Emblem Corp EMMBF

Analyst Commentary

[deminimis]

https://archive.is/VGQ1S

I don't think analyst targets are worth the paper they are printed on but I thought I would link to this one because I found this commentary very interesting:

"As competition intensifies, we believe that cultivation will become less important as cannabis becomes increasingly commoditized. We therefore believe that capital allocation towards incremental capacity will create less value compared to differentiating a company's strategy. The significant risks of ramping cannabis production have been evident as many LPs have struggled to achieve forecast capacity. Moreover, we see the potential for these challenges to be compounded as companies start cultivating in much larger facilities. As such, we believe there is a risk that LPs may not reach peak production estimates or find a market for product if overall industry capacity grows as forecast."

Kind of sounds exactly like the things Emblem has been warning about in its business plan doesn't it? This is why they are priortizing investment in a pharmaceutical production lab and securing the patent rights for sustained release formulations over investment in cannabis production facilities. While there is definitely going to be a cannabis shortage at the beginning of rec it is increasing looking like that shortage will be fairly short lived and quicky turn into a glut.