RE:RE:motley goofslongonMJ wrote: Even though I am long on a few of the bigger MJ stocks, what numbers are you looking at to say that there will not be an oversupply issue ONCE all of the 100 or so LP's are up and running in the next couple of years from now. CBW alone is expected to pump out well over half a billion grams a year by the time they have all of their streaming partners up and running at full capaciity.
Especially when the expected output from these domestic LP's (if some of the smaller ones are still around that is) will amount to absolute billions of grams of MJ product on a per annum basis. Any yet forecasted total sales revenues from even the big boys like Aurora are only running around $70M for all of 2018 and then increasing to the mid/high $300M for all of 2019. I believe the numbers for Canopy are definitely higher than this, but not by much.
And these would include sales from all of their various product lines plus both domestic and their international sales. And a key point here is that this doesn't take into account crop productions from international growers who are bound to enter into this marketplace as legalization picks up steam in other countries also.
slick555 wrote: motley fools artical about oversupply...are these guys completely useless ..i think they managed to suck and blow at the same time in this article
You're probably the guy that wrote the article so I'll try to explain why you're so stupid. Just because an LP has a license to grow marijuana doesn't mean they'll be able to sell it. If you've been tracking the MOUS with the provinces you would see there might be 12 to 15 LPS that have Supply deals. That means the other 80 or so have no where to sell. All dressed up with no place to go if you will. Bruce is on record saying that he expects to sell 200 million per quarter once recreational becomes legal. When he gave this number he was only speaking about Canadian recreational and medical sales. As much as everyone here is waiting for recreational marijuana to become legal expecting it to be a big move for canopy which it will, medical cannabis will be the gorilla in the room. The margins on disease-specific or symptom specific medicines will be much higher and simply selling dry cannabis. The 200 million that Bruce mentioned did not include edibles or drinkables. As cannabis starts to overtake the alcohol Market, which it will , if for no other reason then it will provide the same type of Buzz as beer wine and spirits but without the hangover or the calories, the revenue will become crazy. If you doubt that cannabis will overtake alcohol then I guess you know more than constellation brands does . They invested a quarter of a billion dollars into canopy knowing what was coming down the road . Terrific foresight on their part . You'll forgive me if I put more credibility into their research then I do into yours . Do you know what the global market is for opiates, sleeping pills and other medicines that Cannabis will be replacing. Google "Christina Sanchez marijuana" and see what cannabis is going to do for cancer treatment and maybe that will open your eyes to the potential of this industry or you could keep regurgitating information you get from poorly researched and poorly written articles. You and the author of that article if you're not one in the same person are very short sighted and can't see the Cannabis industry as the global Juggernaut it is going to be. Feel free to stop back in when the stock is at $100, $200 and $300 and try to tell us that there is an oversupply problem. If you're going to come on boards and try to make negative comments at least understand the industry you were trying to talk about.