Opinions
Cole Kachur
Organigram Holdings
OGI-X
COMMENT
Apr 11, 2017
Stock price when the opinion was issued
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Chart shows some pretty big swings. What is positive currently is that there is nice little upward trend, but is probably going to be in jeopardy based on the gravity affect. If it got below $2.70, he would say there is probably something wrong with the story. When you have a new industry like this, you will often get some rationalization, and in this new cycle, he expects it will happen much sooner. It’s really hard to tell which are the winners.
Contender, go by the wayside, or be acquired? Be careful, takeout premium is built in. If no takeout, there could be a blow up in the stock. Stuck in no man’s land, no R&D on pharmaceutical side, no export agreements. Tough for them to compete in exports and pharmaceuticals when the market price of wholesale marijuana reaches a plateau in a year or two.
Marijuana stocks are tough to get a read on. They’ve all moved in a similar direction. He doesn’t know what the industry is going to look like or what the regulation is going to be like and how everything is going to play out. This is an industry in its infancy, but as a portfolio manager, it is not something he would look at. Once there is some clarification on what future legislation is going to look like, federally and provincially, then it will be a lot easier to determine which stocks are the ones to own.