This is not really an oversupply situation. The problem seems to be a lack of retail outlets in Ontario and Quebec. I understand the concerns and overcautious steps taken by the Quebec government. I don't agree with their approach as the black market issues must be addressed especially for the thousand of university students living away from home and subjected to black market transations.
We see that there are several related problems. At least Ontario is in the process of opening their market. I would also like to see the companies selling directly to consumers. That is not going to happen.
Canopy, Aphria and Aurora are well poised on this front. But Zenabis has an advantage on the production and cost front. Their business is now beinning to get lean and mean thanks to Vincent Quan who is an expert on grow efficiencies. He also has financing connections and is a stakeholder in Zenabis. He is to grow operations what John Chen is to technology and both are turnaround professionals.
Oversupply? NO! Not from the organization perspective. Fortunately for investors Zenabis has the most effective and stable execution plan.
Excellent buy at these prices