Aurora Cannabis Inc (ACB)

[Chicago-Paul]

Walk into a Walmart. Then step-back and look around. The shelves at Walmart are always full of stuff. As such, one could argue that there is an oversupply of EVERYTHING.

But that is not how this works.

Bayer has been making Aspirin for more than 50 years. The Bayer Aspirin Factory turns-out millions of Aspirin Pills a month. I just bought a bottle of Aspirin last week for $7/bottle.

So why doesn't the oversupply of Aspirin make it sell for 50 cents a bottle? Answer: Because people are willing to pay $7 a bottle.

People are willing to pay $10 a gram for Cannabis. That is the norm. An eight of weed is 3.5 grams. So that is $35/an eight. That is what people are willing to pay.

I've been in a lot of dispensaries in Colorado, California, Amsterdam, and Spain. Dispensaries know how to market. They have an array of offerings at a range of prices. If a strain isn't selling too well, then they just have a sale on that strain.