Quote:
Originally Posted by station
I've asked this before on here but I'm still curious. For those heavily into cannabis, are you expecting future revenues to justify the insane valuations of these companies and, if not, what is your exit strategy? Is it a long term play based on hope of real growth or are you just riding the wave and hoping to get out before the bubble bursts? It's not a passive aggressive criticism either, I'm just generally curious while acknowledging that I've missed the boat on cannabis to this point. Just check this basic comparison of the most recent quarter of Canopy Growth to Canadian Tire and Dollarama which have a similar market caps:
WEED.TO
Market Cap: $13.4B
Revenue: $25.9M
Net Income: -$80.2M
CTC.A.TO
Market Cap: $11B
Revenue: $3.2B
Net Income: 156M
DOL.TO
Market Cap: $16B
Revenue: $756.1M
Net Income: 101.6M
I know there is way more than this to the story but the market cap of WEED is insane even compared to a high growth company like DOL.
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I think there are two plays.
#1 ) Someone buys them for a substantial premium
#2) Weed becomes as popular as beer for recreational use
Just as an example, in the past 10 years Anheuser Busch stock has gone from $15 to $85. If Weed becomes as popular as beer as the drug for recreation use, revenue could rise very quickly.