Cannabis extraction is high margin businessNice close today but It is still a great buy under $4.
During the Gold Rush, the ones that make the most money are not the gold miners, but the ones that sell the shovels to the miners.
the Green Rush period (booming pot sector) we are now experiencing is in a similar situation.
Note that growers are not gonna be profitable due to the high competition. The only ones that will make lots of money in the cannabis industry are these leading extraction companies.
Cannabis extraction is extremely lucrative business with low level of compeition. The leaders will cover most of the market share and experience extremely high growth period
One principle of Warren Buffet's investing philosophy is to buy companies with a MOAT.
Now Valens (VGW) and Medipharm (LABS) are both exactly building huge MOATs in the extraction space.
Investment opportunity like this is very rare. Grasp the opportunities tightly when they show up imo.
Note that I say INVESTMENT. I am a trader myself but I am going to treat my Valens shares as investment / long hold. I plan to buy more shares if we see another pullback / dip buying opportunity
GLTA!!