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Originally Posted by bizaro86
IMO the weed stocks only get a valuation like that if the market consolidates and they have power brands. Beer/spirits are very much branded products, which makes their margins/return on capital both sustainably higher. It is very possible that the weed producers end up being more like cyclical agriculture stocks - and if that happens it isn't obvious to me that growing plants in Canada inside a warehouse with artificial light will end up being the efficiency winner.
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I have a buddy who is an executive in the space. He explained to me that as it stands the tax regime in Canada for cannabis is far too high and unsustainable. They need reform in order for any of these to survive. Ads in supply chain issues for products such as gummies and other edibles and it’s been a tough slug.