Bruce Linton is the founder and former CEO of Canopy Growth Corp (WEED, CGC), the largest cannabis company in the world. Under Linton’s guidance Canopy grew from a market cap of $500 million to more than $12 billion, making Linton one of the most successful CEOs in the history of the stock market.
Yesterday Linton revealed his next moves in the cannabis industry, accepting advisor positions with three companies:
- Gage Cannabis USA: Michigan dispensary chain.
- Better Choice Company (OTC: BTTR): CBD products for pets.
- Mind Medicine: medical psychedelics.
Linton also announced he is becoming an activist investor in Slang Worldwide (CSE: SLNG, OTC: SLGWF). Activist investors typically take a large position in a company and then campaign to management for big changes.
Linton’s involvement in these companies is important for cannabis investors to follow. It sends an important message.
#1 – Linton would only join cannabis companies that he expects to do very well.
#2 – Linton’s guidance will help make these companies stronger.
From this list of four companies, two are currently traded on stock exchanges. That means that regular investors can follow Linton’s lead and buy shares.
Slang Worldwide (CSE: SLNG, OTC: SLGWF) is a Canadian cannabis company with a market value of $150 million. Slang owns one of the best portfolios of cannabis products in the industry. That includes oils, edibles and vape pens, all ranking among the fastest-growing segments of the cannabis industry.
Linton bought 347,222 units at a price of $0.72 per share. Each unit contains one common share and one common share purchase warrant.
Slang’s leading cannabis portfolio has helped the company deliver impressive operating results. Slang’s second-quarter results from late August were impressive.
- Delivered Q2 2019 revenue of $7.2 million; a 44% increase over full quarter Q1 2019 revenue of $5.0 million
- Q2 2019 pro forma revenue of $22.0 million which includes the impact of previously announced acquisitions and investments (1)
- Sold over 1.1 million branded units, containing 74 million branded servings, up by 16% and 45%, respectively, over Q1 2019
Slang has been weak on the chart with the broader cannabis sector. Shares have been stuck in a nasty bear market for the last four months. I don’t view this as a signal that something is wrong with this company. In the long run, I view this weakness as an opportunity.
Take a look at the action below.
Better Choice Company (OTC: BTTR) is an early leader in the high-growth CBD for pets industry. This is a US-based cannabis company, headquartered in Florida with a market cap of $215 million.
BTTR has developed an impressive portfolio of CBD pet products.
- TruDog – Direct To Consumer Pet Wellness Products
- Rawgo! – Direct to Consumer Dehydrated Dog Food
- Orapup and TruDog Dental – Direct to Consumer Oral Care Products
- TruCat – Direct to Consumer Cat Wellness Products
BTTR is still an early-stage company – I don’t see a lot of revenue happening yet. However, the company began rolling these products out this summer and predicts it could expand to 30,000 retail locations by the end of 2019.
BTTR has also been volatile on the chart with the broader cannabis sector. Shares are down about 50% from the 52-week high but have been showing signs of strength lately.
Take a look at the action below.
The Big Picture
Canopy founder and former CEO, Bruce Linton, has been making some moves in the cannabis industry, assuming advisor roles for three promising young cannabis companies and as an activist investor in another.
This is an important signal to cannabis investors. Linton knows the global cannabis industry as well as anyone and is clearly optimistic these companies will perform well.
From the group, Slang and the Better Choice Company both trade on public stock exchanges – which means readers at home can easily follow Linton’s latest cannabis stock picks.
Disclosure: Michael Vodicka owns shares Canopy Growth Corp (CGC) at the time of this writing.
About the Author & Cannabis Stock Trades
Michael Vodicka is an equity analyst with more than 20 years of experience in trading and investing. His research has been featured in some of the industry’s most respected publications. He has been investing and leading investors in the cannabis sector since 2013.
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