RE:RE:The absurdity of the marketStrongLong wrote: YodaLayhehoo wrote: Aurora Cannabis $54 Million in quarterly sales and a 240 million loss : 9.5 Billion dollar Comapny
Altagas $2 billion in quarterly sales and likely $300-400 millon yearly net profit: 3.7 Billion company
ACB would have to have growth of 37x their sales to match ACB. Impossible when there isn't even that much revenue to go around in the whole weed market quarterly.
I happen to be invested in both these companies so I can point out some key differences.
The global cannabis market is completely virgin territory. Aurora will grow its revenue year over year by triple digits for at least the next 3 years. The revenue opportunities in the global cannabis industry are immense and virgin territory.
You can't compare present day earnings of a company in a hyper rapid growth industry to a regulated utility without factoring in future earnings.
If you really think the cannabis industry doesn't have (37*60m) 2.2 bln in forward annual revenue total you have clearly done zero analysis on the subject.
I was invested in Canopy when it was Tweed and traded on the venture exchange in 2014. Did very well. ACB has a billion shares already for a "hyper growth company that will need to issue shares to grow that is not good. I also believe the market is more competitive than people believe. Also the supply of the industry is controlled by the government they issue contracts for a supply deal. The companies are restricted to those contracts which are small. With many producers. Big companies compete with small producers. Regulation makes a fair playing field where in the utility space regulation makes monopoly in areas for these companies. How would ACB ever pay shareholders anything with a billion shares? I see a reverse split in their future which is a killer. You also see their margins already compressed this quarter that will only get worse as supply comes online and prices drop. That is my opinion on the sector although I'm not a genius