RE:Canopy, Tilray lead weed stocks higher on U.S. banking bill Linton is still worth a listen! I watched his BNN interview yesterday and I got that he thinks that the pot biz is oversold.
It has certainly been overbought a few times with crazyazz multiples achieved by those showing promise likely on the coatails of Canopy and Tilray, Great Canadian LPs and some of the US MSOs doing business in a more pro-pot environment.
Canadian LPs certainly went all in to build formidable cannabinoid companies and developed tail to snout but are now faced with cherrypicking the skus that can net profit for the bottomline.
I don't think anybody anticipated that North American governments would strangle the potential of these new vice startups, especially after going legal adult use in Canada and turning it in to a political plum in the US to bat back and forth.
Thank God for the Pharma use that kept a toe in the door and garners a lot of political support.
Canada strangled their legal pot business with posession rules and labelling, packaging and a clusterfuch of lotteries and such to determine who should open the storefronts and dragging their feet on edibles being launched.
The US MSOs worked hard to navigate their quagmire after realizing the potential that rocketed the Canadian pot industry to crazy heights on novelty and not commonsense.
American business worked the legal States and the Pharma angle and the adult rec angle and achieved black ink while Canada pretty much strangled our potpreneurs to the point that they are focused on their International prospects, specifically the US, where they can smell success and feel they have enough know-how and tested skus to be formidabe potpreneurs by bringing our expertise, recipes, brands and management to do business on US soil to round out out International ambitions.
Right now Canopy isn't looking good but Bruce the dreamer drove the marketcap to $21 billion, almost neck a neck with Constellation Brands right after he pulled of the $5 billion deal for Constellation to buy into Canopy.
Canopy has clearly identified that their focus is on doing business in the US and have foresaken their old rule of not until the Feds decriminalize. Big Brother STZ is ramrodding the US expansion and done more than just Canopy investment to set up with Acreage Holdings, leading US MSO for a merger/takeover such that Canopy converts Acreage shares for Canopy.
New country, requires a new listing which is proposed to be Canopy USA where there are already branding deals with Acreage and others for Acreage and others to manufacture Canopy's brands, already tested and tweaked for success on US soil.
Linton thinks the whole pot market is oversold and Tilray seems to be going to school on Canopy by buying up US interests that are like minded and beverage alcohol bottlers on US soil which can be quickly switched to cannabinoid bottling.
Make no mistake that cannabinoid infused beverages are cutting a path into soft alcohol beverage marketshare and Canopy has a good plan for the US and Tilray is on their donkey despite the heavy investments and lack of revenue to cover their bills.
The non US players are banking on that huge US market to make profits and they are coming well prepared.
I thouht $3 Canopy shares were about the bottom but I was wrong but I also believe that those that can generate operating cash, like Canopy through Big Brother STZ, who I believe will push this to profits just like they did with Constellation, multi-unicorn and dividend player to shareholders.
The MSOs are on it doing it right and the LPs did a lot to build the industry and are formidable.
Sadly the little guys are going to be crushed unless they can go premium boutique with some very special skus.
So much future potential as the pharma pot industry shows so much potential and has barely been scratched by the US who just laid down some regs for them to show us what they've got.
I like the cannabinoid infused beverage idea and see a huge change for the beer and cooler market as consumers migrate to healthier options for their social drinking.
glta and dyodd