ECON Legal pot companies ALL about to be in BIG trouble

[MinnesotaSmith]

I have long thought that what would take them down would be 1) the Feds making it tough for them to operate (via IRS rules, severely discouraging banks touching them, etc.) and 2) state taxes/fees being so high that illegal growers and sellers would still have most of the market. Both of these are in fact serious issues.

===================================

https://www.forbes.com/sites/stephe...hich-may-be-a-sign-its-all-over/#654977885775

Oct 21, 2019, 08:49am
Aurora Cannabis Is Dumping Its Pot, Which May Be A Sign It’s All Over
Stephen McBride

The editor of RiskHedge Report

"Rumor has it the whole countryside smelled like popcorn…

During World War I, American farmers were making a killing. With nearly all of Europe locked in battle, it fell to America to feed the world. So American farmers grew more and more crops to meet the exploding demand from overseas.

But when the war ended and the world started to recover, crop prices plunged. Struggling to make ends meet, American farmers tried to make up for it with volume. They grew more… and more… and more food.

Then the Great Depression hit…

Demand fell off a cliff. Barns were filled to the brim with crops. Certain crops got so cheap that farmers famously dumped them in the river to lift prices.

Some folks even burned corn instead of coal in their stoves. At times, the entire countryside smelled like popcorn in a movie theater.

I’m telling you this because a similar scenario is playing out in the pot industry.

As I’ll explain, companies like Aurora Cannabis (ACB) are “dumping” part of their harvest… because they simply grew more pot than they could sell at a reasonable price.

A New Chapter in Pot’s History

In 2012, a wave of pot legalization hit America.

That year Colorado and Washington legalized recreational pot. It was the first time Americans could lawfully smoke pot for pleasure. Since then, a dozen states decriminalized pot.

But the last year marked by far the biggest milestone in America’s pot decriminalization. Pot became legal all over Canada. It was the second country in the world to legalize pot for all uses countrywide.

Canada Opened Up the Biggest Pot Market

After passing the historic legislation, Canada has become the biggest pot market on earth.

Hundreds of pot producers sprang up to take advantage of this once-in-a-century opportunity. This has led to a boom in “pot stocks.”

Take a look at the mind-boggling performance of top Canadian pot producers until last spring.

This is Aurora Cannabis, America’s favorite pot stock...

Here’s Canopy Growth, the world’s largest pot producer...

And Cronos Group Inc., the fourth-biggest pot stock…

But after peaking in the spring, most pot stocks crashed 50%+. Many investors took this as an opportunity to buy them for cheap… hoping they would soon recover.

But here’s the thing…

The best days for pot stocks are over. Pot stocks will never recover to their prime-time heights. And there’s one simple reason for that.

It All Comes Down to Demand and Supply

Let me show you the most important chart in the pot industry.

It shows how pot inventories are growing… and growing… and growing… just like crop inventories did in the 1930s:

In just a year after Canada’s historic pot legalization, pot producers built up a massive surplus of pot. In fact, only 4% of pot produced in Canada in July has been sold!

The rest is being stored in warehouses... just like crops during the Great Depression.

For much of the past century, laws held back pot production like a dam holds back a river. But Canada threw those floodgates wide open, and the market was flooded with millions of kilos of pot.

Now there’s more pot in Canada than folks will probably ever need. And it’s only getting worse.

Pot Producers Are Painting Themselves into a Corner

Have you read the news about cannabis producers lately?

All they seem to talk about is “increasing production capacity.” Is growing more pot the answer?

Well, when there’s too much product on the market, you want to offer the best price, so buyers choose to do business with you instead of other sellers.

Pot producers are now falling over themselves to ramp up their production capacity, which would push their costs and, in turn, pot prices down.

Aurora Cannabis plans to expand its production capacity from 150,000 to 500,000 kilos per year by mid-2020. Canopy Growth is also on track to produce 500,000 kilos of pot per year.

Think about it… you could roll over 4 billion joints with the pot from these two companies alone. And many more pot producers will have the capacity to produce millions of kilos of pot in a year from now.

