RE:Titanicskyplt wrote: It appears as though APHA is beginning to decouple from WEED.
Canopy Growth is like the Titanic, it's hit an iceberg and sinking...pulling all the other smaller boats down with it. We are so used to this company being the sector leader it is difficult to believe it has fallen off its perch.
At some point I hope an inverse relationship begins where WEED owners who want to stay in the sector attach their lifelines to APHA, VFF, or even ACB (I like the way ACB operates, just nervous about the number of shares they have out there).
Yep, WEED is taking on water at the pace of 1.28 billion litres a quarter. No short term fixes here. And they are making a big bet that beverages will keep them afloat. But half the country still has to get their legal cannabis delivered thru the mail. Can’t ship bottles thru the mail and I am not driving 165 km to my nearest legal cannabis outlet.
Aphria’s priority is the introduction of vaping oils and concentrates. They can be distributed just fine thru the mail and represent a segment that will provide superior returns and revenues versus the beverages and edibles. The beverage and edibles segment will be handicapped until cannabis retail outlets expand dramatically in provinces like Ontario, BC, Quebec.
Beverages and edibles will have steady growth with improved distribution. The bigger pot of gold at this time is vaping oils and concentrates. So lets mine that biggest vein first, nobody has limitless resources, focus on the bigger prize.