What this Analyst Looks for in a Cannabis Company

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Doug Loe, Analyst at Echelon Wealth Partners, shares what he looks for in a cannabis company

Doug Loe tends to look at firms that he believes can have market leadership over the longer term. In fact, it’s inevitable that medical cannabis companies are going to experience ebb and flows in their market valuation. Loe also believes that much of the recent share price softness has been a consequence of conventional income statement metrics falling below what were probably often optimistic expectations. “We tend to take a medium and longer term perspective on how value can be created. Not just by establishing dominant market share in specific medical or nutritional markets, but also how product differentiation can also drive that evolution”, says Loe.

Below is a chart marking the market value of the leading Canadian companies in the cannabis industry 2019.