The thing is, the market doesn’t need millions of kilos of pot. Pot producers are already making more pot than can ever be smoked.

Investors Can’t Get Enough of Aurora Cannabis (ACB)

Aurora Cannabis is Canada’s largest cannabis producer and one of the most popular pot stocks on earth.

In fact, this stock has recently topped Apple as the favorite stock among American Millennials, according to Business Insider.

Like most pot stocks, Aurora Cannabis has taken a beating and crashed over 50% since the beginning of the year:

As I mentioned earlier, most folks think this is a good buying opportunity. I think you’d have to be nuts to touch this stock right now.

I wouldn’t be surprised if it gets cut in half again.

Aurora Cannabis Is Building “Ghost Greenhouses”

Aurora Cannabis is losing an outrageous amount of money, and the losses are growing by the day. In Q3 2019, the company lost $160 million… that’s 8X more than a year ago.

The company is investing millions into new farms and greenhouses spanning millions of square meters… most of which are simply unused.

In Q3 2019, Aurora Cannabis grew only 15,600 kilos of pot, which means it utilizes only 1/3 of its facilities. And as I mentioned before, it plans to expand 7X by 2020.

A Dirty Secret Behind “Strong Revenue”

And here’s the key…

If you look at Aurora Cannabis’s most recent financial report, you’ll see its revenue grew 52% in the last fiscal quarter, compared to the previous quarter.

That sounds good… but it’s hiding a dirty secret.

Aurora Cannabis is actually dumping part of its harvest into “wholesale,” which means it is selling it for cheap… according to a line buried deep in the company's Q4 financials.

Last fiscal quarter, the company dumped $20 million worth of pot, a 869% increase from the previous quarter. It is doing this because there’s not enough demand from consumers.

I expect this trend to grow as pot companies continue to ramp up production and flood the market with more pot.

My recommendation: Stay away from Aurora Cannabis and other big pot producers. The pot party is over. There are better and safer ways to earn profit in the stock market."

 

[Publius]

A smart biz owner will take them to court over this and they will win big monry.

 

[Doat]

Is big Pharma fearful of loosing trillions of dollars in prescription and otc drugs? Are they putting on the heat and pressuring the government? The legalization of marijuana has been due to the popular vote of the people. Is that process of democracy also going away? Overruled by the deep state? I have become very skeptic regarding anything the government gets involved with. The web is growing every day.

 

[Sub-Zero]

Refer to the Netflix documentary, "Murder Mountain" to see MNSmith's point number two played out. CA gave all the illegal pot growers a last chance to go legal, and most of them couldn't make it work with all of the fees and taxes.

 

[Kathy in FL]

Supply and demand will win every time. I just returned from Canada on business. Everywhere you looked there were pot businesses but no customers in the shops. It was a joke with the investor group. The country has really strong anti-smoking laws and they are now doing the same thing with vaping. And if you need it for medical reasons you go to dispenceries not shops catering to the general public that are not price controlled. And for mellow people still prefer a glass of wine.

 

[West]

Not that I would know... but heard it from a friend.... $1000 a pound for good quality dried green skunk buds from illegal grower in extream No. Cal. That's less than $2. A gram and at the dispensaries the cheaper quality dried buds are going for $10 a gram on average.

 

[hiwall]

As far as growing a surplus in summer- you obviously have to grow the pot in the summer for sales over winter and through the spring.
More telling would be pot inventories in May. If there was still a big surplus then it would tell a different story.

 

[Wise Owl]

Isn't a lot of that used for oils and tinctures, salves and such? I would think it would take a lot to make those items. It's not all just for smoking.

 

[rlm1966]

Say what you want but Aurora Cannabis bought my land. When Canada was looking at legalization it was selling on the OTC markets and I bought in at .40 per share. Then we decided to by land at about the time it first hit 10.00 per share and I sold it all to buy the land. Now that it is back into the 3 to 4 dollar range I am considering buying back in as I think with some of the deals they are working on including overseas they could bounce back to the 13-15 dollar range in the next couple of years. They may fail but they are one of the few I think will come out as a still independent company in the coming years.

