Risk EliminatedI like Valens for many reasons but one major reasons Is they specialize in private labeling. They have major growers coming to them to utilize their patented processing system to produce CBD, used in edibles and beverages. They have companies like Sopper Drug Mart signed to contracts.
Too many people focus on the growers and how the black market can undercut them. When was the last time you heard of black market selling edibles, to infused beverages. We are only in the early stages of this, then we get hit with Covid 19.
Valens purchased their own beverage bottling facility which was very forward thinking and further enhances their private labeling rollout.
I saw early posts about USA companies surging and will take over Canadian cannabis companies, yes always a possibility but they need federal approval. Canada has too many and consolidation continues to happen and the cream always rises to the top.
Valens is profitable, how many others are? Valens is sitting on a pile of cash, no need to attempt to raise cash in these difficult times.
It is unfortunate that this stock trades around the general cannabis sector versus its own merits and balance sheet. It is only a matter of time that institutional investors take notice since they moved to the TSX.
Long and Bullish!