RE:RE:Sad day for the industryLeafRider wrote: mathandmass wrote:
Even if half of that report is true it is a real disaster. Not just for Aphria but for the sector as a whole. People are already worried about overvaluations, inadequate revenues, crippling regulations and taxation, as well as general (and rather realistic) possibility of recession. SEC will investigate, freeze will be activated, class action suits will rain down on Aphria. If it was a small company - no big deal but this is one of top 3. So, the government, as it always does, will jump on the opportunity of some free populism. Under the banner of protecting the average joe they can launch investigations into acquisitions in the sector (which let's face it, were already not without flaws), stock promos, etc., create additional legal roadblocks, jump on any report and anonymous about other companies. In that climate, the coyotes - no-name layers from hole-in-the-wall associates will just drown the sector with manufactured class action lawsuits (and there is no shortage of disgruntled investors with big losses in the sector). TSX is happy to take any money and they've been allowing anyone and their grandma do an IPO. The quality of half of those companies is just ridiculous. And the weight of the weed sector on the general index is already very significant. On the world's worst performing stock exchange... I hope I am wrong but I have a bad feeling about this. Very bad.
If you actually focus on the truth and real news and projections you'll see that the entire sector is grossly under valued. People somehow have started listenting to the US Fake news distribution and it's rampant right now. They support the BS everywhere even MSN, CBC, and obviously US media outlets. They just had all these guys on TV this week saying that US cannabis companies are superiour at thist point in the process. Okay like clearly they have no clue what the regulations are like up here, the US companies are scrambling to gain a piece of the market and that is what this is. Those who get spooked will lose their money, those who accumulate on drops will see riches! Buy early tomorrow you'll be disappointed if you don't.
What market share? US companies will not be allowed to sell in Canada and vice versa. Not for the next few years for sure. The combined capitalization of US weed companies has already surpassed that of Canadian companies (there was a report last month). US is also a better market because it has 10 times the population and they are legalazing gradually without overhype, state by state. California alone has more population that Canada (not to mention 8 other states with legal cannabis)! So, trust me, our market they do not need. Also US is a lot more logic and business friendly with laws (and not a socialist country). Sadly, the way it was done in Canada will probably be an example of how not to do it in the economic textbooks of the future: first create a bubble with legal delays (1 year to pass the laws, sales to start only a year after), then cripple the sales with OCS model with dependence on Canada Post and the ridiculous changeroo on private retail (no private retail, yes private retail, but only in 6 months, and one store per producer) + the Canada Post timely strike - that's how you pop the bubble you created. It really is a circus here. I've been watching it for 2 years now and I have no words left. I think if a class of 4th graders we're tasked with legalization they would have handled it better.