Opinions
Bruce Campbell (2)
Organigram Holdings
OGI-X
COMMENT
Apr 26, 2017
Stock price when the opinion was issued
You might be interested:
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 sold off a few days before the legislation was getting tabled. There is a lot of supply of stock coming on right now with a lot of companies going public. After everything they’ve gone through, he still thinks they are one of the best operators, and that the stock is worth more than the current price. Their relationship with TGS out of the US is really interesting, where they are looking at the extracts and other products. That is probably not going to come into play for the company, but certainly down the road with the next step of legalization, it will.