2020 is the best year to invest in cannabis companies: Entourage Effect Capital CEO

CNBC’s “Power Lunch” team discusses how cannabis stocks fared in 2019 and what investors should watch for in 2020 with Matt Hawkins of Entourage Effect Capital.

Marijuana, gold, oil, emerging markets and micro caps are just some of the investing themes industry pros expect to work in the year ahead.

“I think this is going to be a big year for cannabis ETFs,” said Dave Nadig, managing director of ETF.com. “It’s been a rough year for most of the cannabis investments, and I think that in 2020, we’re going to see a continued push towards legalization around the world.”

The ETFMG Alternative Harvest ETF (MJ), the market’s largest cannabis ETF in terms of assets under management, has shed nearly 31% in value year to date as many of its underlying securities went through an industrywide reckoning related to longer-than-anticipated product rollouts and overly enthusiastic forward estimates. Rival marijuana ETFs launched earlier this year have shared in the pain.

“The companies that are in these funds right now, I think, are going to get overpriced very quickly and we’re going to see a lot more companies come to play,” Nadig said.

Tim Seymour, who is founder and chief investment officer of Seymour Asset Management and runs the Amplify Seymour Cannabis ETF (CNBS), advised investors to take their time if they’re considering buying into the downtrodden group.

“As a guy who runs a cannabis ETF … my view is that the size of the addressable market has grown,” Seymour said shortly after returning from the MJBizCon cannabis business conference in Las Vegas.

“You’re starting to see separation of the performers and the nonperformers. You’re starting to see capital markets dynamics come to work,” Seymour said. “So, there’s no question about the efficacy [or] what’s happening in the sector. The question is are these companies, right now, you can invest in?”

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50 Comments

  1. Kari Dufano on February 21, 2021 at 8:05 pm

    Because there shouldn’t be regulations, you should keep your damn stocks, pharmacies, marketing away from the herbs. You greed mongers. You will lose!



  2. Shedosenteven GoHere on February 21, 2021 at 8:06 pm

    Free the weed



  3. KingJustice98 on February 21, 2021 at 8:08 pm

    Invest in tomato companies, 2020 is going to be a great year.



  4. MakingMadMoves on February 21, 2021 at 8:10 pm

    I will invest in cannabis for smoking purpose only. thanks in advance.



  5. bigbabyzubas on February 21, 2021 at 8:11 pm

    The day after the SAFE banking act passes?

    Cannabis stocks will double, as it will have proper Accounting, And the ability to root out Black Market Cartel elements.



  6. Kevin Tewey on February 21, 2021 at 8:12 pm

    Don’t want to trust the big cannabis or hemp companies ?
    Micro investments have a very good outlook also … contact me



  7. Unapologetically American on February 21, 2021 at 8:13 pm

    Waiting… to get my money back plus



  8. Ali Cetin on February 21, 2021 at 8:13 pm

    I sold my newborn baby because of last cannabis crash 🙁



  9. Luke Harrington on February 21, 2021 at 8:13 pm

    4 Million $GRPS bought for fractions of a penny sold @ 5 cents is $200,000 cash



  10. Dorathy Moore on February 21, 2021 at 8:14 pm

    not just cannabis, stocks and crypto is on demand this year.. Last year I accumulated over $400,000 profit in the crypto market with the assistance of a financial expert



  11. Tetsu de Rothchild on February 21, 2021 at 8:14 pm

    https://edition.cnn.com/2019/09/10/health/vaping-outbreak-2019-explainer/index.html

    concentrated smoke like weed. it does not allow the lungs to heal.
    vaping dabbing and even regular ital smoking destroys ur lungs. only recently
    did folks start doing this all day long everyday. years from now like sunny
    delight the drink in England results will show what im saying.

    https://en.wikipedia.org/wiki/SunnyD

    In December 1999, according to a report by BBC News, the negative
    publicity escalated when a Sunny Delight television commercial showing a
    snowman turning orange was released, at about the same time as reports of a
    four year old girl who experienced her skin turning orange – due to the
    product’s use of beta-Carotene for color – after drinking an estimated 1.5 litres
    of Sunny Delight a day.

