OTCPK:NCNNF - Post by User
Post by
flamingogoldon Mar 10, 2020 10:38am
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Post# 30788145
Over reaction
Over reactionThe cannabis sector took an unneccessary leg down during this latest selloff. Let's quickly review:
1. This corona virus does not make the current cannabis buyer consume less. It also does not dissuade potential new consumers from entering the market. To sell shares based on this virus does not make sense.
2. The oil crash, while it willl result in layoffs, job losses and potential bankruptcies in the oil sector, this will be offset in 2 ways that puts more money in consumer pockets.
First are rate cuts. The FED and BoC have already cut by 1/2pt and will cut again this month another 1/2pt at least.
Second, expect governments to introduce bailouts and relief plans for both businesses and taxpayers. Trump is already working on a plan.
Also, I do believe that much like booze, weed is somewhat recession proof. For sure those that use it medically are not going to cut back at all. And those that use it recreationally now have more money in their pocket as outlined above to play with fun stuff.
Our biggest concern right now is a market over supply issue. Second, is the confidence in this team. Hopefully this latest move at least addresses the latter.