Legal cannabis has had a wild ride on the public markets: while some cannabis companies were being valued at 20x sales, operators in other sectors like energy and resources saw their market caps shrivel.
Now that cannabis is teetering on the edge of correction and oil is making a modest price comeback, investors have a place to throw their hard-earned dollars that won’t shrink their investment by 50% in case short sellers finally prove the cannabis sector, like the proverbial emperor, isn’t wearing clothes.
Companies like Permex Petroleum (OIL.C) are geared up for the next energy supercycle, having utilized the downturn to pick up some tasty distressed properties on the cheap. Combine that with the company’s on-going oil production and you have a small cap junior with lots of room to move up the boards.
Equity.Guru’s Chris Parry spoke with Permex CEO, Mehran Ehsan, to get a closer look at the company’s assets, the energy sector, Canada’s unique predicament when it comes to oil exploration and where investors can expect the Permex to move over the next 12 months.
Full Disclosure: Permex Petroleum is an Equity.Guru marketing client.