RE:RE:RE:Bruce LintonJonzeeee wrote:
what's the lesson? Bruce and shareholders got rich? Acb lesson currently- management gets rich and shareholders get nothing.
Perhaps yes, the CGC shareholders grabbed some profits (I did) but look at how the SP has gone from $70 to $40 .... and I don’t see any near term catalysts that will send their SP back up. So I sold my position and I’m not looking back. Canopy will be run by Constallation from here forward, and I’m not so confident those folks know what they’re doing in the Cannabis space.
Aurora on the other hand is still executing on exactly the strategy they laid out from the start. Maintaining 100% control of their business, and focusing on the medical side, which will be the real money maker in this industry in the long run. Edibles and such will also be big, and ACB is also exciting on solid production plans on that front also. SP is lagging for a couple reasons, neither of which have anything to do with the business fundamentals. We are lagging on SP because of dilution, and market psycology. Dilution we are all very familiar with, but in time, as positive Ebitda is achieved, and eventually actual profits once full production is reached and price per gram gets below a dollar, dilution will become less of an anchor. ACB respects its shareholders, I believe that, and I am confident that when the cash flow allows it, they will buy back shares and start to reverse the dilution scenario. It was a means to an end and had to be done to get the company built and running at capacity in record time... WITHOUT selling out to a corporate machine. As for psycology, people are just so uncertain about the industry as a whole. It takes many years for something that was illegal for so long, and has so much stigma attached to it to become fully accepted in society. The mindset is changing slowly but surely, but it’s still not where it needs to be. We will get there though. Right now, some major finanacial institutions are investing, but many others are still sitting on the sidelines. Lastly, we must also consider the very powerful forces that are lobbying against Cannabis. Namely the Pharma industry. They stand to lose a great deal of money of Cannabis is found to cure or relieve X, Y or Z illness... Pharma spends billions developing drugs with lots of side effects to treat all kinds of stuff, and Cannabis, a natural occuring substance with no adverse side effects, could eventually replace some of those drugs. There is a lot of mid-information about Cannabis out there, and a lot of big business interests in the media putting out negative articles and broadcasts every day to try to devalue the entire sector. Not because they want it to fail completely, they know that will never happen. Their goal is to destroy the value in these large LP’s so they can buy them up nice and cheap.
Ive said this for a long long time now, since I first invested in the sector back in 2014/15... Pharma will buy up this industry. As soon as the US delists Cannabis as schedule 1 substance, the flood gates will be open and the real big money will rush in... It is simply a matter of time.