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Rowdy2

02/19/19 4:33 PM

#43191 RE: stcks4prft #43188

I'm not sure about Canopy (its a good company tho)...Aurora is closing in on its fair value, I'd say its just a little overvalued at the moment

mr green239

02/20/19 4:39 PM

#43289 RE: stcks4prft #43188

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.