THC and CBD vape pens will become the dominant way to consume. The oil/extract business is super high parabolic growth ahead. The stock market hasn't figured this out just yet. So to play it are several ways. Big LP's will ramp up extraction in-house, while outsourcing some too for the first few years. That's not a direct way to play the space necessarily as those companies have to justify valuations with flowered process that will plummet. VFF is best bet to survive that. But to play the oil directly is difficult. Of the public companies I'm not overly impressed with the 5-7 options on US and Canada. I like the pure legislation play in Canada plus ability to export. Medipharm is the clear leader. Startup of the year 2018, first to license, first to post 2018 revenue, first to sign huge deal, first to sign international deal. What other firsts are coming? First to gmp certified? First to export? First international facility licensed? First to sign major vape pen agreement?
Running at 85M now, and 300M possible by year-end.
The oil market could be delayed to 2020 start. Summer should spell out the legislation standards. The market could correct before the realization all hits. At some point the sector, lead by medipharm, should go on a parabolic run much like Canopy lead flower and CVSI led CBD.
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