Aurora Cannabis Inc (ACB)

[mr green239]

Long term (+10 years) they are all grossly overvalued.

Expect strong near term revenue growth but you must ask yourself - what will become of this industry in the next 10-20 years?

Will margins always be so high?

No.

Facts suggest demand will rise greatly but they also imply supply will outpace demand ten to one - margins will shrink from lower wholesale prices.

To explain simplistically, grow a tomato plant, cosume its product over a few weeks worth of meals. Grow a cannabis plant and you'll be smoking all year. To scale up, tomatoes over a thousand acres will feed the province while a single high tech cannabis greenhouse does the same. But the greenhouse does billions in revenue instead of millions over a thousand acres?

Many accepting lower margins will enter the industry. Oversupply is inevitable, oversupply is occurrent.