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The CAMS Cannabis + Portfolio – Q1 Update

“It’s time for the Cannabis Industry to show its cards.  Can you prove to your investors that your vision can be executed?  Is the executive team in place the right team to execute that vision? In 2019, investors will be demanding answers to these questions.” – February 20, 2019, Nicholas Anastasakis

In our portfolio spotlight on February 20th, 2019 we began by using the above statement – suggesting that the Cannabis Industry was at an impasse in it’s maturation process.  Monitoring the stocks in the industry every day as we do – the message that they’re giving has clearly been – pump the brakes on the expectation of everyone getting rich by picking any old cannabis stock.

January’s huge run-up in the stocks was followed by moves sideways in February and March, creating a consolidation range on many of these charts.  As the run came to a halt in early February – we began selling, taking profits and using disciplined stops.  By the end of March we had raised cash to 80%, holding only our ‘core’ holding.

A trading range obviously doesn’t get us anywhere, but can provide more information about when trading hits the upper & lower areas of the range.  If a breakout of a range higher happens, that’s good news, and the move upwards should continue.  However, if the low end of the range cannot hold, continued downside pressure should be expected.  Thus far into April, the low-end of those ranges has not held.

As the cannabis companies report their earnings one-by-one the consistent theme has been a rise of revenues, but not profitability yet.  How long will this trend continue? We’re not sure.  But, we’ll continue to monitor all the companies and their stock charts for a change of pattern.  Until then, our position is we will watch from the sidelines, sitting on a nice gain early in the year.

Cannabis Performance Q1 '19

The CAMS Cannabis + Portfolio is open and accepting capital allocations.  The portfolio will provide market exposure to publicly traded companies involved in the cannabis industry.  The portfolio provides a broad approach to not only cannabis growers, but also the complimentary businesses that provide service to this growing and developing industry.

Initial minimum investment amounts can fall into two tiers:

  1. Tier I: $10,000 minimum, provides basic exposure to the industry

  2. Tier II: $30,000 minimum, provides full exposure to the broad industry

For more information about the portfolio and investment process, reach out to me directly via email nick@cornerstoneassetmgmt.com or in the office at (440) 746-0707 ext. 13.

Sincerely, Nicholas E. Anastasakis Senior Vice President Portfolio Manager

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