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I believe it has to do with Cramer. Unfortunately a lot of people watch mad money and take every word he says quite literally.
To be honest I don't think he knows enough about future projections to tell people to sell weedstocks. He mentioned how the big 3 have a combined market cap of what the projected rec sales are in Canada so they're overvalued. Obviously not taking note on international markets and how big things can really get, saying bud prices will go down due to oversupply even though Brucey said the same thing and is capitalising on it already in drinks, edibles, international markets, healthcare etc.
He mentioned how GW pharma is a good pick due to the FDA approval of CBD, but that vote happened a day before the special and I'm willing to bet that's the only reason he mentioned it, because he hasn't put the research into the others as much.
If you're valuing any pot stock based on current revenues and PE ratios, then yes, they're overvalued. But if you can see what's on the horizon and how big this industry is going to be in such a short amount of time, then they're undervalued IMO. Shorters and sellers need to do their DD a bit more.
Order # 799371 just now
With the FDA approval for GW Pharmas CBD oil, the federal government will need to reschedule CBD probably not THC (at least not right away) I read somewhere within 90 days. In saying that it will show more effort to reschedule all cannabis eventually as today marks a true proven health study for its benefits. They can't argue with the medicinal value of MJ anymore. Even with the rescheduling of just CBD it opens the door for all the LPs to pursue a federally legal market for CBD in the USA. Tbh I'm surprised we're not green right now. But it's only a matter of time!
‘It will save money and lives’: Federal health committee recommends universal pharmacare plan | National Post
http://flip.it/hm0ieQ
Would love to see this pass for the benefit of all canadians! One day, when medical MJ has a DIN, and if such plan was in place; it would just prove to be yet another catalyst for us. So many things to look forward to!
I like the bear volume dying off, seems to be slowly switching back to bullish after some much needed consolidation.
I agree with you 100%. The house Bedrocan strain is my favorite sativa. Order it almost everytime. Everything else at Bedrocan is schit though.
I got 21.5% bakerstreet buds. There was a limited "not a lot" sale last week. Had some last night and it was glorious.
Btw Bob, my Bakerstreet was packaged March 7th. Not years ago like you suggested.
Honestly debating selling shares in basically everything else and buying more canopy right now. Can't believe, though the global markets are strong, and there are numerous articles saying to pick up the cheapies before the next run, that the mj sector continues to be down. Fire sale!
Perfect. The MJ stocks always do better in the Fall/Winter anyway. Way more momentum build up in that case. Thanks for the heads up Bob! I'd almost say you're on our side!
Bahahaha Chuck Rifici tweeted Bob, "oh Bob, 4 years and still hatin' on Tweed". This made me laugh my ass off.
Order #779053 at 1:11pm EST. Got myself 20g of BAKERSTREET ! :D
Fast forward to June 7th please. This is hurting. Yet Trump seems to think hes the best thing to happen to the stock market...
Pics or didn't happen. You're literally talking to a wall if you keep blabbing and show no proof. No one here believes anything you say.
I don't know if we're even tracking anymore but I placed an order at 12:37 pst today #760974
I actually had a sort of revelation about this possible deal, while driving today. This is fluff and speculation but hear me out;
If Canopy does in fact buy out Alcaliber then yes, they become a pharmaceutical company putting us in a whole new ball park. People were saying earlier that opioids don't make sense. Even though Alcaliber stated, on their home page, that they were looking into distibuting cannabis products how does it make sense for CANOPY. The deal would make sense for Al but what about CGC?
After thinking about this more in depth I thought about how there's an opioid crisis across North America at this very moment and there's been proven research that the states with legalized marijuana have had a reduction in opioid casualties and usage. So what if Canopy were to make a drug with Alcaliber that acts as the gateway into Cannabis from opioids? Some people with addictions can switch to marijuana from opioids but what about those who can't? Those who's addiction is too strong? Well then they would need something in between to give them that balance and ween off.
Canopy health has filed 27 patents (I think) and I believe they will catch many people by surprise when things get moving with what they're doing behind closed doors. Cgc has a relationship with Alcaliber through Auscann as well. I know this is all a long shot and most likely won't be something to happen right away. But its definitely a possibility down the road!
To future growth!
They get to use all the distribution networks set in place. Halt 40% of opioids being shipped out and replace them with Cannabis products. That would be savage lol.
You're **
I'm not sure that I like this deal. 45,000kg is a lot to not get the full yield within CGC.
https://www.prnewswire.com/news-releases/canopy-growth-corporation-and-sunniva-inc-sign-cannabis-supply-agreement-674707653.html
I was taking my numbers based on ACBs greenhouses. 120,000kg for 1mil sq ft per year in their statements. I cut 20,000kg to play safe as there are probably extraction rooms etc. in CGCs facilities.
Well... we can draw up some new numbers today!
