The Pie is Not Big Enough.
5 Predictions as to what this means for the future of cannabis.
Dear Friend and Subscriber-
I have some bad news...
The cannabis pie is not big enough for everyone.
For years, activists and advocates have championed the message that there is enough room for everyone; that the cannabis pie is so big that everyone can get their fair slice without taking away from others. I hate to be the bearer of bad news, but this is outright wrong. And we know, because we have been lucky enough to live in a time where both extremes of the spectrum–limited competition vs. unlimited competition–exist as the cannabis industry matures in a patchwork fashion.
Most cannabis companies are losing money.
Sadly, this is a fact. If you've wondered why it's been radio silent regarding my Cannabis Investment Project that started last year, here's why: I turned $150 into ~$30 (as of this morning). Sure, there's some trading knowledge that can be gained from that, but the real insight is that, across the board, all of the companies that I bought a single share in have seen massive losses. And, if you look closely, the only "growth" you'll see in 99% of this sector is acquisitions; it's horizontal expansion, not vertical growth.
The market cannot sustain a surplus of supply, and, if everyone's in the space, there's too much pot.
Let's briefly look at four distinct markets:
California: The most mature cannabis market in the U.S., with countless producers and the world's 5th highest GDP.
Colorado: One of the two oldest recreational cannabis markets in the U.S.
Oklahoma: One of the newest and fastest-growing markets, with the most licensed cannabis businesses per capita of any U.S. market.
Florida: A medical oligarchy that is heavily restricted, represented primarily by corporate interest, and prohibitive in nature (though it's getting better) in regards to product availability and cultivation.
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