[Flash Walken]

Originally Posted by CliffFletcher

So the feds released their study on marijuana pricing, and it turns out the average current user pays less than $7 a gram. The news took the wind right out the of the sails of the Canadian marijuana market, which was basing its fundamentals on a $10/gram price point.

Looks like Terry isn't going out of business anytime soon.

On Friday, the government’s statistics agency released new data that shows Canadian marijuana costs C$6.85 ($5.53) a gram. Earlier estimates suggest weed prices have been falling in recent years as illegal producers boosted output in recent years, potentially cutting into the revenue for publicly traded companies that hope to tap into the new market.

Concern that companies are overvalued has helped spark the decline, Zandberg said. While some of the periphery cannabis stocks will probably not survive in the long term, there is enough demand in Canada to transfer over to a legalized market and the industry leaders will thrive, he said.

“People are panicking because they are losing their money,” Chris Damas, editor of the BCMI Cannabis Report, said in an email. “Stocks are in bear market territory.”

Friday morning’s selling is probably the peak and stocks will likely stabilize from here, Damas said in a note. Still, the Canadian cannabis shares have been overbought and have probably seen their highs for the year, he said.

https://www.bloomberg.com/news/artic...ine&yptr=yahoo