Valens GroWorks Corp (CSE:VGW,OTC:MYMSF) released its eleventh episode on its Extraction podcast this week during which they talked to Stoic Advisory Founder and thought leader Aaron Salz. Salz provided his thoughts on what’s next in the cannabis industry and how to properly evaluate companies. Stoic Advisory is a Toronto-based corporate advisory firm focused on the global cannabis industry. It doesn’t provide stock tips to investors but offers merger and acquisition services. However, Salz feels a personal responsibility to help investors set realistic expectations when entering the market.
Salz’s number one suggestion to investors is to do their due diligence. He stated that Stoic Advisory looks at the jurisdiction and the overall company before moving ahead with a transaction. In more advanced jurisdictions like Canada, his firm looks at the company’s capital structure and management team. He also recommended having a diverse portfolio that primarily consists of large cap, blue chip names and not to make decisions based on the fear of missing out (FOMO).
“It’s really just FOMO. FOMO drives so much in this space from an investment standpoint, from the retail level up to the institutional level. It’s the worst reason to invest in things,” said Salz.
Salz also pointed out that the recreational market in Canada hasn’t performed as expected. He believes this is due to missing product offerings, such as edibles and extracts. Salz pointed out that edibles, extracts and vapes make up to 60 percent of sales in some US states. Salz is the most interested in the vape market and is wary of the beverage market due to the “high-stakes” that large beverage companies brought to the table.
To listen to the podcast, click here.