I made Alcanna (CLIQ.TO; $6.15) a top pick on BNN three weeks ago. I hadn’t written it up yet because I wanted to meet with management first and that didn’t happen until after my appearance. Post my meeting with senior management a few days ago I bought a sizeable position. Alcanna sells alcohol and marijuana at more than 200 retail locations, mostly in Alberta. The stock cratered last year because the company was being harassed by deep-discount boozer retailers. It responded by using its financial muscle (balance sheet, loaded with cash from an investment by Aurora Cannabis at $15/share) to slash its own prices to money-losing levels. This drove one deep discounter to join forces with CLIQ (in the form of a joint venture that CLIQ owns 70% of) and drove another into bankruptcy, after which the joint venture bought the assets at fire-sale prices.

There is still one big deep discounter to contend with, but I understand it’s on the ropes and that it’s a matter of time before it either dies or joins the JV. Already, however, CLIQ has been raising prices. I believe this stock can double in 12-18 months if everything works as planned. The stock isn’t on anyone’s radar, so it’s cheap.

I will send a more detailed report when I’m back from vacation in two weeks.

 

The information and recommendations made available here (“Information”) by The President’s Club Investment Letter and/or all affiliates is for informational purposes only and not to be used or construed as an offer to sell or a solicitation of an offer to buy any services or securities. You further agree that The President’s Club will be liable for any losses or liabilities that may be occasioned as a result of the information or commentary provided in the letter. By accessing the site and receiving this email, you accept and agree to be bound by and comply with the terms and conditions set out herein. If you do not accept and agree to the terms, you should not be a subscriber or accept this email.
The President’s Club Investment Letter is not registered as an adviser under the securities legislation of any jurisdiction of Canada and provides the Information pursuant to an exemption from the registration requirements that is available in respect of generic advice. The recommendations contained on this email are not tailored to the needs of particular persons and may not be appropriate for you depending on your financial position or investment goals or needs. You should apply your own judgment in making any use of the Information, especially as the basis for any investment decision. Prior to making any investment decision, we recommend that you seek outside advice from a qualified and registered investment advisor.
In no event will The President’s Club Investment Letter be responsible or liable to you or any other party for any damages of any kind arising out of or relating to the use of, misuse of or inability to use this site and email. The Information is directed only at person resident in Canada. Nothing in this site shall constitute an offer or solicitation to anyone in the United States of America or any jurisdiction where such offer or solicitation is not authorized or to any person to whom it is unlawful to make such a solicitation. If you choose to subscribe and receive emails from outside of Canada, you acknowledge that the Information is intended for use by persons resident in Canada only.
This is not an investment advisory, and should not be used to make investment decisions. Information in The President’s Club Investment Letter is often opinionated and should be considered for information purposes only. No stock exchange anywhere has approved or disapproved of the information contained herein. There is no express or implied solicitation to buy or sell securities. The writers and editors of The President’s Club Investment Letter may have positions in the stocks discussed above and may trade in the stocks mentioned. Don’t consider buying or selling any stock without conducting your own due diligence.
Copyright © 2019 The Presidents Club investment letter, All rights reserved.
You are receiving this email because you are part of The Presidents Club newsletter.