RE:RE:Less revenue than a year ago, put Financials above quarterlywhateveryousay wrote: It reminds me of the privatization of liquor stores in Alberta they issued hundreds of licenses allowing 3 stores to open in the same block was common.Within a couple of years most were bankrupt and the vultures came in and bought up all the licenses.Now we have mainly very low grade operations all of which are owned by a handful of scummy companies.Cannabis also has to deal with a very entrenched black market and in spite of the negative press warnings a lot of the illegal cannabis is very high quality and not contaminated with toxins.The big legal growers were caught several times using chemical herbicide and insecticides.Legal weed is thankfully here to stay and it is finally ok to smoke a plant without risking jail time.The greedy scammers who started most of the legal operations made fortunes with their pyramid schemes now the attrition is starting to ramp up 65% of legal growers will be dead within 12 months allowing the black market to regain market share.This has been a train wreck of a roll out for legal weed.
I don't think the black market will gain shares. People used to buy legal will continue to do so with another legal one that will have taken the place of the BK one or simply by acquiring the weak ones "for shares" for example, closing the useless facilities, firing people and cut spending. It will obviously be a slump for years to come.
Food for thought... The owner of a private company who thought he would make so much money that he could expand his business can still make a living out of his business without expanding if the competition is too harsh. A private company is (or should be) well managed in the 1st place, since they don't have access to the public money, unlike the public ones spending investors money for useless facilities, while giving themselves huge pay check in options.
The problem is that the privates, well managed ones will be fierce competitors. The public ones have problem generating good revenue so there is no expansion in a near future for them. Entering the US will not change a lot short or medium term in term of revenue. Of course I will play the news and buy if the Senate legalise before the August recess. It will not be for the long term. Although ACB will benifit in term of pushing the share price if the Senate vote is positive, I will not buy ACB. I will probably buy some Tilray, WEEK and TRUL but not for the long term. The competition is rough in the US and i have a poor prospect about a Can one entering the US.