Emblem Corp EMMBF

RE:RE:Canada’s great pot boom could be headed for a giant bust

[deminimis]

The headline is certainly sensationalized but the content is actually very good. 

1) we aren’t just talking about the next 365; it's only the beginning 100% agree but most other stocks are priced for perfection, how will those stocks fare if results come in far below expectations in year 1? Do they have the economic resources to continue on if results come in much lower than expected and the capital taps are turned off? 


2) how many moonshiners still operate around Canada - the public will flock to buy legally - who want to continue to play the illicit game when you can have it delivered to your door. Alcohol prohibition ended almost 100 years ago and moonshine is significantly harder to make and legal alchol much easier to obtain than dried flower. Washington state started with 1 store per 400,000 people and very few people switched from the black market at first. ON/QC/BC, home of 75% of the populaton, will have a slighty worse ratio to start. Yes, there will be online sales but how smoothly do you think that will go consdiering order fullfillment will be up to government employees who have never done this before? Don't expect amazon prime same day delievery. The black market will be a more convenient option for some time to come. Also, alot of people will want to use products that won't be legal for another year so going through the legal maket isn't even an option. Those looking for top shelf product will likely continue getting it from their current source for quite some time as well.

3) It's obvious the author doesn't use - yet; non users have no idea how big this is going to be 100% agree that the long term opportunity is huge but the point is there are going to be major headwinds for the next 2 years at least. While it may not be a sexy strategy I think Emblem is positioning themselves very well to deal with those headwinds and be successful in the long run. As usual, I think the majority of investors are going to get crushed while a smaller group of savy investors will make out like bandits. I hope we are in the the latter group but only time will tell.