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Retail Investor's Perspective
Why did the author name those two specific companies? The article then appears to jump the shark by suggesting that all LPs were born from the MMPR system and that system was declared illegal and therefore any LP under the current ACMPR that was an LP under the MMPR is no different than any other illegal grower or distributor and therefore that is proof that the proposed legislation is designed to favour a few. To start, the MMPR system was not ruled illegal but rather facets were in violation of the Charter of Rights and Freedom and the Government was given time to address those facets. Unfortunately, such articles have traction right now due to what was appearing to be a continued bearish sentiment. As a rule, I do not like to give any attention to such sources but in this case seeing is believing – article.
We covered the comparison to the dot-com period in detail in November. There will be consolidation and possibly many more losers than winners but we have explored all of this in detail in past issues – Ecoforming and The Consolidation Curve. One key distinction in this industry, compared to the dot-com era, is investors can choose companies based on revenues with real products, real customers, real assets, and real business plans often backed by a growing body of medical, scientific, and social evidence of the benefits of legalization and medical applications of marijuana and hemp. Unlike the dot-com era, this is the transformation of an existing black market multi-billion dollar industry into a legal regulated industry and we know already there may be supply shortages. Some assert that the black market will still exist as some will never turn their back on their “suppliers”. The passage of time itself will address much of this facet of the transition. Many more individuals may switch from alcohol to legal cannabis or start using cannabis for the first time. This existing and growing market is a key distinction.