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Re: goin2buy post# 89299

Wednesday, 09/26/2018 10:04:29 AM

Wednesday, September 26, 2018 10:04:29 AM

Post# of 128586
well you need to contemplate the share structure before and after the deal.

it is all about the warrants....at this price CGC has a fully diluted market capitalization of over $30 billion, STZ would be paying $10 billion for about 50% of it.....over the next three years of course, they don't need to pay all of that up front...

i mean if you really think this stock is going up from here, that it will be far more valuable than $65 a share in 2022, well STZ is going to reap most of the rewards off that for sure....and if it goes the other way it certainly doesn't hurt STZ as much as it hurts an investor buying WEED today...

STZ is a great way to be invested in WEED right now, but a hedge against all but the best case scenario for WEED

it is all about the warrants.....this is just rough estimates - but I figure every STZ share has access to over $85 usd dollars of WEED stock (1.7 shares) and it's cost in total would be less than $60 USD per STZ share to obtain them, the majority of which they don't need to actually pay out until 2021.

This is just how I am choosing to look at the situation, I like STZ far better than WEED right now, I predict that STZ will outperform WEED over the next 3-4 years


Buying low, selling high is a tough way to make free money, this is easier.