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1. I never fully appreciated how geographically biased investing in the cannabis sector is & how it colours our viewpoint. Cannabis isn& #39;t dead as an investment. Canada got it wrong, due to greedy suits & ineffective gov& #39;t, but the U.S. hasn& #39;t even started. It& #39;s 2015 on that side.
2. No doubt the U.S. has big hurdles & challenges, just as Canada had 4-5 years ago. The cheap founder paper of most big MSOs still has to churn. The SAFE Act has to pass the Senate, so capital can be accessed that isn& #39;t the predatory Bay St. stuff that& #39;s strangling CDN cos.
3. STATES Act will follow that. Or full decrim/legalization if DEMS win in 2020. But there are already cos. who know how to produce quality branded product in legal states & there will be an estimated $60-80B market that hasn& #39;t really formed yet.
4. Yes, it& #39;s essentially a commodity. But branded CPG is the American specialty. There will be few winners & many losers there, of course. Think FAANG. But it still has to go through it& #39;s boom & the much deeper Wall Street pockets still have to play the game.
5. I saw a comment on here where someone asked a respected guru with a massive following what he thought of $GTII. He said he didn& #39;t know who they were. As of last reported Q, they have 2x the sales of $APHA already. That was the point I realized the U.S. hasn& #39;t even started.
6. Once MSOs aren& #39;t primarily owned by CDN retail, off the CSE/OTC, have access to capital at non-predatory terms, & eventually stop paying the antiquated 280e tax, the U.S. cannabis market will start to reach the later innings. Right now, it& #39;s batting practice.
7. But they have to get there still & it& #39;s an uphill climb so being able to self-sustain in terrible market conditions is important. Like Canada, there are only 3 on the U.S. side that have positive EBITDA/Operating Income:
8. $TRUL, the sector leader by a wide margin in profitability, $PLTH, & $CXXI. That& #39;s it for U.S. cos. that trade in CAN as $CWEB just turned negative. On the OTC/U.S. side, you can add $MRMD (hemp), $GRWG (ancillary), $IIPR (RETI), the latter three not being pure cannabis plays.
