 Cannabis stocks brought to you by rich TV live What's going on guys, it's investing hustler here and today I have with me rich TV live I'm doing good. So today we're gonna talk about the market why the market is like this and What to expect with these bread days? What do you expect from the market now now that we if kind of feels like we're in a bear market Do you think we're in a bear market? I think that a lot of people have to remind themselves that a month ago We had all-time highs in the cannabis sector. Yeah, and Even the Dow Jones had all-time highs this year the Nasdaq hit all-time highs this year the TSX had all-time highs this year So everything is naturally coming back from all-time highs, which it usually does when you hit 52 we guys No approaching 52 week lows and a lot of stocks in the cannabis sector I believe it is an amazing buying opportunity. However, rich TV live is strictly for education entertainment purposes Do you do diligence? Do your research before you invest in anything that we talk about and when we talk about stocks here We're not trying to tell you to buy it. Okay My personal opinion is strictly my personal opinion. I love the sector. I love this industry I believe long-term a lot of these companies are going to be a lot higher than they are But I believe that this entire sector is being brought down because of two reasons Tilray and can be growth. Yeah, Tilray went up way too high. Can it be growth went up way too high it caused a major out-of-wack situation here in the cannabis sector where companies are trading at price-to-earning ratios that are not justified Because of that and because they're two of the leaders in the entire sector They are now coming back to reality to more close to reality price-to-earning ratios That's close to what Wall Street and Bay Street wants Which typically is five different times price-to-earning ratios These are companies that are trading at in some cases a hundred two hundred times price-to-earning ratios And they need to come back to reality This is what I've been saying since the beginning. That's why I don't own Tilray. That's why I don't own canopy growth It's why I recently sold Aurora cannabis at $13. I don't feel like these companies can sustain these prices yet Until they start having more revenue and I feel like that's why the market is bringing back to these lower levels They will eventually hit a floor they will bottom out and then they will do a debt cap bounce and you will see them explode again Exactly so canopy growth since it's all-time high has dropped 40 percent And I'm reading articles that people still think it's overvalued So you you still you agree with that you think canopy growth even at these levels even after a 40 percent drop from its 52 week High is overvalued Yes, I do and What do you think is a is a fair price for canopy growth? I Think when companies are trading at around 20 to 40 times price-to-earning ratios in the cannabis sector that for this industry should be the standard When Wall Street is looking for price-to-earning ratios of 5 to 15 percent and then in the cannabis sector It's 25 times to 250 times price-to-earning ratios. It's out of whack So I think when it gets back down to like let's say 20 to 40 times price-to-earning ratios I think that that would be more reasonable. So I still think that canopy growth until they have a long ways to go down Will they go down that remains to be seen? Yeah, but right now they have been coming down and Everything has been coming down for the most part. So yeah, exactly. What did you think about their earnings? I thought their earnings were okay I think that the their their debt is high right now. They're they're spending is high I think a lot of these companies are spending a lot of money for sales and marketing and Administration and they're not gonna get their ROI the return on their investment. So I think that the street is responding the way it should the Legalization in Canada has been a massive joke. It's been a disaster They said that they don't want private companies to exist private companies are doing more than existing. They're thriving Yeah, the companies that are dealing with the government are not there's all kinds of delays There's all kinds of there's a postal strike. It's a disaster right now. It's a joke So what do you expect you can't expect it to thrive when the industry as a whole is not there's all kinds of problems right now in the industry So I think it's gonna take about six to twelve months to become normal and to sustain itself And I think that that's pretty standard considering what we've been going through Yeah, well, I do think of canopy growth is overspending because they're just trying to get a jumpstart before US becomes fully legal right for recreational marijuana. So maybe they're just trying to get a jumpstart So you might see these companies overspending First couple years because once marijuana becomes legal, which brings up the next question I guess you've heard about Andrew left. You know Andrew left and I've heard he you guys kind of talking away I read I heard an interview of Andrew left where he said that once marijuana becomes legal in the United States That the Canadian marijuana sector will become irrelevant that marijuana will become like the marijuana companies will become Irrelevant in Canada once it becomes legal in the United States because of how massive and how much money comes out of the States What do you think about that? Yeah, I think that Andrew left doesn't title to his opinion. Obviously. He's in America He's gonna say what he wants to but obviously Canada right now. They are about 80% of the market So if the Canadian companies are about 80% of the market right now, I don't see how you can even make that comment I think that comment's laughable Now long-term will America Pass Canada absolutely because Canada is one-tenth the size of America exactly Canada has always been a world leader in Canada's and Canada will always be a world leader in Canada's Because this is where we grow the best cannabis Yeah, so if Canada's always been a world leader in Vancouver specifically where I'm from has always been one of BC Kush is world-known. It's synonymous with cannabis. So if If BC in Vancouver in Canada has been world-known for cannabis and is right now the world leader in cannabis right now I find it laughable that anyone would make that comment and it's actually kind of ignorant But I'm not surprised where it's coming from. Yeah. Yeah, he's been shorting Canadian cannabis stocks for quite some time now So so you think it's a good move that all these companies