Tim Seymour's cannabis picks

Cannabis sales are on the rise. A list of relevant stocks, including Hydrofarm Holdings Group (NASDAQ: HYFM), GrowGeneration Corp (NASDAQ: GRWG), and Green Thumb Industries (CNSX: GTII), closed last week in the green. According to Timothy Seymour, founder of Seymour Asset Management (SAM), several factors are at play here. For example, more and more states are legalising cannabis, and federal legislation is also in the offing.   

Seymour is a strong supporter of the cannabis industry, as reflected by his long positions on multiple stocks in this sector. Other credentials to his name include his role as an advisor for a number of cannabis firms. He is also a portfolio manager of a cannabis ETF.

Tim Seymour’s comments on CNBC’s Fast Money

On CNBC’s “Fast Money”, Seymour said on Friday:

The trader further expressed confidence that cannabis was a hyper-growth industry that will ultimately secure federal legislation that will pave the way for this sector to start receiving massive amounts of institutional money.

Seymour says these cannabis companies will be sophisticated CPGs

Seymour also highlighted that the aforementioned companies have noted an annualised growth of up to 60% in their revenue and have also turned profitable last year. Commenting on the risk side, the chief investment officer of SAM added on CNBC’s “Fast Money”:

On the weekly chart, Hydrofarm and GrowGeneration closed more than 10% up each on Friday. Green Thumb opened more than 1% down on Monday but recovered almost the entire loss in the next hour.