Bullish on Oil, Pipeline Stocks, Long-Term Bullish on Cannabis: Todd Sullivan (Szn 4, Ep 27)

Published October 5, 2022

This podcast episode brought to you by Covey — Covey is designed to find, reward, and train the next top investment managers —from any background—that anyone can copy, so everyone can win.

Todd Sullivan of ValuePlays.com rejoins the podcast to discuss oil markets and the investment case for cannabis.

Sullivan’s call for $100 oil last year turned out to be prescient. Oil prices have retreated from their peak, but that will be short-lived, he says…

(This episode was recorded Sept. 22, before the recent rebound in oil prices. Premium subscribers get an early actionable highlight clip of the podcast along with earlier release of the full episode — and a host of other benefits. More on our Substack or Supercast.)

Content Highlights

Fears of ‘demand destruction’ have led to the decline in oil prices, but risks are tilted toward prices moving higher again. Production is not coming back (3:48);
How much of a concern is a slowing Chinese economy when it comes to oil prices? (10:14);
What about stocks? Sullivan continues to like pipeline companies… (16:00);
The investment case for cannabis: Overview (27:03);
The only thing that will unleash capital on the cannabis industry is decriminalization (31:46);
What to look for if you are looking to buy and hold cannabis stocks and two of the guest’s favorites (34:30).

More About Todd Sullivan

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Reasons for Optimism Amid ‘Peak Pain’: Kevin Rendino (Szn. 4, Ep 16)

Published June 9, 2022

Kevin Rendino of 180 Degree Capital joins the podcast to discuss reasons for optimism (yes, optimism) in markets and why we may have already reached “peak pain.”

The Coming Credit Crunch and Death of Unicorns: Leo Schmidt (Szn 4, Ep 11)

Published April 18, 2022

Leo Schmidt of River Eddy Capital Management rejoins the podcast to discuss the coming credit crunch, its impact on stock market sectors, and where to invest to protect one’s portfolio.

Content Highlights

So-called “unicorn” companies, or the darlings of the VC crowd, and others that cannot generate cashflow, will face a tough reckoning (3:17);
Undermining this is “a complete change of psychology” in terms of velocity of money (6:27);
What if the Fed reverses course? It’s not so simple (8:52);
Oil is a short: “Oil is the ultimate liquid commodity” but there is a place for pipeline stocks… (11:38);
What stocks can thrive in this type of environment? Look first to medical company spin-offs (19:13);
Another area to look: Business development companies, or BDCs. This is a risky part of the market but there is at least one BDC making first-lien loans, which are the safest part of the capital structure… (26:23);
Quick epilogue on China’s latest Covid lockdown. There are ways to play the move away from supply chain issues that result (35:58);