Investing

Cannabis (Marijuana) Stocks

  • Last Updated:
  • Dec 1st, 2020 8:41 pm
Member
User avatar
Jul 11, 2015
288 posts
115 upvotes
Victoria, BC
nikels21 wrote: What barriers to entry are their if they purchase an existing Canadian company?
yeah i glossed over that fact. none, your right :p i guess it is a highly likely possibility considering cgc has done it to many already, surprisingly no one has done it yet. Maybe tahts asign that no massive companies are willing to take that risk yet. i just meant the barriers of them buying a crappy company and scaling it up, are most likely improbable because the intellectual property and probably some sort of volume type licensing/ supply chain management control, will be implemented. Ive read a bunch of stuff suggesting the market caps of current medical marijuana companies is a good indicator of how market shares will be split when legalization hits.but who knows how all that will work. Who knows whats legit or not when its weed news. cbc seems to have been pumping out news this week which is just recycling information from the last report.

Did the government actually make a statement that the date will be july 2017? i find it odd how cbc and other news sources have made this claim multiple times in the last week or two
You're the average of the five people, you most associate with.
Deal Addict
May 18, 2015
1452 posts
478 upvotes
Ottawa,Ont
jointedhornet wrote: yeah i glossed over that fact. none, your right :p i guess it is a highly likely possibility considering cgc has done it to many already, surprisingly no one has done it yet. Maybe tahts asign that no massive companies are willing to take that risk yet. i just meant the barriers of them buying a crappy company and scaling it up, are most likely improbable because the intellectual property and probably some sort of volume type licensing/ supply chain management control, will be implemented. Ive read a bunch of stuff suggesting the market caps of current medical marijuana companies is a good indicator of how market shares will be split when legalization hits.but who knows how all that will work. Who knows whats legit or not when its weed news. cbc seems to have been pumping out news this week which is just recycling information from the last report.

Did the government actually make a statement that the date will be july 2017? i find it odd how cbc and other news sources have made this claim multiple times in the last week or two
July.1st, 2018 they said it will be implemented by then. My assumption is that the big players wont enter the game until it is officially legalized as like you said it still carries quite a bit of risk. I dont think theyre worried about being 'late' to the game because of the mountain of cash they have to compete
Member
User avatar
Jul 11, 2015
288 posts
115 upvotes
Victoria, BC
nikels21 wrote: July.1st, 2018 they said it will be implemented by then. My assumption is that the big players wont enter the game until it is officially legalized as like you said it still carries quite a bit of risk. I dont think theyre worried about being 'late' to the game because of the mountain of cash they have to compete
yeah i meant 2018 :p but the government hasn't officially said it yet, have they? also do you know if companies like altria or others, have started doing massive marijuana business in states where its already legal, or even just about to go legal? or what indicators do you have that big tobacco industry will set up shop in Canada, once legalization is through?
You're the average of the five people, you most associate with.
Deal Fanatic
Nov 22, 2015
5684 posts
5086 upvotes
nikels21 wrote: Not at all. Big Tobacco or a large Pharmaceutical company can easily move into the marijuana industry as it is a logical step for either and it pains me that you cant see that. I think a lot of others would agree that its logical for tobacco or pharamaceutical to expand into marijuana.

A company like Altria (over 5 billion in cash) can easily starve out the current LPs in Canada who have next to no cash relative to Altria. For example...one of the bigger players, Canopy actually has a negative cash flow from operations. Best case scenario is that a company like Altria buys out Canopy. But what if they buy-out another company and compete against canopy? My money would be on Altria.
A tobacco takeover would probably be amazing for investors. I can see the tobacco companies scrambling to buy an LP upon hearing news of Altria buying out CGC. There would be a frenzy of acquisitions and they would create massive competition in the market.
Altria wouldn't have enough time to starve out the competition before another big player snatches them up and joins the game.
Deal Addict
May 18, 2015
1452 posts
478 upvotes
Ottawa,Ont
superfresh89 wrote: A tobacco takeover would probably be amazing for investors. I can see the tobacco companies scrambling to buy an LP upon hearing news of Altria buying out CGC. There would be a frenzy of acquisitions and they would create massive competition in the market.
Altria wouldn't have enough time to starve out the competition before another big player snatches them up and joins the game.
Thats where the risk comes in with all the small companies in Canada. If you own a company that gets bought out...youre in for a payday. If you own a company that doesnt get bought out and the big players from the states come in...youre in for a world of hurt IMO. There are a lot of articles floating around with rumours that Altria wants to move into marijuana...not specifically in Canada but all the big tobacco players sell all over the place, not just the US
Deal Fanatic
Oct 13, 2002
5955 posts
402 upvotes
Calgary
seems the new weed etf is pushing up lots of the sector today
Deal Addict
Mar 14, 2007
2755 posts
192 upvotes
Toronto
Glad I added SL to my portfolio earlier this week
Deal Expert
User avatar
Feb 11, 2009
17593 posts
4572 upvotes
Toronto
Well, I'm late to the game but took a small position in "WEED"
Real Estate Agent, MAcc, CPA, CA
Deal Addict
User avatar
Dec 16, 2015
2129 posts
1597 upvotes
Canada
is mix of all weed stocks and go long a good idea?
Deal Addict
User avatar
Aug 28, 2012
1839 posts
1007 upvotes
Kanata, ON
Bought a small position in the new ETF HMMJ yesterday at $10.28. Current bid/ask shows it at $20.26.. I assume it won't actually open this high, but do investors/algorithms intentionally put in high bids/asks while the market is closed to try and introduce hype?
Jr. Member
Sep 8, 2008
197 posts
1 upvote
Toronto
MarvinMartian wrote: Bought a small position in the new ETF HMMJ yesterday at $10.28. Current bid/ask shows it at $20.26.. I assume it won't actually open this high, but do investors/algorithms intentionally put in high bids/asks while the market is closed to try and introduce hype?
just some trolls with rolls Face With Tears Of Joy
Newbie
Aug 20, 2007
42 posts
2 upvotes
Adding to my THC position today.

Good to see SL spiking, been sitting on that for awhile now.

Top