Looking for potty stock tips? The former CEO of Canopy Growth has just given 3 – The Motley Fool

Farewell, Bruce Linton. We hardly knew you.

Cover growth (NYSE: CGC) launched its former CEO and founder on July 3rd. In the press release of the Canadian cannabis grower, Linton said, "The board decided today, and I agreed, my turn is over." However, Linton called CNBC on Wednesday morning and explained that he had been forced out.

CNBC's conversation with Linton was fascinating. Kevin O 'Leary, of CNBC, asked Linton what stocks of cannabis he would invest in. One of the most intriguing moments has arrived. Here are three tips regarding the stock of marijuana straight out of the former CEO of Canopy Growth.

Source of the image: Getty Images.

1. Growth of cover

Although Linton may not like being jerked, he is still a big fan of Canopy Growth. He thinks the company "is in great shape". Linton highlighted in particular the stock options of Canopy employees, which should allow the company to retain its talents. It could also have been a veiled move to criticize employee options, which accounted for more than half of Canopy's operating loss in the fourth quarter.

Linton continues to believe that Canopy Growth will dominate the global cannabis industry. This is why he does not plan to sell much of the approximately 18 million Canopy shares he owns.

In particular, Linton thinks that the American opportunity of Canopy is great. He led Canopy Growth to obtain permission to build a major hemp production plant in the state of New York and to enter into an agreement for the acquisition of a hemp operator. cannabis based in the United States. Surface Fund. The acquisition of Acreage will not happen until the federal marijuana laws are changed in the United States. But Linton hopes this will happen and that at this point, he thinks his Canopy stock "will be worth a multiple of what it is worth now."

2. OrganiGram Holdings

What are Bruce Linton's favorite pot stocks, with the exception of Canopy Growth? He puts OrganiGram Holdings (NASDAQ: OGI) at the top of the list.

Canopy Growth and OrganiGram have partnered in the Canadian province of Newfoundland and Labrador. OrganiGram supplies Cannabis-based products for Canopy's Tweed retail business in the province. In addition, Canopy Growth sells OrganiGram products to other licensed retailers in Newfoundland and Labrador.

Linton said that he liked OrganiGram "because of the way they manage themselves". He added that he had found the company "pretty solid". OrganiGram is one of only four cannabis producers to have signed supply agreements for adult recreational marijuana markets in the 10 Canadian provinces. It also has low production costs and is on track to produce 113,000 kilograms of cannabis a year by the end of 2019.

3. canopy rivers

The third choice of Linton 's pot shares is not too surprising. He recommended the fallout of Canopy Growth Canopy Rivers (NASDAQOTH: CNPOF) for investors seeking to diversify.

He pointed out that Canopy Rivers offers "about 14 investments in a portfolio" and that it is managed "by people familiar with the sector". In fact, Canopy Rivers now has 18 investments in its portfolio. These transactions include joint ventures, royalty stream transactions, dividends and the financing of convertible debentures.

Although Canopy Rivers is a separate entity from Canopy Growth, the two companies are still working closely together. Canopy Growth also holds approximately 27% of the Subordinate Voting Shares of its spin-off, after investing an additional $ 30 million in Canopy Rivers earlier this year.

Is Bruce right?

The Board of Directors of Canopy Growth, dominated by members chosen by the company's major partner Constellation Brands, apparently, does not like Bruce Linton as much as some. But he certainly has a better understanding of the cannabis industry than most people. Are Bruce pot-picks smart actions to buy?

I agree with 100% on Canopy Growth and OrganiGram. My point of view is that Canopy Growth is the best placed of all cannabis growers to win in the long run. I also like a lot OrganiGram. As Linton has mentioned, it seems like it's a well-run business. I suspect that OrganiGram could be on the short list of candidate partners of large companies operating outside the cannabis industry.

Although I understand Linton's point of view on Canopy Rivers, it's still a relatively new autonomous entity. I would rather wait to see how some of the company's investments will materialize. However, the Canopy Rivers could very well generate solid long-term returns.

At the CNBC phone call, Linton made another recommendation that I like very much. This is not a selection of stock, but rather a choice of replacement CEOs. When asked who he thought should take the reins of Canopy Growth, Linton replied, "It's unpopular, but I think Elon should take something else because Is a rather creative guy "He was of course referring to You're here and SpaceX President Elon Musk. Hey, why not