It’s been a painful month in cannabis stocks and I am fully invested at this point but I managed to add one more big slog MSOS under $4 and TRLV under $8 this morning. My conviction is that my generation of GenX and my younger millennial friends have been ramping up cannabis use in the last few years and slowing down while alcohol use. I see it all around me. The reschedule is icing on top if that sticks. The question is does this translate into higher stock prices eventually?
Dougie Kass:
it is no surprise (though it is painful short term) that i view the weakness as opportunity.
i expect rescheduling of adult recreational use.
i expect resolution of past tax liabilities (utp)
the debt cliff has been addressed on favorable terms (rates, maturity).
uplistings have begun
custodian issues are being resolved
buy backs have commenced
core business has stabilized
no institutional ownership (yet)
and retail has been decimated (unable to sustain stock prices)
i add daily to the investment – with upside reward massively higher than risk (imho)
Doug Kass is a world-renowned hedge fund manager with decades of experience and success navigating through some of the most turbulent periods in market history. He is known for his time-tested analytical skills and ability to look past the current noise and herd mentality.
On TheStreet Pro, Kass provides frequent market commentary and investing ideas for active investors throughout each trading day in Doug’s Daily Diary. He also serves as president of Seabreeze Partners Management Inc. Previously, he served as a senior manager at Omega Advisors, a $6 billion investment partnership. He co-authored a book with Ralph Nader and the Center for the Study of Responsive Law called “Citibank: The Ralph Nader Report” and can be found as a guest host on CNBC's "Squawk Box."
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