First Eastern Investments Limited, a private equity and wealth management firm, is betting big on the future of Marijuana Stocks.
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First Eastern Investments Limited www.investmentsfirst.com. A private equity and wealth management firm, is betting big on the future of Marijuana Stocks.
Chief executive Victor Chu said Legal sales of cannabis are growing at a better-than-20% annual rate.
Nearly 80% of the world’s legal pot sales this year will be in the U.S
“ We cannot help but notice a striking level of disparity, when comparing the major Canadian companies to the largest American multistate operators.”, said Chu.
The market capitalizations of Canada’s big five producers—Canopy, Tilray, Aurora Cannabis (ACB), Cronos Group (CRON), and HEXO (HEXO)—total $36 billion. Those of the top 10 U.S. outfits—including Curaleaf, Green Thumb, Cresco Labs (CRLBF), Harvest Health & Recreation (HRVSF), and Acreage Holdings (ACRGF)—add up to just $17 billion.
“That makes no sense, given their forecast for just $2.7 billion in 2020 sales by the Canadians and $4.8 billion by the U.S. companies. The Canadian stocks trade at more than 10 times the companies’ 2020 sales, on average, while stocks of the U.S. firms go for about three times”, Chu pointed out.
Although marijuana remains illegal under U.S. federal law, increasing numbers of states are loosening restrictions. The recent vote to legalize recreational pot sales in Illinois will bring the percentage of Americans living in rec-legal states to 30%, say the analysts.
First Eastern investments Limited – www.investmentsfirst.com, invested 8 million yuan (US$1.18 million) in a wealth management product sales app that focuses on banks, early this month, obtaining less than a 10 per cent stake. The app aggregates product information from different online banks in China to show customers a variety of return rates.
First Eastern Investments Limited
info@investmentsfirst.com
Registered Office
Two Exchange Square, 8 Connaught Place, Central, Hong Kong
+852 5803 1758
www.investmentsfirst.com
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