BNN - Friday, May 24, 2024 - 03:00 p.m. (ET) - Segment #8

Oh Canada!! their time has come Argentina have done it! One more Messi moment! Beyond glorious! Messi magic once again This is it...the stage is set That's what they came for!! And it is spectacular!! She'll never bend the knee. The greens are coming for you, Rhaenyra, and for your children. (Dramatic music) Otto: It is your great privilege to witness this, a new day for our realm! (Cheering) (Roar) Rhaenyra: We don't choose our destiny. It chooses us. Closed captioning of this bnn Bloomberg Program is brought to you by Scotia iTRADE. Everything you need to direct invest. Scotia iTRADE. It's every investor's dream. Today in hot picks, we talked about the cannabis sector, which recently has been outperforming the s&p 500 particularly those us names. Now, of course, they are a shell of their former selves, but we talked about the interests that investors have been having in the sector, especially as regulations start to loosen south of the border. Federico gomez, director of institutional research in life sciences. Any to be capital joined us with his stick. >> Investors are definitely more interesting. The sector we saw last week that the doj has initiated the rulemaking process to reschedule cannabis from schedule one to schedule 3 drug in the u.s.. And that would be huge for the sector. So investors are expecting that could happen before the election this year. The main difference to many impacted the sector would be that, you know, and the multi state operators in the u.s., they would be able to pay taxes like the regular business as opposed pay taxes at the girls profit level like they are now. So it would be huge for cash flows and earnings in the second. And that's spiked interest for investors is their hesitancy to look at the sector. Given so many were burned over that huge rally that we saw. >> And we're still well off those levels and our investors scrutinizing these companies with greater intensity. They are and it's, it's a show me story in the sector, given, you know, the the past, the track record that we've seen. So investors a little bit cautious, but you have these cattle is coming up in the west. Also legalization in germany that happened recently this year. So all of those catalyst got investor little bit more excited, but they still are cautioned. It's a show me story. So let's take a look at some of the ones that you do like to in the U.S. for the first one send and you this the fastest growing U.S. cannabis company. It is in our coverage. So they drew a 30% a year over year revenue last year, guided for double-digit growth this year. It is a real story. It's one of their, the fastest growing a U.S. cannabis names. And you know, I think what's interesting is that they have exposure to ohio. Ohio is a state that pass a recently legalized the recreational cannabis with sales expected to starting the 2nd half of the year. And so that could, you know, keep the girl story alive for a saint >> And profitable on earnings per share basis isn't moving towards profitability can and be profitable. It is movie can be processing the big issue this cannabis companies in the west, as I mentioned, is a heavy tax burden to have to pay. >> You know, we should exclude at us and will be free cash flow positive in their earnings positive as rana was at a similar story. It is a larger company. One of the leading ms you know, exposure to all the key catalysts states and the west, not only ohio, as I mentioned, but also florida of around us. One of the top 5 players in florida, florida has a vote coming in to legalize recreational cannabis front also has exposure pennsylvania, which is another state of my ally soon and very importantly, toronto is free cash flow positive, even while paying that we the tax burden. >> Now you also cover at do cover I can virtually so it's interesting, huge do like truly for florida as well, because that's a big player. In in florida or you leaning more towards I like leave us. Well, I thing trulieve has huge upside in florida. They are the leaders in that market, you know, over about 40% volume market share. So I think would definitely be the main beneficiary of florida legalization. Now 3rd pick is a canadian pick. So it's got sort of different things going for it. What do you like about

high tide to smaller players, so high tides, the largest, a private cannabis retailer in canada over 170 stores. So they have a long-term target off reaching 300 U.S. stores. So you know, they could roughly double the size of the business in canada are also we like the long runway for growth elect execution so far. And the fact that the company is free cash flow positive so they grow profitably. Do we like the stores, we like the storm you know, there's this thinking that there's too many. Yes, way too many cannabis stores definitely a challenging environment for retailers, but high tide has been successful in environment. They have a discount club model. So one of the lowest prices all around and the retail sector is consolidating. And so that's a big benefit far for high tide. So that approach, would you say that's their secret sauce? Yes. Alright. And you see some big upside see the stock tumbling here. In fact, your $6 price target comes to fruition. Yeah, that huge upside. I think they're going to keep free cash flow per share. The company is also looking into germany and now the we to to move along in terms of legalization. They have the pillar to maybe that's going to happen next year. And so that could be also catalyst for the stock and that no production themselves, no only retail, only raytown. Okay in jenin. Do we have a sense of like how well they're doing per square foot to they disclose those members. Not really, but we know sales per store. And what they do is about 2 to 3 times higher than the average sales per store or for taylor's in ontario or alberta. >> In the after hours trade, we are seeing shares of gamestop hop, which is saying something considering it's a friday before a long weekend, that this is the after hours move that we're seeing in shares of gamestop. After the close. The company announcing that in many ways it cash in on the meme stock rally early last week, completing an at that market equity offering program that netted them 933 million dollars. Through a share sale. So I guess we wide stock tumbled after at its pop because of his out in the market. Selling shares. And again, it raised nearly a billion dollars in a stock sale. Capitalizing on that quick, quick and hot today rally that happened not this week, but the meaning as a last gamestop shares on a friday before long weekend. We're seeing a big clap. We've got andy bell on the desk this generation and I guess they don't mind trading friday afternoon. That's interesting with these main stocks as well, it's almost investing as its purest because that's I think it's gambling. I don't think. That's kind of a swat regular stock investing is, I think multiple. Yeah. That's the says you do discounted cash to know you you couillard numbers to explain why a stock goes up or I think it's a mysterious and that's just psychology of careful. Andy. This is that's for yeah. >> Yeah, but you know, the stock market, we dress it up. I think the entire thing is speculation okay, >> I was just going to say that this is probably one of those stocks are going here on tiktok allied and I know that's an tiktok guy. >> I'm addiction to the videos working 3, 0, yeah, they got they got the hooks into my brain. I'm looking at a piece of hubspot dot com. Hubspot is seller of marketing software cause some to be a go. Talking about massive investment by marketers now short form video, the low 60 seconds because they're finding it works. Human beings are wired to loves these part of it our relentless leasing attention spots. She spite she cites work by gloria marcus and psychologists just wrote a book called attention span a ground waking way to restore balance, happiness and productivity. She's been involved a psychologist and research over decades. Some parents they've been doing things like getting people to work on that document and then see how long it takes them to flick to their email and then flicked back. Oh jeez. Fails. Used to in 2004, the average attention span was 2 and a half minutes to okay by 2012 are dropped to 75 seconds and currently are in the last 5, 6 years. We found it average about 47 seconds. Me. We're just getting better at doing many things at once. Possibly, although they do say that multitasking is it's not a productive thing. You should finish one task and move on to another. Well, course, any parent yeah, right. >> Yeah, I mean, I do agree these things are toxic for

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