The real interesting thing with pot stocks is to look at the other non-pot but legal vice companies sniffing around and buying into some of them. Some tobacco companies seem to be looking at entry points as well as some adult beverage companies. When all is said and done I believe Aurora Cannabis is one of the ones that may remain independent and with the resources to compete with the big boys.

Take these opinions with a grain of salt and this is definitely not investment advise, but only my humble opinion.

 

[Millwright]

I've been thinking that its a bubble that's about to go up in smoke.

Most towns have at least one dispensary on every block, with a "grower supply" on every other block.

Out in the sticks, there are some barns with new 400amp electrical services and big air conditioners & propane tanks.

With legal grow status, you aren't worried about getting shot at when driving in the area.


As far as stocks, I think competition will level them out after a bit.

 

[Laurane]

In Canada, in my town of Penticton of 33,000 there are at least 8 Cannabis stores, and Penticton Indian Band built a large building on their land and have 4 more across BC. There are always buyers at that "Indigenous Blooms" even when the gas station attached is empty. But the Band is maybe their best customers, which is a problem for them, as they are a hardworking, organized group investing in many businesses. It could be a problem for their young people in the future......

But so many people grow their own in BC and have for years that they don't have to patronize these stores. The Indian Band has aligned with other Bands in other provinces to build facilities for medical marijuana (cannabidiol) and have 3 startups going.

Canada maybe overproducing, but the medical end may use a lot of that inventory as people realize it helps with many complaints.

 

[parocan]

Most people I know including me have stuck to the people we have always been getting it from.
It's cheaper and way better. I've been seizure free 11 for years now thanks to it.

 

[Melodi]

There are rumors that Mexico is about to fully legalize it too, at which point the US Federal Government has two choices:

1. At least take it off the "no known medical uses" category (that's a lie anyway even a lot of conservative doctors admit it has SOME medical uses) and even better just legalize it for personal use (at least).

2. Continue to fight an expensive, never-ending battle on the scale of prohibition that the majority of the public is no longer on board with (including millions who will never touch the stuff unless it is in a prescribed medication) and continue to lose billions.

There are serious issues where States got greedy and made the taxes so high, the illegal market is booming (it is the same with tobacco here in Ireland, people just fly to Germany or Eastern Europe with six months to a years legal supply or they buy from the black market).

There are also issues with huge numbers of "investors" jumping on the "coming thing" when while there is a large market it isn't unlimited.

I noticed Big Pharma trying to get states to ban the personal growth of the stuff so they can keep the price jacked up, after all even most medical patients can get most of what they need for oils, tinctures what-ever from three to five plants; they don't need thousands of them.

There are many plants growing in our garden (and the gardens of many people) that can have potentially deadly side-effects if misused, Cannabis is much safer than almost all of them unless someone has an allergy.

Some of them even have psychoactive side effects but they are still legal to grow, just let everyone grow it if they wish; if you cap the number of plants (they way the cap how many gallons of homebrew you can make) a lot of people would be fine with that.

But, it undercuts the market for both Big-Pharma and States that think they have just found the new "cash lotto."

 

[twobarkingdogs]

One of the things hurting the legal pot businesses in the US is the lack of the ability to sell across state lines. If washington were to have a surplus but colorado were to have a shortage then normally a business would transfer supplies from one location to the other. However federal laws on interstate commerce prevents that because pot is illegal at the federal level.

Once that changes watch for these stocks to skyrocket.

tbd

 

[Kathy in FL]

One of the things hurting the legal pot businesses in the US is the lack of the ability to sell across state lines. If washington were to have a surplus but colorado were to have a shortage then normally a business would transfer supplies from one location to the other. However federal laws on interstate commerce prevents that because pot is illegal at the federal level.

Once that changes watch for these stocks to skyrocket.

tbd

Or potentially crash as there is no more captive market or pot tourism. It can swing either way.

