How to Fix Canada's BROKEN Cannabis Economy - Market Update - Nov/14/2019
In this episode we explore the pains and issues Canada is having.
What are the core problems? What are the solutions? Will these problems be solved? When?
- Forecasting the Canadian Weed Stocks going forward (how to play the volatility)
- The Good News: Many of the problems are fixable and will eventually be solved
- The Bad News: We are 12-24 months away from any earnings relief. Many companies won't survive
- Explaining today's issues in terms of Supply & Demand
- Companies are missing revenue guidance (HEXO, OGI, Canopy, etc)
- Large build-up of inventory in the system (exploring the numbers)
- 3 Core Problems: Retail, Marketing and Distribution
Retail: Ontario is far lagging behind and needs 20x the retail stores
- Why this problem might get solved and how long it will take
- Why private owned retail is SO important
Marketing: Why the strict rules are hurting the system
- Why retail can help solve this problem
Distribution: Government playing middle-man causing huge issues
- This may change in Ontario but unlikely to in Quebec
Picking Winners: What to look for in companies that can weather the storm
Conclusion: How investors should act going forward knowing what is coming next