Friday, December 22, 2017

A View of Canada Now as an Investment Jurisdiction: Marijuana and Bitcoin "Investing" Haven...or Lottery Tickets

https://www.bloomberg.com/news/articles/2017-12-22/bitcoin-marijuana-stock-crazes-take-root-in-canada-s-wild-west

Now that Canada is officially home to two of the largest publicly traded bubbles, it's a question of when the bubble bursts(real estate is the third, but more so on a residential basis, yet the REITs sector is not trading at "dot com-like" euphoric multiples and actually have cash flow).

Thanks to the very sub-par listing rules compounded by a relatively new exchange (the Canadian Stock Exchange, the "CSE"...or the C as in "Can't go anywhere else"), speculative and sinister business ideas are receiving funding and having their 15 minutes of fame.  More eloquently,

"...Two features make Canada optimal for overnight sensations and crashes: easy listing requirements and hundreds of "zombie" shells that are already on the exchange providing market access via reverse takeovers and other backdoor shortcuts to listings..."

Also, the following reminded me of the scene from Spinal Tap when the band manager, Ian Faith, was asked by the mockumentary film maker Marty Di Bergi (Rob Reiner) why the band was playing smaller venues, was it because their popularity was waning? To which he replied, "Our audiences are becoming more....selective".

“...It’s not that our listing standards are lower, but they’re tailored to those companies that are still in that venture stage and growing," said Brady Fletcher, who heads the Toronto Venture Exchange..."



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