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The company Brink & Co. Co., best known for its armored trucks, could have entered the cannabis market as a derivative service. The company signed a multi-year agreement with Canopy Growth Corp. . to provide r "logistics and cash management services" to the company producing cannabis, including international marijuana shipments announced Thursday companies.
It's likely that Brink's shares rise and even allows him to qualify for inclusion in some cannabis-based exchange-traded funds such as the ETFMG Alternative Harvest ETF, according to James Clement badyst at Buckingham Research Group which gives Brink & # 39; s a purchase price and an indicative price of $ 110.
It could also be a safer way to participate in the marijuana market without betting on the volatile actions of cannabis, Clement said in a note. published on Friday.
Brink's shares gained 1.8% at the start of the transaction.
"Most" cannabis stocks "are unprofitable and are sold n against the stratospheric multiples relative to their revenues compared to Brink, which is quoted at more traditional valuations of earnings and free cash flow , "wrote Clement. "In our opinion, an investor can get exposure to cannabis without the risk of a valuation bubble that some people perceive on the market."
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