As Cannabis Field Narrows, OGI Standing Out
Hexo,Tgod, Trst, emh ... these are the most notable cannabis companies that have not recovered from the lows of earlier this month. And in fact continue their downward trend owing to several factors, including poor management. Expect some of these and more (can anyone say Tilray ... remember when they hit $300? Right. Now below 24). This is the natural course, the Darwinian evolution, when new industries are created. Look at the automobile industry in the early 20th century. A whopping 485 manufacturers threw their hat in the ring in the 1910s. And how many can you name today? Buyouts, mergers, bankruptcies; this is what laid waste to almost all of these companies. We are seeing something similar in the cannabis space. Winners are suddenly being clearly separated from losers. And the more companies that fall, the stronger OGI gets, largely owing to ability to take increasing market share. Their management is second to none, second best cost base in the industry, growing profits for going on 5 consecutive quarters (remember, this is early stages so being able to cosistently turn a profit at this stage of the life cycle is no mean feat), etc. etc. You've heard it all before on this board: OGI is amazing, loved by analysts and institutions far and wide. Hype? No. Canopy was hype. Tilray was hype. Cronos was hype. OGI is the self-confident turtle in the race. I've been betting on the turtle for some time.