Weed stocks? Yeah, weed stocks!

[R-Audi]

I have two pot stocks that I have scraps left in that are way down.. (-$500 on a $600 initial purchase) seeing that I cant imagine them coming back, I assume it makes sense to sell now and take the loss for my 2019 taxes?
N.NV Namaste Technologies and THC.CN THC Biomed

[suntan]

Time to buy ACB?

[ThePenIsMightier]

"I invested in a stock that was expensive even before they had sold a single ounce of their product and then the stock went down and I lost money. I'm suing. America First."

https://www.cbc.ca/news/canada/calga...-u-s-1.5431520

[msommers]

So Aurora is just killin' it

https://ca.finance.yahoo.com/amphtml...210322969.html

[ThePenIsMightier]

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So Aurora is just killin' it

https://ca.finance.yahoo.com/amphtml...210322969.html

So, how are these companies not making money? I'm all about them being over valued before legalization, but now they're selling product that's dirt cheap to make at high prices.
Is there some complete bull shit going on?
Were they paying their execs 1000x more money than they should have?
Is there way too many suppliers for the actual market? That seems impossible.
What am I missing?

[BavarianBeast]

Turns out big cannabis companies can’t produce quality products at fair prices. Everyone who knows a thing or two about cannabis is still sourcing illegally, they just simply can’t compete.

[adam c]

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So, how are these companies not making money? I'm all about them being over valued before legalization, but now they're selling product that's dirt cheap to make at high prices.
Is there some complete bull shit going on?
Were they paying their execs 1000x more money than they should have?
Is there way too many suppliers for the actual market? That seems impossible.
What am I missing?

I think making it legal made it a novelty for a lot of people, people who were scared to try it before due to potential consequences tried it, then the novelty wore off and the hype for legal weed also reduced

[ThePenIsMightier]

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Turns out big cannabis companies can’t produce quality products at fair prices. Everyone who knows a thing or two about cannabis is still sourcing illegally, they just simply can’t compete.

But the legal stores have been selling out of stock, haven't they? If that's true, the growers should be selling 100% of their stock, and possibly even elevating their prices (if permissible).

[Disoblige]

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But the legal stores have been selling out of stock, haven't they? If that's true, the growers should be selling 100% of their stock, and possibly even elevating their prices (if permissible).

They are selling what little of the stock they ship. If you talk to any storefront, they barely know what they are going to even get because the stock is limited and bottlenecked. Canada's rollout has been fucking terrible. Alberta has the most stores in the country and it still sucks here.

ACB is done, Canopy is just as bad but they have that 5 billion investment from Constellations Brand. APHA out of the big three might be top soon but that still means nothing because there is 0 reason to invest in this sector for the remainder of this year. CRON has Altria. Next catalyst is SAFE act and eventual legalization in US. Otherwise short this garbage.

[ExtraSlow]

seems to be a big bottleneck between the greenhouse and the stores. For a while it was the tax stickers. Part of the problem is that they need different packaging and labeling in each province. Or they did anyway. That's madness.

[mr2mike]

No money in growing. The money is in the edibles and drinks. But really US companies are better investments. Cdn gov't is messing this up.

[BavarianBeast]

Hard to make money when you got to jump through all the hoops, hire a bunch of fat, advertise, transport and then put a ridiculous amount of money into packaging on something I could teach my 6 year old nephew to grow well.

There's a ton of money in growing smart. I know a lot of very wealthy people who have made their fortune cultivating & extracting and selling on the grey market.

The CDN government has messed it up for most people though, I agree. It's a shame, but that's what happens when idiots who don't understand systems try to regulate something they don't have a fucking clue about either.

[ExtraSlow]

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The CDN government has messed it up for most people though, I agree. It's a shame, but that's what happens when idiots who don't understand systems try to regulate something they don't have a fucking clue about either.

Who looks stupider here, the government, or the companies that assumed that the government wouldn't make it unnecessarily complex?

[Darell_n]

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The CDN government has messed it up for most people though, I agree. It's a shame, but that's what happens when idiots who don't understand systems try to regulate something they don't have a fucking clue about either.

You would rather have unregulated medication products being sold to the public? Aurora and Sundial are customers of mine and I also work on other extremely regulated Health Canada sites (blood). The design and implementation of facilities in the pot industry is both humorous and tragic at the same time. A total shit show trying to upscale some guy's backyard greenhouse into something with 100,000x the production.

Fixed this for you: 'It's a shame, but that's what happens when idiots who don't understand regulations try to produce something they don't have a fucking clue about either.'

[arcticcat522]

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Who looks stupider here, the government, or the companies that assumed that the government wouldn't make it unnecessarily complex?

Or the investors that made the companies have unbelievable market cap

[KrisYYC]

You mean legal weed hasn't added a trillion dollars to Canada's GDP, cured cancer and ended homelessness? Shocker!

All kidding aside, the hype before legalization was ridiculous. Now as someone who doesn't partake in weed (though not against it being legal either) what is the root cause of the problems with the legal industry in Canada? My gut says it's probably government getting in the way as usual, and maybe some gold rush style explosion of startups, all but a few really actually viable businesses and we're still in the weeding out the non-viable businesses.

Demand not as strong as predicted?

- - - Updated - - -

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Or the investors that made the companies have unbelievable market cap

This seems to be the culture in the stock market for the last few years. Insane valuations on companies that have yet to earn a cent of profit. Reminds me of the dot com bubble in the late 90's. It's more gambling than investing.

[ExtraSlow]

Demand hasn't been the issue.

[Disoblige]

Back on track to stonks...

With Alberta vape lifted and Ontario with some juicy news on Monday, might be a good short term trade opportunity but long term... no bueno.

[mr2mike]

Great market to play the volatility and swing trade or day trade.

[msommers]

More fun to go to the casino