Investors are delusional when it comes to Canadian marijuana companies + MORE Jan 10th

An employee inside the flowering room at Tweed Inc. in Smiths Falls, Ontario, December 2016. (Lars Hagberg/AFP/Getty)
Allan Gregory is a professor of economics at Queen’s University.
As the July deadline for the provinces to legalize marijuana approaches, the stock prices of Canadian publicly-traded weed producers have been on a tear. On Monday alone shares in Canopy Growth Corp., soared nearly 20 per cent. The surge in market value comes as firms try to position themselves with sufficient product to meet anticipated demand. But as these companies, some valued in the billions of dollars despite generating no profits, continue to attract starry-eyed investors, it’s worth examining what kind of opportunities will exist for these firms when provinces regulate retail pot sales. It is not difficult to predict profit margins will fall under regulation and that current market cap valuations are predicated on unrealistic expectations.
While there are some variations across provinces in their distribution plans for legalized marijuana, the largest two provinces, Ontario and Quebec, intend to have provincial run outlets modelled on their government-controlled alcohol sales…

Q: My girlfriend of three years and I are moving in together in the new year, once I close my condo sale. We both agree about my going on title, and I am hoping to also pay down some of her outstanding mortgage with some of my proceeds, and together we would also be splitting the mortgage payments thereafter.
We both understand that we would need to get an appraisal of her home for starters, but are hazy after that. What are the steps we then need to take? Do we need separate lawyers to accomplish our goal, or is this a simpler, more seamless process? We both sincerely want to pool our resources, to create a good and stable home environment for ourselves, and her daughters. Any advice, or even a template to follow?
—Michael S.
A: Hi Michael. Congratulations on the New Year goals and on closing on a condo. It certainly sounds like you and your girlfriend are talking and planning about financial matters, which is always a step in the right direction.
Now, it’s not immediately apparent from your question what your main concern is when it comes to your 2018 transition…

Marijuana plants grow in a climate controlled growing room at Tweed Inc., now Canopy Growth, in Smith Falls, Ontario in 2015. (James MacDonald/Bloomberg/Getty Images)
Allan Gregory is a professor of economics at Queen’s University.
As the July deadline for the provinces to legalize marijuana approaches, the stock prices of Canadian publicly-traded weed producers have been on a tear. On Monday alone shares in Canopy Growth Corp., soared nearly 20 per cent. The surge in market value comes as firms try to position themselves with sufficient product to meet anticipated demand. But as these companies, some valued in the billions of dollars despite generating no profits, continue to attract starry-eyed investors, it’s worth examining what kind of opportunities will exist for these firms when provinces regulate retail pot sales. It is not difficult to predict profit margins will fall under regulation and that current market cap valuations are predicated on unrealistic expectations.
While there are some variations across provinces in their distribution plans for legalized marijuana, the largest two provinces, Ontario and Quebec, intend to have provincial run outlets modelled on their government-controlled alcohol sales…

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