Topic: How To Invest

The Successful Investor Hotline – Friday, October 18, 2019

Article Excerpt

MOLSON COORS CANADA INC., Toronto symbols TPX.A $77.70 and TPX.B $76.76,recently formed an alliance with Canadian cannabis producer HEXO Corp. (Toronto symbol HEXO). Molson now owns 57.5% of that joint venture (called Truss) focused on developing cannabis-infused non-alcoholic beverages. Truss plans to launch several of those beverages, mainly flavoured-water drinks, in mid-December 2019. The joint venture will initially launch six products, including drinks containing tetrahydrocannabinol (THC), the psychoactive compound in cannabis that produces a high. It will also make beverages containing cannabidiol (CBD), the non-intoxicating compound in cannabis with medicinal benefits that are remain largely unproven. Truss estimates that cannabis-infused drinks could eventually account for 10% to 20% of Canada’s overall cannabis market. That would help Molson offset slowing demand for its beers. Investors holding Molson Coors class B shares have less voting power to elect directors than those with class A shares. But the B shares are more liquid and receive the same dividend. OUR RECOMMENDATION: Molson Coors B is still a buy. Molson Coors…