• Baked In
  • Posts
  • 📈 Canadian Markets Are Closed! 📈

📈 Canadian Markets Are Closed! 📈

AuthorAuthor

William McNarland & Anthony Varrell
May 20, 2024

GM Everyone,

Happy Monday morning! A reminder that the Canadian markets are closed today due to a holiday, so that pesky short-selling cabal north of the border is off today. Maybe. But seriously, we had a big week last week in terms of pushing the ball forward (the capital markets lagged, of course) with the release of the proposed ruling as well as the OLC memo. This release was the biggest thing to happen since the FOIA request for the HHS recommendation that gave us insights into the actual lens the HHS was looking at cannabis through. We now have earnings behind us as well as the proposed ruling officially hitting the register. Let's get ready for some volatility!

Today’s letter can be read in 7 minutes and 45 seconds.

What's Driving the Market Today?

Stock market futures are slightly higher after setting records last week; these are the top highlights moving the markets:

  • Nvidia's earnings anticipation boosts AI sector.

  • Chinese property support measures underwhelm.

  • U.S. Treasury yields rise slightly post-inflation data.

  • Fed officials' speeches eyed for policy hints.

  • Gold hits new highs amid geopolitical tensions.

Trulieve’s Market Strategy: Kim Rivers on Expansion and Advocacy

Facts that matter:

  1. Trulieve’s CEO, Kim Rivers, discusses the impact of President Biden’s cannabis reform.

  2. Trulieve reports a 58% gross margin, showcasing financial growth.

  3. Kim Rivers discusses the need for regulatory reforms in cannabis banking.

Quick Hit: Last weeks announcement by President Biden regarding the rescheduling of marijuana has sent ripples through the cannabis industry. This decision, corroborated by the signature of the Attorney General, signifies a major step toward cannabis reform. Kim Rivers has emphasized the importance of this development, stating, “To see the signature of the Attorney General at the bottom of the page, and to hear President Biden on camera talking to the American people about marijuana and its rescheduling, marks another historic day.” This regulatory shift is not merely symbolic but a tangible step forward in the long effort toward the end of cannabis prohibition.

Crypto King Aiden Pleterski Arrested in $29 Million Canadian Fraud Case

Facts that matter:

  1. Canadian Crypto King Pleterski charged with massive investment fraud.

  2. Canadian Crypto King misused funds for high-end living.

  3. Pleterski’s arrest marks a push for better crypto market regulation.

Quick Hit: Aiden Pleterski, known as the “Crypto King” from Canada, was arrested for fraud involving $29 million last week. Pleterski and his associate, Colin Murphy, were charged after a 16-month investigation that began in July 2022 following numerous complaints about an investment scam. Pleterski received C$41.5 million in investment funds but only invested 1.6% of the total amount. The Ontario Superior Court had previously ordered Pleterski and his company, AP Private Equity Ltd, into bankruptcy, with Grant Thornton Ltd appointed as trustee.

Coverage Initiated: New Lake Capital Partners

NewLake Capital stands out in the small-cap stock market for its strong financials and its unique position in the cannabis sector. The company’s business model operates on a simple yet efficient premise where it serves as a landlord to cannabis operations, offering real estate solutions that are both strategic and lucrative.They take in the money from the cannabis companies and manage it. The company takes a narrow, thin charge for doing that.

SAFE Banking Act: Don Murphy’s Insights on Cannabis Industry Reform

Facts that matter:

  1. Don Murphy emphasizes the SAFE Banking Act’s critical role in cannabis market legitimacy.

  2. Don Murphy’s point is that the SAFE Banking Act facilitates the HOPE Act.

  3. Don Murphy highlights potential political hurdles for the SAFE Banking Act.

Quick Hit: Last week, the Justice Department’s move to reschedule marijuana from Schedule I to Schedule III gained traction, reflecting a significant policy change. Additionally, the SAFE Banking Act, aimed at providing cannabis businesses access to financial services, saw renewed discussion in Congress, highlighting the momentum for comprehensive cannabis reform. Don Murphy, an advocate and expert in cannabis policy, offers invaluable insights into these changes and their implications.

Would We Buy These Four Small Cap Stocks? | Trade to Black Small Cap Sunday

Facts that matter: On our latest Trade to Black Small Cap Sunday Podcast, we provide research for four small-cap companies: OTC Market Group (OTCQX: OTCM), Perfect Corp. (NYSE: PERF), Portillos (NASDAQ: PLTO), and High Tide (NASDAQ: HITI). Our analysis will cover their business models, revenue drivers, historical financial performance, and creditworthiness. We will also determine whether hosts Bill McNarland and Shadd Dales would consider investing in small cap companies. What factors to see before as an investor we see including: Gross profit margin, levered free cash flow, net revenue, net income, how many assets company holds, depreciation, dividend growth for last three years. We look at growth catalysts for the industry company and overall market trends of the industry. Don't miss out on this valuable analysis! Watch now to gain expert analysis and stay informed on the latest market trends.