Due Diligence Wednesday

due diligence

The S&P 500 was off 0.15% after minor selling pressure earlier in the day. NASDAQ was down a little over 0.5%. There is a lot of buzz around the bad behavior of Uber executives essentially trying to blackmail the media to only write positively about their company. We are often concerned about the behavior of companies in the cannabis sector, but there are issues across other sectors that are important to note.

Cannabis indices showed little action with MJIC Marijuana Index moving down 0.4% and Benzinga 420 Marijuana Index closed a bit above flat.

Daily Positive: Another company, MFST, that had no real business in cannabis has moved onto ebola today, exiting our market stage right. Buh-bye, you won’t be missed.

Daily Negative: CBDS posted $1,114.00 in revenue for Q3.

We are in Los Angeles today on a due diligence trip. It is always good to get out and see what is happening in different markets. We are pleased to see a company with solid revenues and a strong fundamental business that is planning to go public. This is exactly the reason why we are bullish on the future of the public space and will continue to work to support companies aiming to contribute positively. As investors in this young sector, we urge research and in-depth discovery before tossing your hat into the ring.

 

The discussion above is provided for informational purposes only and does not constitute an offer of, or solicitation for, any investment services or products offered by the author. The author is not making any investment recommendations and the opinions above do not constitute investment advice. Reference to above indices [and companies] is based on information provided by sources the author believes to be credible. Investing in the cannabis industry, as with other industries, presents certain risks including the risk of loss on an investment.

Morgan is a Founding Partner and Managing Director of Poseidon Asset Management. He is the Chief Investor of their Cannabis Focused Fund. Morgan previously worked for a privately owned Registered Investment Adviser and earlier was at UBS Financial Services focusing on wealth management. Morgan believes in the potential of the cannabis industry and likes having an active involvement as it develops. You can follow him on Twitter @PoseidonAsset.

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