Quote from: jaysabi on September 19, 2018, 02:59:49 PM

The newest fad volatile industry: marijuana stocks.

I didn't even know that Marijuana stocks are a thing, and before I know it, stupid fucks enter that market as well.

Quote from: jaysabi on September 19, 2018, 02:59:49 PM

Yes, legal weed is currently in a bubble. People are being just as stupid here as they were with Bitcoin. Canopy currently has a market cap of $12.3 billion on sales TTM sales of just under $88 million. Tilray is far worse with a market cap of $19.7 billion on TTM sales of $27.6 million. Anyone buying Tilray at these prices is making an astoundingly risky bet for what I consider to be very limited upside. The other two companies, Aurora and Aphira, fund their operations by printing shares and devaluing current investors. I consider them to be the spam coin equivalent of the two larger companies. There are dozens of others, these are just four of the largest I consider to be the biggest players.

Insane stats, its a marijuana stock, so people would even bet their entire live savings on it.

Quote from: jaysabi on September 19, 2018, 08:26:48 PM

Part of the reason these companies have to fund acquisitions through share issuance is because they are cut off from a lot of traditional loans and funding by virtue of their business. In the US, for example, none of these companies would be able to get a line of credit or even a bank account because any bank that deals with them would be violating federal law. So they fund acquisitions through the only currency they have available to them: their own stock. It makes sense logically, but it's not something you want to see as a stockholder because your ownership is being rapidly diluted.

As for the market potential, Canada is a very limited market (where these companies are based) but Tilray and Canopy have deals with European countries to export and Canopy is setting up overseas operations for a time when these countries would rather have domestic production over imports, so they are expanding their addressable markets. The US is a major untapped market but I feel like these prices already factor in full federal legalization and a mature market. The valuations are quite lofty.

Canada is definitely not the best markets for marijuana from what I have heard, US would be the best. But its a "federal crime". Lol. Just like the 9/11.

But don't worry, the majority of these marijuana stock investors would be from the US, they are just in disguise to protect themselves.