are kind of overspending right now trying to get that jump start Like for example canopy and Aurora or do you think they might be getting a little too ahead of themselves? I think that they overspend because they had to there's been a lot of articles talking about How the rules changed as of October 17th? So they did a lot of spending prior to October 17th because as of October 17 The rules were making it more difficult to spend money on Advertising sales and marketing specifically. So that's why a lot of these companies spent and they've all come back and said Can't it be growth has already come out and said Bruce Linton has said we are not going to spend as much on sales and marketing Moving forward we're going to be spending half of what we did in the last quarter because of the new rules that have been implemented So I think that that's going to really help these companies moving forward I also think these companies revenues will only get bigger and more robust as they move into some of these Facilities that they're building. So I feel like the future is extremely bright This is a fantastic buying opportunity for a lot of companies. So we need to be very patient We need to be ninjas. We need to be snipers and we need to buy in the deep red and Sell when they have an explosion and when there will be an explosion because there will be because if you look at the charts of all Of these companies historically over the last two years They've all got up and they've gone down they go up and they go down and a month ago We were at all-time highs. So we will see all-time highs again. That's what this industry does It is very forgiving. So it's okay. The short is can have their laugh today, but they will be crying tomorrow Exactly, you'll be buying when they're crying Which okay, so I have a second question It was a statement made made by Kevin O'Leary and he said something about how growing pot in Canada is a bad business It's bad for business because we cannot do it all year round because we have winter So during the winter we're forced to grow it indoors which becomes expensive Unlike growing in a warm climate like Mexico like South America like Somewhere warm in the States like Miami, California. He says that it's bad bad for business because we can't do it all year round What do you think about that statement? I'd like to know his history in growing Yeah, he secondly I don't agree with that There is there is the truth to that so there is a truth to that However, however Because of the Canadian climate We have the ability to build indoor grow operations Apparently is better Surprise surprise. So since Canada is one of the biggest countries in the world Yeah with land Maybe not population, but land-wise Would that not make Canada one of the best places in the world to grow and because we have four seasons We also have very fresh water We also have a very clean country It's not heavily polluted because we're not overpopulated This makes it one of the best countries in the world to grow cannabis. That's why Canada is one of the number one growing countries in the world and that's why you don't see Cannabis coming out of Mexico that is high as quality as Canada So it's very interesting when people make comments like that because my questions and my response to them is this What experience do you have in growing? and Is Canada or is Canada not one of the largest lands and countries as far as Land in the world. I think it's not one of the largest freshwater supplies in the world And is Canada not historically been and is right now the world leader in cannabis? And I almost find it shameful that a Canadian comes out and makes a comment like that He's gonna wonder makes you wonder if you sold the soul, you know that maybe maybe I had I had no idea He was Canadian, but yeah, I was just very surprised to hear. I'm serious. He's Canadian. He's a driver We don't need him. I've seen him on Shark Tank too But I guess they have people from all over the world hosting Shark Tank as a shark. Yeah, no he's Canadian and I find it's Yeah, I just find it sad that a Canadian would make a comment like that It just goes to show how little people really know about this industry. Yeah, or maybe he's just talking about an industry He knows nothing about well, I mean, he's very He's a billionaire, right? Very well connected. He's very well connected. Yeah, but there's a reason why Canada's the global leader in cannabis right now And they're not gonna just get knocked off the shelf as number one in the world overnight Because Andrew left and Kevin O'Leary said so Actually when we have a head start of every ahead of everyone like we have a nice head start When when is it gonna become legal in the US a year from now? It's not even about that. We've been the world leader in cannabis always. Yeah We've always been the world leader in cannabis. So how you're gonna just knock us off overnight? it's not going to happen and The reality is all the best growers in the world are here in Canada They have the experience growing not the bankers and not all the billionaires with all the millions and the billions Just because you have money doesn't mean you know how to grow Two different ballgames which we've already seen here with the government coming in stepping in and we've seen what's happened Since they stepped in the entire market has collapsed because they've proven that they don't know what they're doing So So do you think we're in a bear market or this is just a mild correction and would you what about Santa Claus rally? Do you think we're gonna see Santa Claus rally or we're gonna see a bear market and it might drag on until next year Just this is a this is just a guess Doesn't have to be accurate. No facts behind this just like your guess I think that what goes down must come up and we just a week ago Had a big run and before that we had a big crash and then before that big crash. We had a big run So yeah, we'll have a big run again. This is a nothing new to me Yeah, not exactly. It's been very volatile and a lot of people have have profited off this volatility So as long as you're not a bag holder, you'll be winning Which is Stocks right now. I haven't I don't I wouldn't short marijuana stocks. It's just way too risky to short them I've but I've been buying in the red Yeah, I mean like that's what I mean like if you're shorter, would you be shorting them at 52 week lows? No, I'm definitely not definitely not. I think you go down a little bit more But how much more I mean at some point they're going to hit a floor and then when they do they'll do a dead cat bounce And they'll explode