RE:RE:RE:RE:RE:RE:Pot Producers Implore Ontario to Open More StoresThis entails that everyone smokes pot. They don't. And if there isn't a legal channel for a novice to try it for the first time, there not going to. It's that simple.
The Pot Snobs and the black market are a very clear indicator at this moment. If the black market were marketable securities, they would be at all time highs and ripe for a short opportunity.
The biggest thing I am looking forward to as cannabis 2.0 rolls out in Canada, and eventually full legalization in the U.S., is the adults, entreprenuers, professionals can take over the conversation and innovation.
The sector is dominated by amateurs in every aspect. It tells you how early we are in this secular trend.
This market will look NOTHING like it does today in 10 years time. The product innovation is coming. The athletes, professional working class, and everyday non pot snobs will have choices of products none of us can even imagine right now. Ditto with medical delivery for disease presciptions we don't even know about yet. But the clinical work is being done today and will continue as research money poors in.
The days of "getting high" on premium flower will be the least attractive verticle in the space.
Premium flower will be priced for its medical and wellness characteristics. Everything else will be for your causual consumer that doesn't care about the details. I.e the mass market.
There is a reason beverage alcohol like Bud Light and Corona dominate the market even with 1000's of craft beer makers. At the end of the day, people have stuff to do and prefer convenience.
The capital markets are re-rated risk looking for capital effeciency. This is very much needed and quite healthy.
I'm looking forward to the next growth stage. / Very Long WMD