Pot Prognostications

Written by Nick Hodge
Posted January 23, 2019

Another one was announced yesterday.

This time it’s Aphria (TSX: APHA)(NYSE: APHA). The takeover bid came last night after market close. The unsolicited bid by Green Growth Brands (CSE: GGB) values Aphria at C$2.3 billion.

Aphria stock, despite a biting short report that came out late last year, is up more than 33% so far this year.Aphria January 2019 Stock ChartJimmy’s readers are up a bit more than that, having gotten in earlier at a lower price.

The massive dealflow in cannabis is unfolding just as we’ve been telling you it would. (Jimmy’s list of buyout targets is available here.)

CannaDeals CannAbound

Media pot puns are fun, but have you ever cashed out of successful pot deal after successful pot deal?

That’s exactly what our readers have been doing for months.

So I think it’s a bit funny when the media comes out now and acts all insightful.

The Globe and Mail reported yesterday that the pace of mergers and acquisitions in the weed industry is expected to intensify.

Thanks for the heads up, guys. Where were you several deals and billions of dollars ago?

The Globe's Alexandra Posadzki and Jeffrey Jones write that the sector is turning its attention to consolidation, as pot producers search for competitive advantages and the efficiencies that come with scale.

Mind you, Aurora Cannabis (TSX: ACB)(NYSE: ACB) has already taken out Medreleaf for C$3.2 billion and CanniMed for C$838 million. Aphria has taken out Nuuvera for C$425 million.

But that’s sort of the difference between mainstream media and newsletters, right? They’re reactive, we’re proactive.

Any monkey can say mergers are about to heat up after billions in mergers have been done.

Who was giving you a list of those that would be bought out before it happened?

Who’s next?

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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