Lets say its only 504mil grams at $4 a gram because who knows if they sell all of it. So roughly $2.16billion... if Canopy can net only half of that at $1.08billion ÷ 220mil ish shares outstanding then you have an EPS of 4.91 × low PE of 20 = 98.18 PPS. (Which, considering most PE are in the 100s because of how fast this industry is growing, again 20 is conservative) High PE of 40 = 196.36 PPS.
This doesn't factor in, as you said, higher margin products like oils and future edibles. Doesn't factor in international sales having a higher cost per gram. I believe we have a winner.
Thanks Bruce.
To say that any company is better than Canopy in this space is ridiculous. We were in a downtrend on every single MJ stock, then BAM, CGC is here to light the way in our time of need. All canadian weedstocks have a reversal pattern again.
With possibly an additional 60 acres in Illinois. Although not much news on this since 2016...
http://www.centralillinoisproud.com/news/local-news/caterpillar-the-farming-company-yes/393743634
Just digging up some facts on Canopys BC Tweed partner, SunSelects, California greenhouse. 56 acres of land. Regardless if this has something to do with the halt or not, this is a very easy way for Canopy to enter the American market when the time comes.
http://sunselect.ca/green-farming/our-facilities/
http://www.producenews.com/more-company-profiles/company-profiles/15155-strong-first-california-season-under-way-for-sunselect-s-new-facility-there
http://www.hortidaily.com/article/18627/US-(CA)-SunSelect-pepper-expansion-to-open-in-October
I always thought the same. My family doctor said medical was an option for me 3-4 years ago but I never got it until last year. I was buying really good weed for 140$ an Oz and figured why the hell would I switch to medical. It was when I found out it was a tax write off that I switched. If it was for recreational I'd still be buying the 140$, how can you go wrong?
During the past year I've realized that medical is great though. Canopy has unreal strains that many friends have said is unlike anything they've ever had (and thats coming from the land of BC bud). Having the selection and seeing the terpene profiles has got me down to limiting the best strains for me and which I like. But best of all, the oil market. Oil at a dispensary is ridiculous, its dark brown / black, you never know how much to take, tastes awful because its usually made with shake or BoB and about 30-40$ for 1ML! Vs. Canopy at 90$ for 40ml of nice, light, golden oil that tastes like nothing and perfect in any drink. Let alone the margins are better for the company.
The way I see it is the heavy smokers that buy the big amounts will most likely take a while to switch over to the retail markets. But, as prices drop and they hear good things, see the selections, try it out themselves along smoking with friends, they'll eventually get there. It won't be right away, but it WILL happen.
It's all about future growth.
Ya but brought up a little bit through the second part it touches. I feel like the constellation deal started the new trend in the whole market. Connect the dots! Eh MMPR? Lol
Start your trend line from the gap up to 14 after constellation deal.
26.43 - 28.04
Bruce said recently that 6mil in square ft through expansions is set to complete mostly by May. If they can license even some of that right away then we can have a grow cycle at almost full capacity for rec in Aug/Sep.
Gap down on most MJ. Hopefully not too much selloff regarding the delay...
Its hard for a lot of people to understand sarcasm through typed words on the internet with no emotion behind them. Although a lot of people don't get you, I do. You're one sarcastic mofo lol.
Trying to figure out a justifiable share price on complete financials based on Bruces recent interview with CBC. He said add another 0 to the quarter as in 220million a quarter. Yet I feel like he can still surprise us, he is sly like that.
Lets say it is 220mil per Q meaning 880mil for the year. If they can net 3 eighths to half of that at $330-440mil ÷ 220mil ish shares outstanding then you have an EPS of 1.5 - 2. Assuming a P/E ratio of 40 (which I believe is conservative considering the industry growth and most of the ratios currently being in the 100s) you're looking at a justified price of 60-80 per share. Not factoring in hype or the extreme expansions into edibles the following year, and international sales which give them greater costs per gram. That is conservative IMO. Correct me if something doesn't add up.
Heres to future growth!
If Canopy could secure 30-40,000kg from Ontario, 10,000 from BC and AB, and a little bit extra for the remaining provinces, that would be unreal. Having 80-100,000kg already guaranteed to be distibuted even at 5$ a gram gives them 400-500mil, let alone all the overflow and international sales. Things are getting exciting!
Very impressive report. Way ta go Bruce.
Feb 14 8am EST
Thanks!
Broader markets green. Most other MJ green. CGC deep red regardless of senate tour today. I'd have to say so as well. Insiders may know about the report. Hopefully Bruce is cooking another PR soon.
Its good to have an opinion on both TA and fundamental. TA mainly for swings and fundamental for holding long. Yes, you CAN cash out high and buy lower when combining the two but we're in an industry where any bit of news can happen at any point and send weedstocks flying. When the constellation deal happened, we were in a downtrend already for almost 3 weeks then went up almost 100% in 7 days. Any bit of news, and all the TA can be thrown out the window. Time in the market > timing the market.
MJ stocks have already crashed over 40%. The DOW and S&P are still in correction. They've only had a 10% decline so far. Even though broader markets are still having schit days like yesterday, MJ stocks are holding their own. I believe that shows that we are on our own trend at this point.