It’s still early days in the cannabis sector and that goes double for edibles and cannabis-infused beverages, which have yet to come online here in Canada. But one company that could become a major player is California-based Tinley Beverage Company (Tinley Beverage News, Stock Quote, Chart CSE:TNY), which has traded sideways for the better part of a year.
Bruce Campbell of StoneCastle Investment Management says it could be the case that the market is still playing catchup on this potential industry leader.
“What we need for mass adoption [of cannabis beverages] is for the delivery systems to come in-line, and that’s one area that we’re watching,” said Campbell, president and portfolio manager at StoneCastle, to BNN Bloomberg on Friday. “I believe that Tinley is working on those areas.”
“Effectively, what you want is to have an alcohol-like profile but through cannabis, so you’re going to get the onset in the same amount of time that you’d expect with alcohol and you’re going to get the offset and you don’t stay high for eight hours, that it’s only a couple of hours before it wears off. This is what delivery will bring,” he said.
With a market cap of $54 million, Tinley flew up the charts in the first big cannabis wave that hit in December 2017 and January 2018, climbing to almost C$2.00 per share, but the stock dropped just as quickly and has traded primarily in the C$0.50 to C$0.75 range ever since.
And where it will be another few months before Canada opens the door to edibles and beverages, the world’s largest cannabis market in California has been maturing for a number of years now, while still only representing a tiny fraction of the overall cannabis market.
“Tinley obviously has a really strong management team,” said Campbell. “They have people that are experienced on the beverage side. This is one that we have on our radar right now. We don’t own it but we’re certainly watching it because we think that as the beverage side starts to really take mass adoption and become mainstream, a company like Tinley has the opportunity to really take off because they’re leading and in beverages.”
“But we need the market to catch up, to a certain degree. They’re probably real trailblazers and innovators but being in the market ahead of time makes it difficult for them but eventually they’ll be in the right spot,” he said.