An update on my last article on Aurora Cannabis
There is a lot of speculation surrounding Weed companies. It's similar to the tech boom back in 2001. Companies with no profits or solid foundation are going public and people are buying into them simply because they are associated with what's hot right now:
WEED!
There are a lot of investors out there in the Steemit community and other places as well. I felt as though I had to bring you all value by finding a quality company within this space. This value derived from fundamental business value, and technical value in it's price and chart.There are different types of companies in the market place you can invest in. Biotech companies trying to create the next THC/CBD derived cure for diseases. These companies are tricky to invest in, as very few biotech companies succeed, there is a ton of federal regulations, and profit margins are razor thin without success. Sin Companies are companies that are commonly tobacco or alcohol companies like Heineken and Coors. These companies are already behemoths and it is hard to imagine them having massive growth already, as large companies become sluggish as they have more liabilities and moving pieces, though may be the safest bet in the space.Brand Companies are simply retail companies that profit from in store purchases of product. They typically partner with big producers and sell their product at retail prices and create a brand to sell to the public through clothing. These companies typically have astronomically high marketing costs and really only have one source of revenue, the consumer.Production and Cultivation Companies are the companies I am keeping my eye on. These companies are right in the sweet spot of things, in my opinion. They have the potential to make income off of the retail brand companies, the biotech companies, the Sin companies, and even the consumer. No matter what happens in the weed space, people will need product.
Whether the majority of that product is for medical cures, or retail and recreation, SOMEONE MUST GROW THE WEED.
So for me, the choice of sector within the marijuana is easy: The producers.
I found one producer that has a lot of upside for growth, is at a relatively "cheap price" compared to the price of its competitors shares, and looks healthy financially from a fundamental perspective.
Yes, I have Aurora on my watch list and notice it has come down to your price point since your earlier post.
Not only must someone grow the weed, but someone has to package it as well. Which led me to KushCo Holdings Inc. (KSHB). KushCo supplies the cannabis industry with compliant packaging which may make a nice compliment to Aurora as a production play.
Sort of like owning a gold-mining stock while also investing in the company selling the display cases and equipment as well.
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Way to diversify. I figure a lot of smaller companies may be bought up by the bigger companies like ACB and CGC, so that may be a good exit for you.
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