RE:Help me understandSure, read this:
https://www.ctvnews.ca/business/marlboro-maker-s-canadian-cannabis-investment-2-4b-for-45-per-cent-stake-in-cronos-1.4208714 It's pretty simple. Stocks trading in this sector are trading at values based on
future potental.
A multi-billion dollar infusion and partnership with one of the world's largest tobacco Co's is not only significant, it's a historical milestone, and this partnership shows the probabilty of
much higher revenues in the future relative to their peers - Regardless of current revs.
Concerning FIRE, aside from recreational supply (where they are a leader as far as quality), they don't have anything exclusive in the near future that would indicate a multi-billion dollar valuation; No medical supply deals, no deals with big beverage ( like HEXO, or CGC), and no deals with tobacco - And so their market cap is based on their apparent future, which is revenue from only recreational, where they'll be competing with literally dozens of other small Co's.
JamesReady wrote: How Cron has a MC of over 5Bil but we are sitting at a MC of less than 500mil. I know assets play a roll in valuations but their revs are similar to ours and we are doing a a better job executing. How can we not be sitting at at least 1Bil MC with everything we have going on?