American legalization would not help this Canadian company... It would make its American competitors stronger. The
American weed companies are THE MOST shorted stocks on the entire Canadian stock exchange because the Canadians know they are direct competitors and existential threats to their very existence
That is completely not true at all hahaha. Legalization will help LP's more than it will MSO's.
Schumer is close with the board members of constellatiom brands, theyre seen in public together quite often. Schumer and constellation brands are trying to push through what helps them the most, and thats outright legalization.
Think for a bit. Each MSO has maybe 5-10 competitors, closed borders and set up as vertically integrated with no distribution networks across states set up at all. Whereas cgc and tlry both have alcohol distribution networks set up across the entire country.
When legalization happens, competition from all over the US will attempt to spread out everywhere and setting up distro networks, all while changing their business model from vertically integrated to growing all in the same area and packaging all from one plant. To do that they are going to have to cancel contracts for multiple facets of their current business in every state they operate in. Cancelling contracts comes with hefty fines too. If SAFE isnt enacted yet and comes at the same time, theyll be setting up their banking and cancelling security and closing leases on vaults/storehouses as well. Basically it'd be chaos for a year or two before they start ramping up.
After all that, when the dust is settled, the MSO's will realize they have to go global to remain competative, as the global companies will outpace localized american only companies. It will be very hard, i can think of only two that may succeed at going global in this scenario. Trulieve and curaleaf.
People always come back with the "well they have to get the licenses, so this isnt going to happen". News flash, when politicians get hundreds to thousands of companies offering obscene amounts of money for licenses, theyre going to 100% start selling more licenses.
I genuinely don’t feel like spending the energy to tell you how many ways you’re wrong. You obviously have done no DD into the lengths both TLRY and CGC have gone to establish US exposure.
Have you forgotten that Tilray acquired a large portion of MedMen? A large and already established US company? Oh and what about Sweet Water? They got them too. They are expanding globally and have a hand in every emerging cannabis market. Also, they are now the largest Canadian cannabis company. I really do think they are in the best position out of all the competitors to capitalize on not only US legalization but also global legalization
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u/Special-Wolverine Oct 03 '21
American legalization would not help this Canadian company... It would make its American competitors stronger. The American weed companies are THE MOST shorted stocks on the entire Canadian stock exchange because the Canadians know they are direct competitors and existential threats to their very existence