It will never be as big as cigs got, the reason being you have all of the people that want places to be smoke-free. Then you have worker's comp and insurance companies that charge really high prices for people who smoke … whatever you smoke … or won't insure a workplace at all if someone can't prove they are "drug free" while doing their job. Pot is still a "keep it at home" type habit. I smelled some smokers while in Canada … Ontario, PEI, Quebec, NB, and NS. What was funny was that I wasn't the only one who made a face at the smell as people would pass. And I heard plenty of people - Canadians of all flavors - who would then complain or make a rude comment about the person who smelled of pot. Most people didn't seem to care that they were using … they just didn't want it in their space or face. As a result, the "pot head" comments were fairly critical of users that did it out in public.

 

[Ragnarok]

And for mellow people still prefer a glass of wine.

Not me...

 

[Knight_Loring]

CBD oil has healed my arthritis. The surprising thing is... months and years of pain was completely gone after the third day of taking the CBD oil.
Now, I only take it for 4-5 days in a row, and stop until the pain starts again. it is taking longer and longer for the pain to come back.

I have read that there are so many possible cures of diseases from pot and hemp.

Future seems bright for some pot companies, future may be dimming for drug companies.

 

[intothatgoodnight]

CBD oil has healed my arthritis. The surprising thing is... months and years of pain was completely gone after the third day of taking the CBD oil.
Now, I only take it for 4-5 days in a row, and stop until the pain starts again. it is taking longer and longer for the pain to come back.

I have read that there are so many possible cures of diseases from pot and hemp.

Future seems bright for some pot companies, future may be dimming for drug companies.

Out of curiosity - what specific brand/type of CBD oil are you using for your pain relief?

Any noticeable side-effects not specifically related to pain relief?

I've been hearing that certain specific brands/blends are better for some illnesses, while other brands/blends are good for other illnesses.


intothegoodnight

 

[Kathy in FL]

Not me...

You should see the massive vineyards (and apple yards) between the Niagara Falls area and Toronto. Amazing. The Wineries there are thicker than they are in California. And the greenhouses are HUUUGE. Amazing operations. Same thing in the Annapolis Valley in Nova Scotia.

 

[Kris Gandillon]

There was a segment about this (legal vs illegal growers and the challenges) tonight on 60 Minutes.

 

[Ragnarok]

You should see the massive vineyards (and apple yards) between the Niagara Falls area and Toronto. Amazing. The Wineries there are thicker than they are in California. And the greenhouses are HUUUGE. Amazing operations. Same thing in the Annapolis Valley in Nova Scotia.

Wine gives me a splitting headache... I can't drink it.

 

[twobarkingdogs]

The industry is also being hurt by the bedroom growers. These are folks who started growing while pot was illegal who have kept it up even though they can now buy it at the corner store. Or new comers who have taken up the grow hobby now that it is legal.

I have a friend who retired early and now lives in a semi-rural area in colorado who I visited about a year ago and himself and most surrounding neighbors I met all grow for personal use. These were outdoor gardens with pot plants over by the tomatos. They talked about the different strains each grew and they gifted and traded among the neighborhood. But the rules were such that they could not sell any excess at the farmers market as the government prevents that

But like most people do not have home gardens for veggies I expect the fad for growing your own pot to slowly fade off and be replaced by buying it in the stores. Just like home gardening it won't stop completely but also like tobacco most smokers will not go to the trouble to grow, harvest and cure when they can go to the local store and buy the product.

At which point the pot industry will become like the big tobacco industry with branded products and more commercial marketing

But as I said previously until federal laws are changed and interstate sales and transportation can occur the industry will not fully develop here in the US.


tbd

 

[Melodi]

Home growing is likely to continue for two reasons:

1. Costs in States where taxes are insanely high and growing makes a lot more sense.

2. People who really want specific strains, especially medical patients that are looking either for specific types of high THC for nausea and some types of pain relief (not just psychoactive effects) or the really high CBD (helps with different sorts of pain).

Some of the specialty strains can be hard to buy or are very expensive in pharmacies, but relatively cheap once seeds are established and grown (even with the costs of grow lights etc).

But yeah, I think over time, especially once it is fully legal and once the drug companies realize they can't really put their genie back into the box by trying to make bedroom growing illegal; then more people will simply buy at the dispensary, the grocery store and eventually maybe the farmer's market.

