Jason Cohen

About the Author Jason Cohen

Jason is a Smarter Analyst editor and writer, who specializes in biotech and cannabis-based pharmaceutical companies.

Cannabis Strategies Acquisition (CBAQF) Stock at $26? Northland Thinks It’s Possible


There’s little doubt that the burgeoning pot industry offers plenty of opportunity for investors. According to a report by BDS Analytics, global consumer cannabis spending is expected to skyrocket by 38% in 2019 to $16.9 billion, up from an estimated $12.2 billion in 2018, $9.5 billion in 2017, and $6.9 billion in 2016. Furthermore, compound annual sales growth between 2017 and 2022 is expected to clock in at 26.7%, with the report calling for $31.3 billion in global marijuana sales in 2022.

The question remains: Which marijuana stocks to buy?

Northland analyst Paul Penney believes Cannabis Strategies Acquisition Corp. (CBAQF) is in prime position to become one of the nation’s premier recreational & medical legalized cannabis providers. As a result, Penney initiates coverage on the stock with an Outperform rating and price target of $26, which implies a potential upside of 90% from current levels. (To watch Penney’s track record, click here)

Cannabis Strategies Acquisition Corp. (CSAC) is a SPAC (Special Purpose Acquisition Corporation) that initially listed in Canada in December 2017 with the overall goal to become “one of the leading vertically integrated cannabis owners/operators across the United States.” On October 17, 2018, CSAC announced the acquisition of 5 cannabis related companies to create what the Company refers to as the “Anchor Portfolio.”

Penney believes “CSAC has not only stealthily accumulated a high quality set of retail brands / stores in highly favorable (large populations / disposal incomes with limiting number of licenses) legalized cannabis markets (NV & MA), but has an extensive pipeline of strategic / accretive acquisitions on the come (MI, CA, FL, etc.) that will further augment / broaden their geographic reach.” The analyst continued, “With an extremely smart / capable management team, we believe CSA will have both a highly efficient / scalable operating process and a strategic / highly profitable growth focus that will cumulatively equate to industry leading profitability / margins and emergence as one of the leading / reputable MSOs in legalized cannabis over a longer term basis. Further and post the SPAC closing (likely early April), we believe institutional awareness will be greatly enhanced under a more unified / cannabis centric name.”

Check out the articles in this category focused on cannabis stocks. By gaining a strong foundation in both the fundamentals and technical details usually involved in cannabis stocks, you’ll be able to invest with greater confidence.

 

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