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"An It's Wednesday may fifteenth mocking market fuller. I'm Chris L? Joining me in studio. The one and only Emily flipping thanks for being here. Thanks for having me. It's warm here in the studio, and it's because we had a very heated discussion with producer Dan Boyd about pizza and bagels. And that's just that's just going to remain among the three of us probably just as well. That, that, that doesn't go out to the dozens of listeners. We've got some earnings. We've got some marijuana earnings. We've got some ecommerce earnings. Let's start there. Let's start with Alibaba fourth quarter revenue up fifty one percent. And I know we like to talk from time to time about the, the law of large numbers, but this is a four hundred fifty billion dollar company, and they are putting up. Surprisingly, big numbers, when you consider how big a company Alibaba is profits were higher than expected, that the stock is barely moving positively today. What why is that this, this seems like and you watch this company closer than me, but the seems like are solidly? Good quarter for a big company. Well, you've made a mistake and bringing me on today because Alibaba is one of the companies that I watched, but there's also a handful of other Chinese companies that have been reporting and we'll continue to report the next couple of weeks. There were earnings that we've seen Alibaba included have been outstanding in the market has hammered them. In fact, Alibaba not being down today is impressive within itself. So I'll eat Baba's kind of trepidation response by the market. I don't think has anything to do with their earnings guidance their business. It's really the macro situation right now. There is nothing. They could have said that would nothing within reason that they could have said that would make the market response. Very positively. But the fact that this is such a big company growing revenue fifty one percents. And they're seeing such an amazing growth, Alibaba cloud. I mean they really are doing everything. So we have the cloud business. Their management now says they're serving fifty percent of China's a rated businesses through their cloud business, and that's actually much smaller than I think it can be over the long term. So this growth to me is just the beginning, you'll see that seventy percent of the increase in active users were actually from less developed cities as well. So they continue to expand within the country and their partnerships are really starting to pay off Allie, Pai tau they push through thirty percent of Alamos orders. That's Chinese food delivery. So the fact that Alibaba is so spread out across the country in terms of business segments. In terms of revenue, just means that this is an amazing company and the markets, kind of sad response doesn't mean much to me. So it sounds like you think this is a buying opportunity because because the stock I mean. To widen. The lens a little bit. I mean this is a stock that's I think it's up about thirty percent. Maybe over the past year, or so, like, it's, it's had a pretty decent run. But, but it sounds like you think there's a lot of runway head of it. Well, here's a good testament to that runway Yoku, which is you could call it Chinese YouTube. It's Alibaba's video streaming website. They're still producing movies and TV shows, and guessing they're selling it to Netflix. So the biggest one in China right now I think I forget the name of the but, but it dropped on Netflix today. So if you're interested in going Netflix is probably going to be one of the first videos that starts playing for you. It's a Chinese drama that they purchased from Alibaba through Yoku. So the idea that this company has tapped out growth is a terrible misunderstanding of all the different levers Alibaba's still has to pull in their business. Let's move onto another of your areas of expertise and that. The marijuana industry which you cover here at the full couple of companies reporting to till Ray reporting first-quarter results sales were up, but their costs were also up. So their loss was definitely bigger than expected and Aurora cannabis. Seemed like it had a pretty good third quarter till race. Stock getting hit a little bit Aurora cannabis last time. I checked was moving slightly positive safe to say. Roar is if not the biggest player in this space, maybe the best known. Yes. Definitely till right and Aurora to the best known players in the space. You notice that revenues growth in general, is extremely strong in both these companies till raise up almost two hundred percent but it's only twenty three million. So it just reminder to people who are interested in this space that these companies bite their popularity and despite how well no. And they are they're still extremely small and. It's projected that till right? Being one of the best known companies only has about a five percent market share in Canada. And that might sound to somebody like, wow. They have so much room to grow. But that's just a testament to how fragmented the market is. And both of these companies are increasingly unprofitable, they're going to need to raise capital to continue operations, and that should not miss out on investors investors should be perfectly aware of