    Ginny pigs a?



  12. Banbury litho on February 21, 2021 at 8:15 pm

    Well that went well then 👎👎👎



  13. RMV Book on February 21, 2021 at 8:16 pm

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  14. F M on February 21, 2021 at 8:16 pm

    Supporting aurora cannabis here!



  15. Eric Wagner on February 21, 2021 at 8:17 pm

    I bought some cannabis stocks of my Allystock trading account. Wanna see how much more I could shovel up from there? Weekly profits & huge sessional payouts.. it’s worth it really



  16. zuz g.o.w on February 21, 2021 at 8:20 pm

    https://thegreatlandcannabis.com/cart/ check our website for quality buds



  17. Andro dibox on February 21, 2021 at 8:20 pm

    You’d have to be high to buy these stocks



  18. G G on February 21, 2021 at 8:21 pm

    Its confusing especially at first, but now relationships are established and people are trusting legalization. This is a medicinal product and now there is more awareness. Also, things are less risky since banks can allow the large sums of money.



  19. Francisco on February 21, 2021 at 8:22 pm

    How can I buy stocks where do I go? Like a website or an app?



  20. Tetsu de Rothchild on February 21, 2021 at 8:22 pm

    https://edition.cnn.com/2019/09/10/health/vaping-outbreak-2019-explainer/index.html
    concentrated smoke like weed. it does not allow the lungs to heal. vaping dabbing and even regular ital smoking destroys ur lungs. only recently did folks start doing this all day long everyday. years from now like sunny delight the drink in England results will show what im saying.
    https://en.wikipedia.org/wiki/SunnyD
    In December 1999, according to a report by BBC News, the negative publicity escalated when a Sunny Delight television commercial showing a snowman turning orange was released, at about the same time as reports of a four year old girl who experienced her skin turning orange – due to the product’s use of beta-Carotene for color – after drinking an estimated 1.5 litres of Sunny Delight a day.
    Ginny pigs a?



  21. Fluman Chu on February 21, 2021 at 8:22 pm

    Bro, totally far out man. 🚬



  22. dave smith on February 21, 2021 at 8:23 pm

    Who does the Big Boys come to when they need Gas,the Truth,the Dosey

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  23. C.D.N. T.H.C. on February 21, 2021 at 8:27 pm


  24. Todd Markee on February 21, 2021 at 8:28 pm

    NUGS. Great pick



  25. Tony on February 21, 2021 at 8:29 pm

    ACB ON WATCHLST! 🔥🌳💨



  26. 1k subs no video challenge on February 21, 2021 at 8:31 pm

    Least it isnt tilray 299 at peak now 16



  27. Dennis Richard Rich on February 21, 2021 at 8:32 pm


  28. medaswho on February 21, 2021 at 8:32 pm

    People need to quit smoking pot.now it’s just the rich taking advantage of the poor on steroids.Not to forget the market is totally biased.it will only provide wealth for a handful,mainly those who have already been living good.If you live in a legal state don’t buy it make your own.and forget all the gimmicks online.These seeds were smuggled into the country with the help of a Tibetan monk’s shady spot.And these seeds here came here in a marines back pack in a false shaving cream can southern Russia,yeah.this was Michael Jacksons favorite, moonwalkers og. At the end of the day you will save more money not smoking you will be more productive etc.with little to no use it probably would be medicine.but not when it replaces air.



  29. WRO on February 21, 2021 at 8:33 pm

    Cannabis stocks were about double last year…meaning the stocks lost about half of their value in 1 year. Canopy Growth was $50 per share, now $21 .



  30. Adrian Blackburn on February 21, 2021 at 8:33 pm

    meh. buying Bitcoin as an investment absolutely dwarfs any stock or investment out there.



  31. KingJustice98 on February 21, 2021 at 8:33 pm

    Tulip bubble, how obvious can it be?



