The money-men of Switzerland see huge growth for Canopy in Germany.
Bruce Linton has already said that business from about 1,000 German pharmacies contributed roughly 10 per cent of Canopy’s sales in the last quarter, and the bankers repeated this to me.
Old money in Europe is looking at Canopy’s (and other Canadian LPs) potential growth in Germany.
I spent yesterday afternoon in Zurich discussing the possible financing of an upscaling waste plastics recycling project, and what did you think the round-table discussions turned to: Canadian canna’s global prospects.
It was the first time that I have met serious bankers who were so so well informed of the Canadian canna sector, without the old stigma attached, but objectively looking at generating wealth for their clients by investing in a new emerging industrial sector, with the possibilities of exponential growth in the medical markets and beverages; yep they really like Coke’s entry to disrupt Red Bull, and CB’s entry to disrupt traditional alcohol markets.
And who is their favourite company: Canopy (definitely not Tilray… which they shun).
The straight-suited conservative bankers, and highly-intelligent trading managers, explained that they are noticing large developments medically in Germany, and they have clients, rich high net-worth individuals, who are now investing into this space.
They also expect that after the next few Q financials, which they expect to show solid fundamentals with accelerating revenue growth, that the institutions will then enter this sector, and change this space forever… yeah, the big old boys will take over this space as much as they can, and they have mountains of money compared to us little retailers.
The Swiss bankers we were talking to have nearly 1,000 analysis covering the world for their clients, who are not just Europeans but also gold-plated Arabs and very wealthy clients from the Far East.
And it is the Canadian canna sector that is exciting analysts the most.
They see Canada (JT’s Liberal government’s approach + Health Canada’s strict regulations) as the templet for unfolding this sector globally in the developed world, especially in old Europe, but not so much in the US at present.
Their research shows the potential of a large medical market opening in Germany, which has a population twice that of Canada.
While today’s Nasdaq is down some 2%, and the S&P is down, with today's market sell off, and today’s canna sector is also in the red, I am confident going-forward, after a very fruitful afternoon’s discussions with serious money-men (the discussions went on so long that the bank was closed and when we left the building security was waiting to unlock doors and guide us out) that investments in the likes of Canopy, and other LPs, will show returns far greater than what traditional markets can offer.
