Cannabis industry has 30-40% more upside Cannabis companies likely have an eventful four years ahead of them.
Pot stocks have been hot following Election Day, with big names in the space gaining on the prospects of a Joe Biden presidency. Exchange-traded funds tracking the space have also soared over that time frame, with one of the biggest winners being the Amplify Seymour Cannabis ETF (CNBS), up nearly 23%.
Tim Seymour, founder and chief investment officer of Seymour Asset Management and the portfolio manager of CNBS, said the election bolstered the space in more ways than one.
“The dynamics in the cannabis sector are really extraordinary,” he told CNBC’s “ETF Edge” last week. “We saw five new states vote through either adult or medical markets. The top-line growth story is 30-40%. ... This is CPG, this is very sophisticated and the country’s in favor.”
For Seymour and CNBS, the key is “finding the right exposure,” he said. The ETF’s top five holdings are GrowGeneration at roughly 12%, Canopy Growth at 11%, GW Pharmaceuticals at 11%, Village Farms at 11% and Aphria at just under 10%.
Seymour’s fund does not own shares of popular Canadian cannabis stocks Tilray and Aurora Cannabis because the companies cannot directly own U.S. assets despite being listed on U.S. exchanges.
Cannabis industry has 30-40% upside, ETF issuer says after Biden win (cnbc.com)