Buy Aurora Cannabis (ACB) . Buy it because Nelson Peltz is now an advisor to the company with options to buy 20 million shares at a minimum. Buy it because Nelson's contacts are vast and he knows consumer packaged goods incredibly well. Having been on the board of Heinz, being on the board of Procter & Gamble (PG) and a holder of 18 million Mondelez (MDLZ) , where he formerly was on the board, Nelson knows what can go right with cannabis, which you know I think could disrupt $500 billion dollars' worth of food, beverage and medicine.
Today's investment is really one of time, as he will now be a strategic adviser. CNBC's Carl Quintanilla asked me today whether I would rather have Martha Stewart as an adviser - she's with competitor Canopy Growth (CGC) - and I said they are both terrific but what matters is consumer packaged goods experience because that's what cannabis is going to replace.
I know that Nelson is fascinated by the medicinal properties chiefly as a replacement for opioids, the scourge of this country, but he's also aware of beverages, candy and cookies, the latter two right in the wheelhouse of Oreo maker Mondelez.
Not only that but Aurora, with an $8 billion market cap, may actually be cheap on the basis of estimated revenues with $232 million versus Canopy which is estimated to have $184 million in sales but is valued at $16 billion, and Cronos Group (CRON) which is estimated to have $85 million in sales for 2019 and is valued at $3.7 billion. But then again Canopy received $4 billion in cash from Constellation Brands (STZ) and Cronos got $1.8 billion from Altria (MO) .
No matter what I think now we have the big three - I am reluctant to say Tilray (TLRY) , the fourth, because of its convoluted ownership structure as well as the short squeeze that we experienced last year in the shares. Given all the packaged goods attention that Nelson believes will now occur, it's worth pondering whether if cannabis is as strong as I think it is as an investment theme all three will keep going higher.