In times of regulatory uncertainty, inflation and stock market volatility, defining an investment strategy can be a difficult problem. Predicting the future of how cannabis stocks may benefit from market trends requires industry experience, a holistic approach, in-depth information, and an extensive network of personal relationships.
Luckily, investors are getting involved in the upcoming ones Benzinga Cannabis Capital Conference in Chicago On September 13-14, you’ll have the opportunity to connect with the industry’s leading analysts and researchers.
Lead Analyst? That will happen Vivian Asher, Managing Director and Senior Research Analyst One that specializes in the beverage, tobacco and cannabis industries Cowen & Co 2014 became Azer First senior Wall Street analyst to cover the emerging cannabis sector,
Prior to joining Cowen, a diversified financial services company, Azer, who holds an MBA from NYU’s Stern School of Business, spent more than nine years at Citi in the consumer staples division.
Key Market Drivers: Price Drop, “Covid Comps” and Supply Side Issues
In a May interview with Yahoo Finance, Azer cited the decline in Canadian cannabis stock prices, which he defined as a combination of underlying fundamentals and a lack of regulatory changes.
“We also have some sluggish fundamentals. We can see in our proprietary scrap data that the COVID comps have been pretty tough. There was certainly a lot of impetus in the United States. There were certainly opportunities for consumption growth in the first year during the pandemic. So in the first quarter of 2022, we’re still missing some of last year’s stay-at-home compasses,” Azer said.
Regarding pricing, Azer noted that the current price drop is setting back regulatory expectations, at least in part, as federal legalization may not happen any time soon.
“I think we’re starting to see that from operators. I think the news of the 1Q22 earnings season has appropriately dampened some of the excitement some CEOs have expressed about the potential for regulatory change. did.
He mentioned the problem of oversupply in wholesale prices. “There were many flowers planted in constitutional states in 2021. And when it was harvested in October, we got into an oversupply situation. Oddly enough, with this wholesale price deflation, this translates into lower retail prices. And he drives in excess.
“Consumers are reacting to this lower price especially against the backdrop of very high inflation for the rest of that consumer’s basket. And so, despite the drop in price, year after year we continue to see an increase in visitor traffic.” You see.”
Visit us in Chicago and meet Vivian Eiser in person, Learn about the development of emerging, high-growth cannabis markets as MSOs leverage scale and vertical integration; Post-COVID and post-stimulus consumer behavior in a deflationary cannabis market and continued migration from illicit market to legal channels. All this and more from the leading cannabis analyst, Vivian AsherBring up your own questions and concerns at the world’s largest and most successful cannabis investing and finance event on September 13th and 14th. Palmer House Hotel in Chicago, Get your tickets here,
Image courtesy of Cowen & Co.