Tilray Brands Inc TLRY

RE:RE:MSO Cult losing their minds,... again.

[Oldweed]

ediabid wrote:

CommonCentsforDollars wrote:

Irwin Simon, imo, is what we  refer to as a Steady Eddie, slow & steady, and that goes a long way in the success of a business.  I think he is on the right track here.  Good luck fellow investors. 


“A lot of the US MSOs are sort of saying, ‘Let’s spend all this money now on growth,’ but if later regulations say they can’t be a grower or they can’t be a retailer, their model doesn’t work anymore,” he said. “We don’t know what’s the model that legalization will follow, once it happens.” 

Irwin’s caution is inspired by his future competitors. Tilray is a big company compared to other cannabis firms, but not so big when compared to enormous alcohol, tobacco, or other consumer-packaged goods companies—several of which, including tobacco giant Altria and alcohol behemoth Constellation Brands, have invested billions of dollars into cannabis with an eye towards the U.S. market. Those aren’t the kind of firms that Tilray will be able to overpower with brute strength. Simon is a firm believer that legalization will happen in the U.S. “within the next few years.” Until then, in Simon’s analysis, buying an American cannabis license is like buying a lottery ticket. And rather than gamble, Tilray is content to stand pat and watch and wait until the game evolves.“It’s waiting to buy at the right time,” he said. “At the end of the day, if we have to pay more, I’d rather be sure and pay more for something that I know is right, rather than buy a lottery ticket and hope that ticket comes in time"

This brought to mind the Aesops tale of The Hare and The Tortoise:

A Hare was making fun of the Tortoise one day for being so slow.

"Do you ever get anywhere?" he asked with a mocking laugh.

"Yes," replied the Tortoise, "and I get there sooner than you think. I'll run you a race and prove it." The Hare was much amused at the idea of running a race with the Tortoise, but for the fun of the thing he agreed. So the Fox, who had consented to act as judge, marked the distance and started the runners off. The Hare was soon far out of sight, and to make the Tortoise feel very deeply how ridiculous it was for him to try a race with a Hare, he lay down beside the course to take a nap until the Tortoise should catch up. The Tortoise meanwhile kept going slowly but steadily, and, after a time, passed the place where the Hare was sleeping. But the Hare slept on very peacefully; and when at last he did wake up, the Tortoise was near the goal. The Hare now ran his swiftest, but he could not overtake the Tortoise in time.

 

The race is not always to the swift.

 

I'm pretty sure if any LP could oerate in the US they would, you only have to look at CGC, ACB, CRON they are commited and poised for the green light. TLRY doesn't have the money yet to even make a move and that is why Irwin is seeking shareholder approval to dilute (you snooze you loose). States are independent and each state has their own set of rules regarding MJ, the Feds will not stick their noses into that, all they will do is pass safe banking, decrtminalize, and deschedule MJ which will open the door to cross borders. So yes the Feds will have a say in international trade but little say in interstate trade. MSOs have been present for years and the big boys are here to stay. Of course Irwin has to try and put a wise I know better spin because he is for now simply out of options. As for the MSOs its a win win as the longer it takes to legalize at the Federal level the longer they operate in a protected market and if they Feds move quickly then they have imense growth opportunity as would the LPs (assuming the Feds allow international trade at the start). So the so called lottery ticket is actually found in owning the LPs more than it is the MSOs IMO.