RE:RE:Apha fraud is to blame for these harsh sp
Aphria may be one reason but more of an excuse than anything. Most are way overvalued to begin with. In any other sector, unless you're a proven revenue generator, you can't get away with P/E of 10. For most cannabis companies, easy target to short once legalization arrived and exposed them.
Many investors were saying that the quarter after legalization, companies will bring in meaningful revenue but that doesn't seem to be the case. I've looked at a few because some of my friends invest in a whole bunch of MJ stocks and also BE. Seen a lot of promotions of BE over the years and its resume is pretty impressive. I got a few fellow investors that said if any company that was in position to take advantage of when legalization is here, it would be BE. When I looked at their latest presentation, still a couple of quarters away before good revenue rolling in if things go as planned, and not the 1st quarter of 2019 like many had thought.
Biggest issue for many companies? Growing space. They can have all the licenses they want, but without growing space, just sitting ducks. Most won't be able to sustain, if they don't have enough for sale. According to the list in BE's presentation, only a handful got decent growing space, with BE being one of them, just not ready. Good thing Ontario isn't open for business until April or else it would have been much worse.
Will be interesting to see. The 3 levels of gov't in any province rely much on cannabis for their revenue and this had to happen. There must be empty lands laying around owned by the gov'ts that can be put to good use? Even cheap rents work also.