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Originally Posted by fleury
All cannabis stocks seem risky. Too much supply at times, not enough demand because of government prices from what I’ve heard. So overall I think there’s money to be made in trading but almost as the experts predicted, there will be a consolidation and the big boys will be left standing. Could be a combination of acquisitions or smaller guys going bankrupt but I think we’re seeing a lot of the smaller guys being cash strapped. The big players as well so they haven’t been too keen recently at acquiring the little guys. Just by virtue of that I wouldn’t be too optimistic at a penny stock aside from trading. Who knows.
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I think the big boys will fall as well, with only the small profitable players left standing. I follow a blog that tracks the cannabis industry pretty closely, and everyone is losing massively. To me, it seemed like they raised money at tech valuation heading into a consumer market where revenue growth was never going to support the multiples, then everyone overbuilt their supply instead of building based on realistic forecasts and sitting on their money.
The consolidation by the big players at this point seems to be just a game, get out the good news try and keep our stocks high pretending that this increase in revenue will meaningfully decrease the gap between our small revenue and massive operational expenses.
I am very bear on the Cannabis industry, seems like a house of cards ready to collapse hard.
(I don't have any exposure to the Cannabis industry at this time, and not planning on adding any)