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The Great Green North

Pot stocks jump after report says Coca-Cola and Aurora in talks to brew marijuana-infused drinks

  • Aurora rallied more than 15 percent in Canada while Tilray jumped 7 percent after a report says Coca-Cola is in talks to brew weed-infused drinks with Aurora.
  • Corona beer maker Constellation Brands upped its bet on the industry last month, announcing an additional $4 billion stake in Canopy Growth.
  • Molson Coors, too, announced in August that its Canadian unit is entering into a deal that will develop cannabis-infused beverages in Canada.

https://www.cnbc.com/2018/09/17/pot-stocks-jump-on-news-that-coke-and-au...

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

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Sweep the Leg wrote:

^^I was talking more about wine and spirits, not so much beer. If a parallel has to be made, I’d say weed is most like wine. Yes, there’s obviously a bigger market for two-buck chuck and boxed wine (which is actually pretty ok), but the high-end wine market is also huge. 

Honestly, I’m not sure we’re really even disagreeing with each other. My main point was there’s going to be a market for all types of weed.

which i agree with. i think there will be a good sized market at the high end. probably 20%-50% of the flower market will be high end. the problem is that literally every single pot producer is going after and gearing production for this 20%-50% of the flower market which amounts to only 10%-20% of the total cannabis market (based on current flower to edible/oil mix). in order to make the low end profitable, you need to produce more cheaply. ~80% of production will need to shift to lower end. nobody is doing this. this involves writing off facilities that are too expensive to produce the junkier stuff, new capex and much longer periods of unprofitability than literally everyone is expecting.

Why do you think current market share percentages are relevant? I’m pretty sure moonshine consumption decreased after the 21st amendment was passed in the states, even as alcohol consumption increased. Comparing a black market to a legal one just doesn’t make sense. 

I’m not saying you are wrong, MLA. I’m just saying that I’m not buying your logic.

 Imagno/Getty Images)

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

these market share percentages are for places where weed is already legal. majority of the market is oils and edibles (generally made from oils).

Aurora stock halted.

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

Update, I’m up 250% on my MEDFF (currently holding ACBFF, after MEDFF acquired) as I approach long-term capital gains. My US plays have traded sideways with lots of vol; however, they are earlier in the trend. I’ve let my ACBFF run, so Canada is about 2x the weight of my US companies in my MJ sleeve.

I think the liquidity influx from an NYSE listing for ACBFF will drive the stock up, at which point I will likely trim and redeploy. Taxes are a consideration, however. I bought four times, so I can work the tax lot game, but it won’t help that much.

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

With Canada going full legal tomorrow, I could see a temporary pullback. 

Everyone, including their grandmother’s blind dog is hyped about weed businesses at the moment. 

People with no weed experience are getting loans and opening up their own stores. Some of the demand will just be a temporary surge from the sheer influx of retailers, some of which are too optimistic,. Wait a few months to see what the true demand is.

Also, don’t ever put weed in the freezer. Keep your dank in a glass jar with a perfect air seal, and at room temperature in total darkness. Fill the jar completely, but the buds should still be able to move a bit. Every now and then go shake up the jar a couple times. Leave it like that for a year, or two, It’ll age like a fine wine. 

MPX, which I first mentioned on 8 June, 2018 here (although I’ve owned it longer), just announced a transaction for approximately a 30% premium in iAnthus shares. That’s two take outs since I started posting in this thread, with similar premiums. M&A market becoming established.

Edit: acquisition is actually greater than 30%, since the transaction is only for MPX’s US based business. MPX shareholders will retain shares of a company owning the international businesses.

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

Yayyywork wrote:

ACBFF just pumped 55mm into my pre-ipo play TGOD for 18% stake. Also includes options to increase stake when hitting milestones and a supply contract for up to 20% of production

ACBFF (soon to simply be ACB, as they are listing on NYSE on 10/23) sold their entire stake a couple of days ago.

you basically need to come from a target school pedigree/work at prestigious firm in the US/have a really good connection.

- AF hivemind

brain_wash_your_face wrote:

MPX, which I first mentioned on 8 June, 2018 here (although I’ve owned it longer), just announced a transaction for approximately a 30% premium in iAnthus shares. That’s two take outs since I started posting in this thread, with similar premiums. M&A market becoming established.

Edit: acquisition is actually greater than 30%, since the transaction is only for MPX’s US based business. MPX shareholders will retain shares of a company owning the international businesses.


Although I bought it for no reason other than it looked like a decent stock, I’m happy to have lucked into the gains on MPX.

Still long APH and CGC and that’s about it for me. These valuations are making me a little nervous, although I would have said that in BTC when it broke that 2 year stretch in the mid 400s (I sold at mid 700) and it ended up going to 20k so what do I know about bubbles?

top sellers in Ontario in the month of October… CBD capsules that can be made from low grade cannabis and flowers priced at levels that are competitive with street value, not the guys who are focused on high quality, high cost weed. maybe things will change with time but i’m thinking not. the vast majority of consumers can’t tell the difference or nor about the difference between $9/g greenhouse weed and $15/g greenhouse weed. why not introduce $5/g outdoor grown and see how many move down the ladder. as i suspected, majority of flower market is at the low end, not high end, despite the most recognizable brands being at the high end.