RE:LPs Better than MSOsquinlash wrote: Let me start by saying that for sure some of the US MSOs are going to make it and I'm not bashing anyone's decision to invest in one
IMHO the LPs like TLRY (and others) are the safer bet with the cannabis Sector. This is based on my view of how the market has matured in Canada and competition has compressed consumer pricing. The LPs today have matured as well, their expenses have been rained in and spending has become much more strategic, especially in regards to positioning for US legalization.
US MSOs are still enjoying grossly higher consumer pricing and margins which are temporary IMHO. Upon legalization the LPs and new US competition will come online in relatively short order. The added market pressures will be reflected in the reports of the MSOs and will eventually mean margin compression + lower revenue growth.
Fundamentals on the LPs are dramtically more attractive as well vs MSOs and represent opportunities worth researching for investors with a keen eye for market mechanic opportunities
JMHO
I should add that the Canadian LPs also have ready access to overseas markets which is often overlooked (IMHO) by investors.
TLRY has agreements in place with 20 different countries while the majority of US MSOs have none. In the case of Germany TLRY has Tilray Medical I country and is one of very few north American companies positioned to take full advantage of cannabis legalization and rollout taking place over there