RE:RE:RE:OUCH down 16% and tanking Edibles, Oils Hand Creams, Face Creams, Gels, Vapes, etc etc, All of those products need more cannabis than smoking dried flower. So that alone will eat a nice chunk of our inventory.
Also, Canada is not the only market available. Lots of countries where we can export and new possibilities such as USA legalization. USA alone can put huge demands on our supplies for the first few years until they have there own producers....
Not to mention, not every country can produce quality weed like Canada at the cost WE can.
Not every country will want to enter the production side of marijuana.
For example, anyone can brew beer or make wine but you'll always have those big brand names making the most money. Heineken isn't Canadian but it sure is popular here in Canada, even tho we produce our own beer (Good beer too). Guiness is another big brand, popular and drank all over the world.
Another example, I'm sure we can all buy cheap shoes for $20 from China but most of us buy the expensive American Brand Nike, or German Adidas. Anyone can make shoes for much cheaper.... but those companies are successful and anyone can make shoes.... for cheap.
Not every country that will be smoking will have a massive surplus is marijuana production, most countries will probably be importing high quality marijuana from Canada, even tho they can grow their own for cheaper.
I don't see this "race to the bottom" happening. If antything, we need to get more retail locations in big provinces like Ontario and BC to sell and compete with black markets. Some people have to drive for hours to get legal weed.... or they can just get black market weed down the road from their house... that's money we're losing right there. Other countries such as Germany and Italy are buying Canadian marijuana and they'll need more, especially if they open the floodgates and legalize recreational use throughout Europe and USA.
I'm in it LONG, and at these levels I'm in it Medium. I can easily buy shares at these low low levels, and sell them back to you Parthert and S7 for 30Cents while holding my core position LONG.
I'm here to make money, not play mind games.
Adios.
Spectra7 wrote:
bobz, the question still remains...does the sector require anything close to the grow capacity now in place, forget about what's currently and soon to be built out. I don't think so. Where is all this production going to be sold??? Add to the conversation today about the near term ability of outdoor grows, regardless of the so called liabilities that come with it....as started by HEXO, the race to the bottom of the price ladder is upon us. Not all consumers are interested in paying even $125.00 an oz. If a product gets the checks and balances of H. C. and that gets into the retail distribution across Canada, I can see a day in the very near future were $50.00/ oz ....yes I said $50.00 an oz and lower is coming.