One of John Lem’s first hints that the technology behind his DNA-testing company Spartan Bioscience could be a hit with cannabis users came years ago when an executive asked him if genetics could have caused a bad reaction to pot.

The question intrigued Mr. Lem so much that he eventually applied Spartan’s technology to a new Toronto-based venture called Lobo Genetics.

Value is not exactly synonymous with the cannabis sector, but if there was a value play in pot, then Quebec’s HEXO (TSX:HEXO) would be it. As of writing, HEXO continues to lag its peers in terms of its valuation, trading at just eight times forward earnings before interest, taxes, depreciation, and amortization (EBITDA) compared to 15 times EBITDA for mid-cap cannabis plays and 40 times EBITDA for the large-cap names.

But before we tackle the reasons why HEXO is trading the way it is, let’s quickly recap some of HEXO’s attractive properties.

Province Brands filed the provisional patent for the “world’s first beers brewed from the cannabis plant” in July 2017, further stoking interest from the drinks industry in the burgeoning cannabis industry since Constellation bought a 10% stake in Canadian marijuana company Canopy Growth Corp for £141 million with plans to make cannabis-infused drinks.

Although Canada’s lawmakers legalised recreational use of cannabis earlier this year, the country’s edibles industry has yet to become legal, causing a number of false-starts for small businesses and leading many manufacturers to sell their products illegally online.

Cannabis stocks, already bolstered by wins in the midterm elections, got an added boost when anti-pot Attorney General Jeff Sessions announced his resignation Wednesday afternoon.

Exchange-traded funds that track marijuana stocks, including the Horizons Marijuana Life Sciences Index ETF in Toronto and the U.S.-listed ETFMG Alternative Harvest ETF, jumped to fresh highs on the news, gaining as much as 9.1 percent and 7.9 percent, respectively.

Tilray Inc. posted the biggest increase, climbing as much as 34 percent -- the most since Sept. 19, when the stock almost doubled before giving back most of the gains in a wild ride for investors. Other cannabis-related stocks in both the U.S. and Canada also advanced.

Canada stood at the center stage of investors' attention for months during the lead-up to the country's legalization of recreational marijuana in October. But now there are two emerging opportunities that could be much more significant over the long run.

Second Cup Ltd. has identified more than 20 Ontario locations that it hopes to convert into pot shops as the coffee chain undergoes a strategic review, according to its chief executive officer.

Through a joint venture with National Access Cannabis Corp., Second Cup is already planning to convert two of its Alberta locations into cannabis stores and hopes to open several more in Ontario, where the government will start accepting applications in December. For now, marijuana sales in Canada’s most-populous province are limited to a government-run website, with the first stores expected to open in April.

Today we have identified three Canada-listed cannabis stocks that recently made acquisitions that were funded by equity issuance and that consequently led to existing shareholder dilution. Although existing shareholders own a smaller percentage of the company after the dilution, in the long run they may actually benefit if the funds are deployed efficiently. If the funds are used to conduct M&A activity, for example, the acquired company may provide an earnings boost and create value for the parent company, in which case the issuance of equity was in the best interest of shareholders. All metrics reflect closing prices as at November 5, 2018.

Canopy Growth (TSX:WEED)(NYSE:CGC) is up more than 20% over the past week, and investors are wondering if this is the start of an extended rally to new highs or simply a bounce ahead of more downside.

Let’s take a look at the current situation to see if Canopy Growth deserves to be on your pot stock buy list today.

I have been commenting that a market correction was likely in October and the marijuana licensed producers (LPs) were overvalued. This is why I had no new stock picks in October and only one in September. Patience is a tough discipline for investors but it most often pays off. I will now start adding some new picks to our list. Now is the time to buy as the Marijuana Index just bounced off the lowest point of the year (close enough) and has started a new rally. Major stock indexes have bounced off support and are in rallies as well.

With cannabis now officially legal in Canada, the floodgates have opened for any and all hybrids involving weed and there are a lot of incoming options if you aren't a smoker. Though one of the most popular impending hybrids has to be a marijuana-infused beer which promises to give you a high similar to the feeling you get while drunk, without the hangover in the morning. 

That claim alone has interested hundreds of Canadians in the company behind it, waiting for an official release date on the product that has been in the works since 2016. Thankfully, the brand is releasing one of their products in the very near future.