The Thinning Of The Herd... I’m sure we’ve all been watching the proliferation of publicly traded cannabis companies with some degree of interest. Some of us are trading them, and some are looking for real, solid long term bets. Here’s a decent list to which i’ll add a couple…
Canadian Marijuana Index - Click Link
MYM
TER (Terrascend) - must admit i hadn’t heard of them until today
UMB
An interesting aside to this is the private companies who may come into play here, i would think we’ll be seeing some large moves from Privateer/Tilray at some point. Are there others who have the capital to be real players?
It’ll be interesting to see over the next year or so who’ll be bought out and who will fail. It’ll come to no surprise to anybody who reads this board who i’m betting on, but today somebody posted CGC’s jobs page with 40 listings. When we talk about scaling up, we place a lot of emphasis on square footage, and while that’ll be critical to build and maintain market share, i still firmly believe what puts Canopy in the pole position by a large margin is it’s early investment in people. Some cringe at the operational expenditures in Q4, but a good portion of that is going towards hiring the people that are absolutely critical to grow a real organization capable of meeting the challenges ahead. Canopy has listings for 40 people. Compare that to the employees in most of the others listed publicly. Granted, i have no hard data here, but i’m pretty sure most of them don’t even have 40 employees. Last i read, and this was a month or two ago, CGC had over 500. (Please correct me if i’m wrong, i thought i read it in an Ottawa Citizen article, maybe it’s a question for IR)
I’m wondering when the thinning of the herd will start, whether most will survive till the first year of rec and fail or be bought out etc, or whether the thinning will start sooner. I’d love to hear others opinions on who they see surviving the cull etc. GLTA