Grind for October 25th, 2018
“Love your enemies, for they tell you your faults.”
– Benjamin Franklin
Canadian stock market responds to marijuana legalization
On Wednesday, October 17th, Canada became the second country in the world to legalize recreational marijuana.
Shares of major cannabis companies predictably soared and then plunged as investors rushed to purchase stocks. Companies to watch for include Cronos, Tilray, and Canopy Growth (which trade in the US) as well as Aurora Cannabis and Aphria.
The cannabis market has been a roller coaster ride for months due to speculation that major consumer companies are looking to invest. Rumor has it Coca-Cola is looking into Aurora and Marlboro is considering Aphria.
In August, Corona-maker Constellation Brands announced a $4 billion investment in Canopy Growth, pushing its stake in the company to 38%.
Over the next three years, Constellation will have the opportunity to purchase up to 139.7 million in new shares and increase its stake to over 50%.
Canada’s decision to legalize recreational marijuana is a “watershed moment” for the industry which could prompt other countries to follow suit, says Michael Gorenstein, CEO of Cronos. “It just gets the ball rolling. We see regulatory tailwinds globally.”
Ken Mahoney, CEO of Mahoney Asset Management, urges investors to look for companies that will benefit from the trend but are not producers themselves.
— KushCo Holdings, which makes packaging and marketing materials
— Scotts Miracle-Grow, which owns a leading manufacturer of hydroponic growing supplies
— GW Pharmaceuticals, which already has an FDA-approved cannabis-based treatment for epilepsy
— Innovative Industrial Properties, a real estate firm that rents land to cannabis growers
Paul Rosen, CEO of Tidal Royalty, warns investors to keep an eye on companies’ balance sheets.
Growing marijuana takes a lot of capital, and the “green rush” has led to high valuations that in many cases will be unsustainable. Not every company will wind up like Google, joked Rosen, some will end up like Ask Jeeves.
The State Department is still covering for Hillary Clinton
Last week, Judicial Watch went to federal court seeking depositions from Hillary Clinton, Cheryl Mills, and other State Department officials regarding the agency’s processing of an FOIA request and Hillary’s emails.
The watchdog’s request, initially filed in 2014, seeks copies of all talking points given to Ambassador Susan Rice regarding the attack on the US consulate in Benghazi in 2012.
[The Clinton State Department has largely been blamed for the attack, which killed four Americans. Rice repeatedly claimed the attack was caused by a YouTube video.]
Judicial Watch sued the State Department after it failed to respond to the FIOA request. The case exposed the Clinton email scandal to the public and was then put on hold while federal investigations were underway.
Judicial Watch was granted “limited discovery” in March of 2016. The organization filed a request for more information in May, but the case has been further stalled by the State Department’s refusal to cooperate.
“It is frankly unbelievable that the State Department is still protecting Hillary Clinton and her aides from being asked basic questions about her illicit email system,” argues Judicial Watch. “The courts were misled and obstructed by Hillary Clinton’s email scheme and we hope to get some more answers about this scandal.”
During the hearing last week, US District Court Judge Royce C. Lamberth criticized the FBI and Justice Department for providing false information regarding the email issue:
“The information that I was provided was clearly false regarding the adequacy of the [Clinton email] search and…what we now know turned out to be the Secretary’s email system,” said Lamberth.
Meanwhile, Judicial Watch has urged Attorney General Jeff Sessions and the Justice Department to “finally undertake a complete and legitimate criminal investigation.”
On Friday, Judicial Watch President Tom Fitton appealed directly to President Trump for answers:
“President Trump should ask why his State Department is still refusing to answer basic questions about the Clinton email scandal,” said Fitton. “Hillary Clinton’s and the State Department’s email cover-up abused the FOIA, the courts, and the American people’s right to know.”
Judge Lamberth is expected to issue a ruling soon.
GOOD TO THE LAST DROP:
Did you know… English novelist Arnold Bennet drank a glass of water in a Paris Hotel to prove it was safe. He died two months later of Typhoid!