Thread by @todd_harrison

THREAD: The FAANG-ification of 🇺🇸 #cannabis

There's blood on the streets in #cannabis-land, the latest twist in what's been a turvy year. I could choose from a lot of charts here but chose a global lens and zoomed out to paint the complete picture. Talk about vol. #woof 👇

2/ A few things jump out to me on that chart. The first is the bubble and bust; boy I've seen a few of those in my day. Scary as all hell, all sorts of wealth destruction; never fun. But I also notice the uptrend, which remains in tact. That's sorta a big deal given the vol.

3/ Context matters too. #Cannabis is mind-numbingly a schedule I narcotic-- ILLEGAL. So the growth driving that uptrend has occurred *despite* the best efforts of governments / ruling bodies. Not only is that changing but it will be driven by SCIENCE / EFFICACY / WELLNESS...

4/ But I digress; two opportunity sets:

1. efficacy driven solutions / biotech. #ECS (regulates neurotransmissions / promotes homeostasis) discovered in '90; cannabinoids in #cannabis identical in action to #endocannabinoids our body naturally produces. 💥

Follow the 🔬

5/

2. Beverages, nutraceuticals, consumer packaged goods (CPG). This will be a HUGE tail that uses #cannabis and #hemp as *ingredients.* W time / education consumers will learn that ~90% of #cannabinoids won't get U high + they all have unique therapeutic values. #wellness

6/ How do we articulate this POV in the marketplace? Carefully.

And it's made more difficult for a litany of reasons not the least of them are

1. retail holders are emotional af
2. valuations are a dart-throwing exercise until revs come online.

But TRUST ME. They are 💰

7/ There are a LOT of stocks out there; 600-odd at last count. And just like dot.com, MySpace, Friendster and Facebook were really cool at first but only one really made a name for itself (and then some). Point is, there will be toe-tags.

8/ But there will also be winners and that's what we hope to find here. We look at mgmt bc ultimately, ur betting on the jockey. We look for footprint / branded end-products (where the margins are). And we look toward regions like Florida given 3.5X nat'l Rx avg / elderly pop.

9/ Some names in the EARLY running in no particular order:

@ianthuscapital
@AcreageCannabis
@Curaleaf_Inc
@GTIGrows
@HarvestofAZ
@LibertyHSInc
@Trulieve
@cresco
@ColumbiaCare
@cansortium
#4front

@1933Industries @OriginHouse_OH also ++ / not MSO's

/positions

10/ A few tag-along thots:

🇨🇦 will use their stocks as currency, make *accretive* 🇺🇸 deals / become instant NA players. FACT. They're already making googly-👀 at each other.

And whatever they don't buy, @Vanguard_Group et al will. FACT. Institutions will chase growth.

11/ Also, and sadly, when many smaller / mid-tier cultivators FINALLY get the kinks out and achieve scale, they may find that a large part of their market is migrating to bio-synthetics given the time / money saved.

Well, let me rephrase that: they WILL come to find that.

12/ Should also say that while we have inklings on the timing of banking reform, outright decrim / kicking this to the States where it belongs is A. The Holy Grail and B. elusive to time. But 🇺🇸 is just a portion of an overall portfolio mix that for us, includes 🇨🇦🇦🇺🇬🇧🇮🇱🇲🇽🔬.

13/ Just remember, humanity had a 30,000 yr relationship w #cannabis until the 🇺🇸 gov't demonized / weaponized God's medicine as an immigration weapon.

TRUE STORY. And all a matter of PUBLIC RECORD.

All U gotta do is 👀

/end

@CB1Cap

One more thing:

US banks / BD's *will* roll out coverage of #cannabis #hemp; in fact, there's already a mad scramble to better understand the space. Why? Clients are demanding it and if there's 💰 to be made, Wall Street is Johnny on the spot.

Thank you and Happy 🦃!