Tilray Brands, Inc. TLRY

Uninformed investors made uninformed, false assumptions

[Keeler]

The reason you've skipped US MSOs is because you have not done any research or made informed decisions.

Your track record of Newstrike, Zenabis, Hexo and Tilray reflect poor investment acumen. 

see below

Post by quinlashon Apr 16, 2024 10:25pm

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Post# 35992953

Why I Skipped US MSOs + Stuck /w Canadian LPs

Don't get me wrong with this post.  If you like US MSO's then go head over there, find one you like and invest as much or as little as you like.  There are certainly investors of Tilray Brands / Canopy Growth / Aurora Cannabis Etc that are also holding some amount of shares in one of the US MSOs, not me, but I know of some on this forum.

Here is why I opted to stay away from the US MSOs.

#1 - They deal in cash as they are not allowed to use the banks right now

This means if their cash gets robbed they are done for -> Game Over.  It also means there are unknown tax implications on that cash as soon as Banking is allowed.  There are recorded cases of Cannabis shops in the US being robbed at gunpoint and large sums of money going missing.  Unforunately these companies also do not qualify for any sort of insurance at this time so again, one bad break and the company could be crippled or taken out of business.

To suggest that US MSOs - with annual revenues of over $1 billion have piles of cash sitting in warehouses (or maybe under Boris's bed) is ludricrous. Think about what you're saying - it's nonsense, based on your uninformed opinion.

While most major banks DO NOT deal with the cannabis sector -there are literally hundreds of smaller financial institutions and creditunions that do. The process to get banking services is longer and frustrating - and the trip to deposit cash may take longer, but you're simply wrong.

What you're confused with is the banking services sucha s credit/debit cards - and that sales are mainly cash. There are reported cases of robberies of staff taking the deposits to the bank.  

You are uninformed in this matter

#2 - They are enjoying high retail prices right now / higher than realistic margins

The Canadian Market is fully legal and competition moved in to drive down prices.  Companies that competed on lowest price / lowest margin went out of business and / or were taken over by larger operations such as Tilray Brands and others.   Until the US Legalizes we are not likely to know which of the current MSOs will be able to withstand "REAL" competition and still operate successfully when the market sees real competition show up.

Again - completely uninformed.
California, a market bigger than Canada - that has been around for longer than Canada - is experiencing the exact issues such as black market and competition.
US MSOs adjust pricing to supply and demand and there's over production and too many operators in the US - just like Canada. 

Tilray experiences lower margins because Simple Simon has never been able to control costs - the industry average is 50% in both Canada and the US, Tilray sits around 34%. Margisn are calcualted based ont he cost to produce goods, not the gross sales.

You are simply uninformed in this matter

#3 - Canadian Producers have the necessary licenses to operate in the Medical Market Overseas.

Very very few US MSOs have access to Europe with the only one popping to mind being one which literally came into Canada to buy out small Canadian LP that had the necessary License.

Actually, very few Canadian LPs also have access to international cannabis sales. While it's true the US is more restricted with cannabis being illegal - Curaleaf is the largest cannabis operator in Europe - and have an EU-GMP facility in Portugal. They bought your 'Canadian LP' because the LP was already a supplier to them - they simply bought them out.

Zenabis - a Hexo company had EU-GMP certification, which accounted for 90% of Hexo's inter'l sales. Tilray lost Zenabis to SNDL thru bankruptcy 

You are uninformed in this matter.

#4 - Until the US fully legalizes many of the US MSOs are stuck in the US

Canadian LPs are dealing internationally, much more so than the US MSOs.  Canadian companies are "easily" entering countries like Germany, Poland, Isreal, etc.  While the US tries to figure things out Canadians are running the show on the international stage.

And Canadian LPs are largely stuck in Canada - a market smaller than eitehr New York or California. To be stuck in the largest cannabis market in the world, the U.S. - is hardly a negative. 

You are uninformed in this matter

#5- Comparing Fundamentals I am finding more appealing discounts on Canadian LPs vs US MSOs.  

This is a big topic but easy enough for anyone who understands to run the comparisons between whichever Canadian LP(s) and various US MSO(s).

If you mean Canadian stocks are undervalued and/or fundmentally better positioned - then again, you are simply uninformed and have obviously not any actual comparative research. Paint brush generalities are not research