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A Preliminary Examination Of N=35 Canadian Marijuana Stocks... Eh?

I will devote most of the content to the n=19 Canadian firms trading on U.S. exchanges. The N=35 represents the "population" or "universe," and all are included for completeness.

Dilution Constitutes a Fundamentals-Based Evaluation Methodology

It is very difficult to examine traditional fundamentals for marijuana firms, as they tend to be horrible. Many have negative working capital positions and are facing insolvency.

I examine the convertibles, also a fundamental measure, for "toxicity" and evidence of "death spiral" financing. Effectively, I want a deal that is comparable to that achieved by "insiders" or "related parties," and do not want them to profit from or be faced with an economic incentive to sell share sales below my cost or entry point. If their goals are aligned with mine, we can all profit.

Moves from Mining, Minerals or Other Commodities to Marijuana

I am reluctant to buy stock in a firm that failed… Read More …