RE:RE:RE:RE:RE:RE:RE:RE:RE:The company statesthis is 100% the case as my local newspaper has been saying that the industry had hit the bottom two or so weeks back and was stating that it should be rebounding. That being said, companies will still need to figure out how best to look after their clientele and be able to not only recognize their preferences but also keep ahead of their ficklness in the recreational market. You still have an oversupply of cannabis and there are so many items that are being offered up in terms of edibles, infused beverages, food products like burgers etc.
I would love to say the market space has tons of room for everyone and theoretically it should where they find their clientele possibly their niche, however, when you have been seeing per gram prices drop from $15 plus to as low as $5 then you know that things are not looking so good and have industry and financial experts stating it looks to be a race to the bottom in which in the early 1990's that honor belong to lng and shale. Whenever there is an oversupply glut in the market and consumers know they can be fussy the prices to things drop heavily, so while trawel87 what you are posting is correct it does very little to fix the glut problem.
Where companies will likely come out ahead is partnering with big name players and brand recognition so if one is looking for burgers for instance beyond meat or things like that--you would need to partner with the heavy hitters, however, assuming that all raw bud when expertly grown is more or less the same then it still will mean that prices per gram will be racing to the bottom until the supply side no longer vastly outstrips the demand but it can't substantially lag it either which was what some had feared prior to this whole cannabis 2.0 and why the stock prices to some extent were trending higher--both an oversupply and an undersupply when needed are bad. And again the reason that i have said right now, in the recreational market people will likely get killed for a bit of time until things find an equilibrium--
however, not in the medical side of things--there are over 1,000 active compounds on the cannabis leaves and depending on how they are scientifically understood and processed differentiates the type of countless therapeutic treatments that can be derived from them. Even so, find those fully effective combinations and that too where you remove all the potentially harmful side affects to be able to use the crop successfully poses the challenge. Nevertheless, companies that do will be in a huge lucrative position--but they also need crop providers so an arrangement with strong pharma and natraceutical bodies may be the way of going but again with so much supply they can literally pick and chose who to utilize
Bottom line, for raw suppliers of the crop and those in the recreational space for the time being it is a losing proposition
For medicinial and with the right companies it is not that is where the money is most likely going to be right now.
Perhaps in those who rent out and consult in the space like xs xtraction services the only problem is that I am sure that any competitor can easily move in to fill that space as it doesn't seem anything spectacular in the sense other than understanding what people need in the industry and leasing it out--I was looking at that company to invest in but there isn't anything that someone else who is equally knowledgable can not replicate--you can't trademark or patent common knowledge and recommendations so what that space will boil down to is leasing or selling equipment at rock bottom prices which again will become cut throat as more and more people enter it.
I guess this is why management over here has suspended/abandoned pursuing the digester in this field--again, the only way this will work is to strike up a deal with a group of players who will work jointly together vs being opposing side of the coin--won't work that way.
Now when you think about what i am saying--just think for a moment and you go the Pharma way--that may be a smart round about back way in---pharma/natraceutical is where this market is truly at--they will be producing treatments products in massive amounts and will also have to dispose of them in an environmentally and cost effective way being seen as responsible and good corporate citizens--I can see this as being the sweet spot to resurrect the cannabis digester--think if you get someone like a Merc, Pfizer, etc any company that has massive amounts of drugs treatments being produced. India is known to be a very large producers of generic pharma.
You know, when coming full circle like this i begin to see that glowing light again, however, it will mean a round about back door in and will take more time and more likely a lot more share dilution but the digesters don't have to be dead quite yet.