RE:Shift toward extractionstealthct wrote: https://calgaryherald.com/cannabis/cannabis-business/cannabis-investing/feeling-burned-the-first-year-of-legal-cannabis-has-been-a-complete-disaster-for-investors/wcm/921aba0a-b563-441b-b82a-c33658404f9f
To summarize:
Critics say the sector is now trading on fundamentals instead of promise and that investors simply have not found the fundamentals worth betting on.
Some investors might be tempted to reinvest in the market leaders — Canopy, Aurora and Tilray — given how much their valuations have fallen, but Taerk sees a different scenario, in which Cannabis 2.0 results in new interest in cannabis oil extractors such as MediPharm and Valens GroWorks Corp.
Mackie Research Capital Corp. analyst Greg McLeish recommends investors shift toward companies that have a strategy to deliver new products such as vapes and edibles to the market. But because of a 60-day notice period, most of those products won’t be seen in the market until late December.
Some analysts, including McLeish, are also shifting their focus toward smaller producers, who they think have a better shot at outsized growth than the sector’s juggernauts, which they see struggling to regain their former highs, especially without the investor buzz that boosted their share prices in the past
“I think that’s gone,” McLeish said.
Until buyers see something compelling about OILS, it will be trading sideways, as there are no funamentals to look at yet.