RE:Pot Politics... Great read.Great informative post Leaf. You nailed it as usual. I have no doubt that Tetra is about to break out and TBP is the one stock to go long and hold onto; why settle for a 3-4 bagger when it has the potential to be the next GW Pharma which has an SP of $132 USD. Happy New Year all!
LeafRider wrote: https://www.bnn.ca/pot-politics-a-look-at-the-provinces-legalization-plans-going-into-2018-1.954826
- This is how rec is playing out in Canada. The more I read into it the more it feels like Tetra will ultimately have more upside on the pharma/drug side of things vs. competing in the very restrictive landscape that the Licensed Producers (LPs) will need to deal with in order to generate a profit. Sure the clinical side of things is very challenging and has it's own regulatory hurdles to overcome, but Tetra is the company looking to take this on first and becomea leader in the sector.
The other side of things related to the Canadian rec market, is that I have little doubt that if the black market can undercut the pricing (and they will), the forecasts for demand will be far less than anticipated. Point is I'd rather avoid the oversupply problem down the line and be invested in Tetra who will be selling cancer drugs to patients across North America (NA) and Europe.
I believe that there is some risk showing up now in the price per gram vs. the cost per gram for some of these companies. The key for the producer that is starting off with Tetra's ACMPR license will be to access some capital quickly and scale up capacity to ensure profits can be obtained in a market that will eventually become over saturated.
As a smart investor, if there is ever an opportunity to invest in a simple middle man supply channel for the cannabis sector you would become filthy rich, oh wait in most provinces that will be the government themselves. Almost like a grain trader, but you're a "medical cannabis / pharmaceutical sales person". The article was a really good read to help better understand the highly restrictive "recreational" market that varies across the country, and quite frankly the Liberals have made a huge mess out of this, but it was the only way this thing could be fast tracked for Trudeau's government... Get all the provinces on board and this thing will succeed. Trudeau's potential 2nd term will depend on how well this goes. If it crashes and burns Trudeau's gov't will go down with it.
The crazy thing here is that Health Canada and for that matter the Trudeau government is eventually going to promote the medical side even further and draw attention to the companies that are placing science behind the medical claims... AKA Tetra Bio Pharma. Tetra currently is an will be even further pumping and exploiting the benefits of cannabis. Something that will now be legal to study and explore. It's a very complex plant and I feel Tetra is setting up the dream team for drug development and plan to try and keep this all going for a very long time. Someone has to administer the clinical trials, and hopefully these things start to become alot clearer on where Tetra fits within this complex business model that Tetra has. I'm hopeful the vet/pet market ends up padding our wallet as well, but there's never time to talk pet beneftis when we're talking human clinicals.
Selling off the GrowPros with the terms started is a nice clean move to stay involved yet ensure you stay supplied with Cannabis in the event Aphria can no longer offer qualified cannabis. Yes we are big on the relationship with Aphria today, but you just never know how this plays out. It's just smart business, and if we're over $2 by end of January, I wouldn't be surprised. There's just way to many "potential dollar signs" hanging over Tetra right now. Sales will prove what Tetra is going for, sure everyone needs to take a profit at some point, but selling too early will cost you huge gains over the long term, believe me Canopy didn't go from $2 to $32 in 3 years on nothing, Tetra may just be the next big thing. Is $10 a share out of the question 2-3 years out?
This article does another thing for me when I read it. I get the feeling that this is like, "hey look at us we're a government that wants to profit off of medicine disguised as a recreational drug". At some point I feel defined drugs like PPP001-005 will eventually pull away from simple dried cannabis in the form of bigger and more profittable margins. These drugs will be prescribable and repeatable, consistent product, and patients will one day have faith that Tetra is delivering a very compliant product. Ins. coverage is a powerful thing when it comes to market cap.
I can't stress this point enough when I say Tetra will be on the wall of a lot of investor groups walls in the next 2-3 months. I'm really excited for Q4-2018 sales reports. I'm not sure just yet where we'll be on share price, but if we can get to $1 million revenue per month, by the end of 2018, that would definitely perk up some ears in the investment community. Sure that's not a lot but remember most your LPs are running millions in losses at the moment.
Tetra is only worth about $130 million today, something seems like this should be in the same category as RTI or Namaste and at the very least will be by Q1-2019. I will hang around and wait it out. Remember what matters is that Tetra, Panag, Constance, Intelgenx, AES Environmental, Aphria, etc... are all working in the same direction and want to make piles of money related to selling various cannabis product. Wouldn't that be a nice touch if Tetra's team helped define medical devices that smoke / vape product. From the little I know is that Tetra is working on concepts for items related to air purification systems with AES. IF they ever announce the commencin of sales of a further devices outside of PPP001 this is a great sign for shareholders!
Tetra wants to qualify proprietary cannabis based drugs for distribution to doctors and pharmacies in NA, but also internationally. Tetra has developed a few OTC products that are on the verge of launching and becoming available through our pharm partner. These products in a legalized framework become highly sought after product, expecially because the average joe will be reaching out to doctors and pharmacists for direction on which cannabis products to use. There is no doubt this is the market Tetra is going after. Always keep in context what Constance's cancer treatment drugs, Topicals, Pure CBD based drug solutions will bring as a benefit to Tetra since Tetra has the rights to distribute said products in Canada. It's a perfect small scale match that with dollars behind it, could explode onto the scene.
Happy New Year, all the best, when you think of selling because you've made some money on Tetra, reconsider your sell strategies, and hold long term. The upside potential is just too large to sell this early. Cheers!