Quote:
Originally Posted by bing240sx
it's an extrapolation of 200,000kg at $4/gram wholesale.. 200,000kg is stated, $4/g is a reasonable wholesale value. This likely represents a floor of sorts.
lots of developments from the Ontario Cannabis Stores as well:
https://lcbocannabisupdates.com/upda...board-members/
sorry, $800 B should have been $800 M... i cannot edit the post. |
Colorado is already under $3/gram. Washington state hit a new low of ~$1.75/gram recently. That's without widespread legalization. This is exactly why I got out of the industry as soon as I had actually done some independent assessment. It's a commodity crop that isn't terribly expensive to grow. With wide-spread legalization, I could honestly see wholesale prices falling to $1/gram or less.
The companies worth investing in are the ones that won't rely on wholesale sales for revenue (e.g. Canopy/MedReleaf, I dont pretend to know them all though - easier money to be made elsewhere in markets). The Canopy CEO has said this publicly in interviews; there's no money in it for the wholesale players. Anyone touting capacity as a buying opportunity doesn't see the big picture, IMHO.
I said a few days ago that I still like the industry but will wait to invest until it is clear who the real companies are. I may miss some gains but I will be protected over the long run.
I think a lot of us bought into this in the run up to the holidays and, given other things going on, didn't do a lot of research. Most have lost some money. I fall into that category. I've already made it all back playing in the sectors I know well, though.
Proceed with caution. That's my only point.