This whole 80-year nonsense has ruined countless lives with a sadly high body count, not from the plants but from the wars that were caused by making them illegal yet still desired product.

I am waiting to see if Mexico follows through on full legalization, that news came out around the same time as the failed arrests and shoot out, so it may be on the back burner for some time, we shall see.

I just wish Ireland and the UK would get some sanity on this topic, they've been forced to allow medical after a couple of high profile cases involving kids but in Ireland, it can't be given to pain patients but thankfully the GP's are up in arms about that one.

If any government wants to really bring down the use of prescription (and non-prescription over here) opiates, legalization of cannabis really is the place to start - doesn't work for everyone no drug does, but it does work for many and is safer than most other drugs, especially in proper dosages from known sources.

 

[Mercury3]

But like most people do not have home gardens for veggies I expect the fad for growing your own pot to slowly fade off and be replaced by buying it in the stores. Just like home gardening it won't stop completely but also like tobacco most smokers will not go to the trouble to grow, harvest and cure when they can go to the local store and buy the product.

tbd

The problem is the savings is enormous and it grows with little to no work. I normally grow one plant/year right in between the tomato plants and it blends right in and grows like crazy. Just water it.

Here in Colorado the law says one can grow six plants but only three can be harvested at a time. I can't imagine anyone ever needing more than one plant. One plant is actually to much so I also make CBD out of mine by burning off much of the THC in the oven. This also produces CBN which is one of the neglected cannabinoids but has additional benefits. CBD oil is expensive as hell to buy but can be made almost dirt cheap.

 

[Mercury3]

Home growing is likely to continue for two reasons:

1. Costs in States where taxes are insanely high and growing makes a lot more sense.

2. People who really want specific strains, especially medical patients that are looking either for specific types of high THC for nausea and some types of pain relief (not just psychoactive effects) or the really high CBD (helps with different sorts of pain).

Some of the specialty strains can be hard to buy or are very expensive in pharmacies, but relatively cheap once seeds are established and grown (even with the costs of grow lights etc).

But yeah, I think over time, especially once it is fully legal and once the drug companies realize they can't really put their genie back into the box by trying to make bedroom growing illegal; then more people will simply buy at the dispensary, the grocery store and eventually maybe the farmer's market.

This whole 80-year nonsense has ruined countless lives with a sadly high body count, not from the plants but from the wars that were caused by making them illegal yet still desired product.

I am waiting to see if Mexico follows through on full legalization, that news came out around the same time as the failed arrests and shoot out, so it may be on the back burner for some time, we shall see.

I just wish Ireland and the UK would get some sanity on this topic, they've been forced to allow medical after a couple of high profile cases involving kids but in Ireland, it can't be given to pain patients but thankfully the GP's are up in arms about that one.

If any government wants to really bring down the use of prescription (and non-prescription over here) opiates, legalization of cannabis really is the place to start - doesn't work for everyone no drug does, but it does work for many and is safer than most other drugs, especially in proper dosages from known sources.

Melodi your postings are usually spot on. For me it's number 2. I taylor mine from indica and produce for VERY (I like a little THC in my formula but very low) low THC but high CBD & CBN. My oil has a lot of health benefits but doesn't even get you high unless you take a large dose. Even then the effect is very mild but helps with sleep.

My wife has horrible insomnia and it's the only thing that works well. She was on Ambien for a few years but we got her weaned off of that because I think it's dangerous.

Store bought CBD oil at almost $200 dollars for a tiny bottle is a rip off when one can make their own dirt cheap. If one doesn't want any THC at all in it simply use hemp instead of cannabis.

 

[Melodi]

Yep, and as long as CBD oil is about 200 Dollars (or Euros) a bottle, and you can make it for about 5 dollars (perhaps a bit more the first time), a lot of people are going to grow a couple of plants and make it at home.

 

[WalknTrot]

Yep, and as long as CBD oil is about 200 Dollars (or Euros) a bottle, and you can make it for about 5 dollars (perhaps a bit more the first time), a lot of people are going to grow a couple of plants and make it at home.

