Canadian Cannabis stocks are hotter than everAurora, ACB on the TSX, is at a record high with $220 million in buying today. Their value is now over $2 Billion along with WEED. HEMP on the TSX Venture owned partially by Aurora has seen more than $20 million in buying today and the stock has doubled. There are many others doing incredibly well in Canada including Aphria who just hit a new high.
The issue with LDS aside from lack of confidence in LDS management, remains the Federal regulatory environment. Investors from both Canada and the U.S. are reluctant to pay a market premium when they think their investment could be at risk. Either because the Feds shut someone down or their are exchange trading risks. When you combine these factors, we have Canadian producers at amazing levels, and american producers floating aimlessly.
Clearly the Canadian stocks are demonstrating that an incredible amount of buying could come into LDS or any of the American producers, and that valuations can be incredibly high. However, nothing can be done about the Federal government risk, but something CAN be done about management perception. They need to communicate properly with investors so trust can be established, and they need to post solid production and sales numbers.
If this happens, we have a fighting chance to see a share price rally. But until then, lack of credibility on the part of management and government risk are preventing us from even breaking 50 cents.
I want nothing more than to see this stock take off like my Canadian mj investments, but the trust in this management group is glaringly obvious in the share price when you have Canadian stocks rallying hard and LDS stuck near 40 cents. Regardless of what we banter back and forth on this board, the market is speaking for itself. And something needs to change.