RE:RE:RE:RE:RE:Market Consolidation - Good Read - Beware the New RisksMy take is that these companies are aggressively expanding so they have greater appeal for take overs. Its possible not all of them will get bought out. Some big pharma/tobacco companies might want to start their own companies from scratch, but the ones who get bought out will be winners. Those who don't get bought out will have a very difficult time paying for all the expenses and will have to keep diluting their shares to keep pace with the billion dollar companies. Investors will start to bail on the losers and they could very well go to zero, or get bought out at a low price. Its also possible the 'losers' might try to merge and compete. It should be an interesting year. I've always traded a single LP at a time, but I think the best strategy next year will be to spread the love among all the LPs and hope the majority of them get bought out at good prices. I am still bullish on the sector there is no doubt about it, but I think next year there is a greater mystery factor. It won't be like last year where it didn't matter which LP you bought you made money. That is the big difference imo.
progrow3333 wrote: Could you please share your view on how big pharma/tobacco would negatively effect cgc? I just don't see the downside. Unless Health Canada speeds up the license process temendously, the only option for big fish is to acquire a company. Smaller companies still have limits on licensed grow space. I just don't see how a company can come in and leap frog. If legalization doesn't happen, that's a different story. Judging by the massive planned expansion by pretty much every LP, I would say there's a poor chance of legalization not happening..I would think they have a better grasp on the behind the scenes happenings than you and I.