Canopy Growth Corp (WEED)

[Wo]

Logic to me says, the public will pay for what it's worth plus tax to have a legal regulated product. Legal is value added and so is quality. What would an average person who doesn't want to approach the neighbourhood pusher pay for a legal product? Put any Bootleg product against a legit product... Cigarettes even, that can be bought untaxed for over 50% discount. The majority of people still prefer a legal option, even though their paying out the wazoo.

I can't predict what the price structure will be, but I'm leaning away from the idea that legal rec will have to compete with illegal, which sells for $10/g anyway. 15/g is some u.s states and $25/in northern Canadian territories.

Will the government attempt price controls through taxation? Possibly. But why bother unless their are serious abuse issues. Let the price fall and tax what the market is willing to pay, a fair price for regulations and enforcement.

I say let the market decide. 400 million grams sold at $1 is still 400 million dollars. No pain in that unless it costs more than $1 to produce a gram. The business will go on, investors just decide if they like the margins or not, and if the pps is worth their investment.

Airline profit margins have been on avg 2-3% of tens of billions of dollars. And investors still like those numbers and people still buy those tickets. Air Canada $11, West jet $22.

I'm not really worried about it all. The market will decide and boards of directors will adjust. The industry will go on