Perhaps this isn't the place, but I'm interested in a discussion on this - even if it may ultimately have no impact on share price leading to legalization.
I'm concerned that it is not easy to track down credible reviews of Canopy's product. It also appears that LP's have a captive audience to an extent - one must re-register with another LP if they really dislike their current provider, which seems onerous. There is a significant proportion of the cannabis consuming public who are nowhere near an urban center and its' dispensaries, and a similarly large portion who might not have the option of a consistent 'hook-up' on the black market or might not want one once they've gone to LP. All of these factors suggest that if Canopy's product is 'good enough' then sales continue - for now. I think there's a large population being served by the black market and these are the future recreational customers.... which is what I'm interested in long-term.
I think awesomesound is overestimating the influence of 'Cannabis Culture' (not the dispensary chain) - at least here in Toronto most frequent pot consumers I know (myself included) are professionals who consume pot, buy it off the black market (not dispensaries), and would NEVER want to be associated with what currently stands as the 4/20 crowd. I suspect, though do not know, that we are a BIG demographic. We also are used to consistent supply of high end product in terms of potency, and have clearly been ignorant of pesticides and whatever else the black market growers have put on their product.
I'm really curious how this market/demographic will be served when things go legal. I worry that Canopy isn't well positioned currently to serve a daily smoker connoisseur type or the type of customers awesomesound talks about. I think there's a definite potential for Canopy to thrive (financially and at least short-term post-legalization) despite selling a mediocre product and thus help to maintain a community of illegal 'craft' growers. But, if that crowd gets their act together (lobbies, isn't precluded from market participation by virtue of having been involved in dispensaries etc.) they could be a future threat to a complacent incumbent (I know we'll all have moved on by them, but still).
Large stash of unsold inventory and the spotty online reviews of the product aren't reassuring long-term, no matter the share-price rebuttals, I don't get the sense we are producing THE BEST. That said I felt the same way about Apple (at one point), but had no trouble profiting off their product, which I dislike greatly. Also, even if I didn't have a stake in in this, I'd gleefully cheer on as a corporate giant like Canopy crushes the independents, they jumped the gun and got greedy. They could've done things the right way and been on the path to creating some kind of collective association, lobby group, something legit. Instead their links to organized crime are showing and the pretense of serving a medical need while selling rec weed out of dimly lit storefronts will be their undoing.
I would REALLY love to try some Canopy product so at least I could have qualified opinion regarding my investment :)
AI