  32. Jina Gibson on February 21, 2021 at 8:33 pm

    What if you’re family already invested, grew, died to make it legal and all these junkies want to sale is oil and other products to taint? What to do? WV was closest. I’m here. They cut my income to support drunks and life long junkies who use their income to make products look bad.



  33. german maradona on February 21, 2021 at 8:34 pm

    I have the best land in Costa Rica for this industry, either for sale or for rent, the best water and climate in the world.369



  34. Tetsu de Rothchild on February 21, 2021 at 8:36 pm

    https://edition.cnn.com/2019/09/10/health/vaping-outbreak-2019-explainer/index.html

    concentrated smoke like weed. it does not allow the lungs to heal.
    vaping dabbing and even regular ital smoking destroys ur lungs. only recently
    did folks start doing this all day long everyday. years from now like sunny
    delight the drink in England results will show what im saying.

    https://en.wikipedia.org/wiki/SunnyD

    In December 1999, according to a report by BBC News, the negative
    publicity escalated when a Sunny Delight television commercial showing a
    snowman turning orange was released, at about the same time as reports of a
    four year old girl who experienced her skin turning orange – due to the
    product’s use of beta-Carotene for color – after drinking an estimated 1.5 litres
    of Sunny Delight a day.

    Ginny pigs a?



  35. Teolulz on February 21, 2021 at 8:36 pm

    GET IN FOR CRASH VERSION 2.0



  36. Scott B on February 21, 2021 at 8:37 pm

    Check out blozf…making a reefer breathalyzer. …huge market



  37. Steven Yeager on February 21, 2021 at 8:37 pm

    Bitcoin may go up or down but it is not volatile at all. Everything will fluctuate from time to time. I have not seen bitcoin go below a dollar.



  38. Market Investing on February 21, 2021 at 8:37 pm

    Entourage capital is terrible. Look at their returns



  39. Alpha Status Stocks on February 21, 2021 at 8:41 pm

    Best pot stock right now https://youtu.be/9onhQzzU9og



  40. Blood Moon Comix on February 21, 2021 at 8:43 pm

    No, no! Let the states continue fleece the public!😕

    The black market will continue to grow and thrive out here just as long as this green rush retardation continues!

    Yay! More business for me!😄👍



  41. Jorge Perez on February 21, 2021 at 8:43 pm

    They should reduce taxes for small companies and raise them to a fair percentage on the big ones”



  42. Jamal Eddie on February 21, 2021 at 8:45 pm

    Thanks.



  43. instinct022 on February 21, 2021 at 8:46 pm

    This are called pump and dump, buy low sell high on a day trade. Tlry did crazy last year it went to $300 I think people got super rich..with 4000 shares for like 1 dr made over 1 mil



  44. scott Finch on February 21, 2021 at 8:48 pm

    Dude the Feds gotta fix this shit so Cannabis can be regulated and legalized Medically period.After they knock it down a schedule and legalize it Medically on a national level then you let the states decide on the Recreational side.That is more than fair.Opiates are killing people and Marijuana could help that some and that’s just one thing it could help.



  45. Sound Money on February 21, 2021 at 8:54 pm

    These cannabis markets have more volatility then Bitcoin.. no thank you.



  46. MAC AMILL on February 21, 2021 at 8:55 pm

    crazy how im working in a grow house in florida smh free em bois lockup in Fed



  47. Sam Rothstein on February 21, 2021 at 8:57 pm

    In the Netherlands, where Cannabis is ‘legal’ or tolerated, the Canna still comes 75% from the black market.



  48. WTF ARE YOU LOOKING AT on February 21, 2021 at 8:57 pm

    DON’T INVEST IN THIS CRAP,BLACK MARKET WILL ALWAYS THRIVE



  49. jacky jack on February 21, 2021 at 8:58 pm

    Is there a decent cannabis index fund?



  50. Brandkanne ! on February 21, 2021 at 8:59 pm

    Go ACB !