Government projections for cannabis sales in Canada are expected to be some C$5B in legal cannabis for 2019. The problem is that the vast majority of major players are going to be coming online with their biggest facilities over the summer and through to the end of the year. There is a 3-4-month "seed-to-weed" factor that needs to be taken into account. I question if there will be enough supply to keep up with the demand for products through the rest of the year. Tesla - Consumer Reports Downgrade - Here Is Why
Then, there is a secondary issue: The growth of usage over the course of the next 1-2 years. Given a comparison of Canada and Colorado, sales could increase some 45% by the end of 2020 and then another 35% the year after that. From the top major producers, there will not be enough supply to hit the market over the course of the next few years to keep up with demand. Four Biotechs To Buy Today
This Marijuana ETF since Dec 2018, has moved ahead over 50% showing the high volitility in the industry and why we should be circuling back to the small cap arena that is playing catch up . Stocks such as Pharmagreen Biotech - OTC PHBI
MARIJUANA ETF
Given this backdrop, we believe that Aurora Cannabis (ACB) may be able to capitalize handsomely under that backdrop. Cannabis is being commoditized down to the lowest cost-basis possible. And, with their ultra-automation approach, Aurora Cannabis may have the best blueprint for rolling out additional supply and succeed in an ultra-competitive environment.
AURORA
What Can Canada Expect
How much cannabis will Canada need is a question that elicits a multitude of responses. We are driven by data and usually point to that as the basis of our thinking.
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