, 2020
3 posts
very good comparison, Pwr is definitely the better investment. Do you recommend to buy and hold for long term growth?
Newbie
Mar 9, 2002
31 posts
9 upvotes
Not sure if you're looking at any others but I like Valens. Extraction company with quite a few customers, plus they are profitable. Recently they expanded into the Australia market. Earnings is next week and they've recently dipped. Long term they seem to have lots of potential.
Newbie
Jul 6, 2020
2 posts
I just dig a little bit deeper. PWR properly has been undervalued a lot based on the status of its project. And this company does not have any financial debt.
[OP]
Newbie
Jun 14, 2020
14 posts
2 upvotes
Toronto
ScottyD wrote: Not sure if you're looking at any others but I like Valens. Extraction company with quite a few customers, plus they are profitable. Recently they expanded into the Australia market. Earnings is next week and they've recently dipped. Long term they seem to have lots of potential.
Thanks for letting me know about this one! This looks interesting because hardly any cannabis company is being profitable. I will do some research on Valens.
Deal Addict
User avatar
Aug 28, 2012
1832 posts
996 upvotes
Kanata, ON
LOL @ the POST COUNT for everyone on this thread... Certainly seems like a "one-sided" conversation going on here. Face With Tears Of Joy
[OP]
Newbie
Jun 14, 2020
14 posts
2 upvotes
Toronto
ScottyD wrote: Not sure if you're looking at any others but I like Valens. Extraction company with quite a few customers, plus they are profitable. Recently they expanded into the Australia market. Earnings is next week and they've recently dipped. Long term they seem to have lots of potential.
I looked into Valens. Indeed they're just been profitable which is impressive, despite the Cashflow from operations is still being negative.
Most of their products are tinctures related, usually these products requires big ads spending to get sales. When are they planning to expand to Australia market? isn't it still not legalized down there?
Newbie
Mar 9, 2002
31 posts
9 upvotes
I believe they are producing these products for other companies who will market and sell. To me seems like should be easy to calculate the cost to produce and add a bit of profit.

Looks like Australia is medical, here is a snippet

Landmark agreement provides The Valens Company with strategic access to the second largest cannabis market outside of North America.

Under the terms of the five-year agreement, The Valens Company becomes a preferred supplier to Cannvalate, a leading authority in the Australian medical cannabis community with the largest cannabis distribution platform in the country.


I feel like lots of upside but who knows. Good luck with whatever investment you choose.





I looked into Valens. Indeed they're just been profitable which is impressive, despite the Cashflow from operations is still being negative.
Most of their products are tinctures related, usually these products requires big ads spending to get sales. When are they planning to expand to Australia market? isn't it still not legalized down there?[/quote]
[OP]
Newbie
Jun 14, 2020
14 posts
2 upvotes
Toronto
ScottyD wrote: I believe they are producing these products for other companies who will market and sell. To me seems like should be easy to calculate the cost to produce and add a bit of profit.

Looks like Australia is medical, here is a snippet

Landmark agreement provides The Valens Company with strategic access to the second largest cannabis market outside of North America.

Under the terms of the five-year agreement, The Valens Company becomes a preferred supplier to Cannvalate, a leading authority in the Australian medical cannabis community with the largest cannabis distribution platform in the country.


I feel like lots of upside but who knows. Good luck with whatever investment you choose.





I looked into Valens. Indeed they're just been profitable which is impressive, despite the Cashflow from operations is still being negative.
Most of their products are tinctures related, usually these products requires big ads spending to get sales. When are they planning to expand to Australia market? isn't it still not legalized down there?
[/quote]

The Earning Call was not bad, thanks for sharing! I really think the cannabis and phychedelic sector will be VERY worthwhile looking after at this point!
Newbie
Jul 7, 2020
3 posts
does anyone have any good estimates about the legalization timeline for psychedelics?
Member
Dec 2, 2014
442 posts
162 upvotes
London, ON
jc1586 wrote: does anyone have any good estimates about the legalization timeline for psychedelics?
There is a groundswell of activist activity to decriminalize psychedelics in Canada right now. It's easy to see it becoming legalized in the next 3-4 years in clinical settings, either for research or medicinal purposes, as the mounting evidence pointing to it's positive benefits, or outcomes, as treatment for certain mental illnesses is becoming irrefutable. You're likely looking 10-15 years out for recreational use though IMO.

Top