the fact that share shareholder, dilution in these companies is not just a word. We like to say about why we don't like them. It's, it's a real threat. It's a real threat to people who are buying these companies so despite strong revenue growth. And you're if you're interested in looking into the cannabis base, there's a lot of other companies, a lot of insularity plays that you can get into that have a lot less risk and a lot less exposure than companies like Aurora or till Ray that being said partnerships are really key for about these companies moving forward. They are big players are well known player. So it's going to be important for them to continue to make partnerships. And they're both doing a good job of executing on that. So go back twenty five years or so you had a bunch of companies that made desktop computers, and they're all competing with one, another part of the reason Microsoft grew was because they weren't interested in making the computer they were interested in just being the software inside the computer hearing, you talk about the cannabis industry. It makes me think that investors shouldn't be looking at the growers, which are the obvious sort of first place to look, but instead, the companies the picks and shovels, companies, if you will that are looking to service, any of these companies, that are producing the marijuana, like what's one or two companies that you think sort of fit that space of they're not growing. They're maybe not as well known as till Ray and Aurora but these are worth keeping an eye on. Well, one company that is an active recommendation in marijuana masterpiece. Hear that? I'm a huge fan of is actually. N wave. N wave is interesting. It's been around for a while. They're dehydrates. This is like, I think it is the oven company, but I have a simple mind. So they're actually pretty well known in the cannabis space. But people think of them as just that the oven company, they sell dehydrates. That's kind of misunderstanding of their business model very early on the company figured out that they're not going to really make a lot of money by just selling this equipment to companies like till Ray and Aurora, what they're going to make money by doing selling subscriptions licensing. And so this aren't a license, these giving exclusive rights to use his equipment to companies like Tillery and that provides ongoing recurring safer revenue. So if you like a company like till right, a good investment is actually, probably in wave which is relatively insulated because they don't have the risk that Tori has in terms of actually growing having direct exposure to the price of marijuana, which some people argue is a commodity instead, they have predictable stable growing revenue. Well still. Providing some exposure to the space safe to assume that this is one of those industries that investors should think of in terms of the more volatile end of their portfolio the higher risk, and the reason I asked that is because I was just looking at the fifty two week range for till Ray fifty to three hundred dollars a share a low of twenty dollars a share that is one hell of a roller coaster, the hype cycle is real, and we've seen it a million times over and about every industry, you can imagine. I think three D printing probably comes to mind. So nobody wants to be buying three D printing at its very peak and same can be true for marijuana. The difference is, is that in the marijuana industry, icy strong underlying demand. So that's why I feel comfortable investing a lot of these companies that being said, you have to recognize that the reason they're so hotly valued right now is because the hype is extremely strong, and it's not a matter of if we see marijuana pullback. It's a matter of win. We see a marijuana pullback. So if you're investing in companies in the marijuana space, do not just by Pierre play companies, you are setting yourself up for disaster. We should be doing is taking a basket approach taking a long-term view buying companies that maybe are pureplays but combining them with companies that operate in the marijuana space that will see less of a pullback win the marijuana industry as a whole continues to fall restaurant Brands International having their investor day today. This is the parent company of Burger King Tim Hortons Popeye's, one thing out of the day that caught my attention was Tim. Hortons is going to be adding beyond meet up shins to their menu. That was come. I attended for two reasons. One just that had happened to the win. Tim Hortons was looking for plant based meat substitutes. They didn't go with impossible foods, which there, you know. Which Burger King has been doing with the test of the impossible Walker. So clearly Tim Hortons, if anyone was wondering, oh to all of these restaurants under the restaurant Brands International brand. Are they all operating independently? Yeah, they absolutely are. But I'm curious where you see this space going because I this is also a day or two removed from impossible foods outing. They've raised another three hundred million dollars in venture financing. I think the total that they've raised now is somewhere in the neighborhood of seven hundred fifty million dollars. It seems like"
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