And sell it. The illegal trade is not going away on the oil. Same with the recreational stuff. The plant is too easy to grow and process everywhere.
I'm real curious as to how serious the states are gonna be enforcing "legality"/taxes/growing permits and suddenly we're right back where we started from.

 

[Ragnarok]

I can't imagine anyone ever needing more than one plant.

Hold my beer...

 

[pauldingbabe]

Wine gives me a splitting headache... I can't drink it.

You might be able to outside of the USA. No nitrates added.

 

[naturallysweet]

My grandfather always said that if everyone was rushing into something, then it's time to get out. If everyone's leaving something, then it's time to go back in it.

He was talking about ordinary planting. But it applies to marijuana and cannabis. Everyone rushed to the door all at once. Created an oversupply problem. Just let someone else buy all the material and get their systems running. You can pick it up for pennies on the dollar the next year. Then uou have less money invested and can earn a profit easier. Especially if you go into some form of specialty pot or cannabis product.

 

[Knight_Loring]

Out of curiosity - what specific brand/type of CBD oil are you using for your pain relief?

Any noticeable side-effects not specifically related to pain relief?

I've been hearing that certain specific brands/blends are better for some illnesses, while other brands/blends are good for other illnesses.


intothegoodnight

I tried the Hemp Tincture 1000MG CBD Full Spectrum from Extract Labs. I bought the 30ml bottle. I took 3/4 of a dose, now I only take 1/5 of a dose. Haven't had any for 9 days... no pain. They offer free shipping and 25% off first order. I paid $37.50 delivered.
The site is Extractlabs.com. Had no problems, soon going to make my 2nd order.

 

[intothatgoodnight]

I tried the Hemp Tincture 1000MG CBD Full Spectrum from Extract Labs. I bought the 30ml bottle. I took 3/4 of a dose, now I only take 1/5 of a dose. Haven't had any for 9 days... no pain. They offer free shipping and 25% off first order. I paid $37.50 delivered.
The site is Extractlabs.com. Had no problems, soon going to make my 2nd order.

Thank you for your response with specifics - I know several elderly folks who would like to give something like this a try, but don't know what to buy/look for - arthritis, bad backs, bad knees and hips where Medicare is a bit reluctant to authorize replacements, at their ~80+ age group, but who are otherwise healthy and functional, for their age group.

Next step is to investigate any known interactions with several of the pharmaceuticals that they are prescribed daily. Appreciate the comment that you are taking a dose that is below the recommended amount - and, it is working for you - gives a pointer to start slow and low, and gradually discover the dose that brings the expected pain relief.


intothegoodnight

 

[Knight_Loring]

Thank you for your response with specifics - I know several elderly folks who would like to give something like this a try, but don't know what to buy/look for - arthritis, bad backs, bad knees and hips where Medicare is a bit reluctant to authorize replacements, at their ~80+ age group, but who are otherwise healthy and functional, for their age group.

Next step is to investigate any known interactions with several of the pharmaceuticals that they are prescribed daily. Appreciate the comment that you are taking a dose that is below the recommended amount - and, it is working for you - gives a pointer to start slow and low, and gradually discover the dose that brings the expected pain relief.


intothegoodnight

intothegoodnight,

Happy to help! I am not a doctor but had done a fair bit of reading and research as I am very concerned with everything that enters my body.
I can't imagine this CBD oil interacting with drugs. But I really don't know as I only take one prescription.

The CBD oil I take is better than I could have ever imagined. There are so many different oils out there and it can be confusing.
I've read where most people take it for a week before seeing results.

Three days for me to experience amazing results, but I am active and pretty healthy - in my late 50's.
The bottle comes with a dropper with measures printed on it. Every dose I took was dropped under my tongue for 1 - 3 minutes, then I swallowed.

Hope this helps.

 

[Profit of Doom]

I know a woman and her primary caregiver who have grown in the past, but the time put into it, and those pucking spider mites, when you can drive 15 minutes and have seen 4 shops with 40-50 strains ready to go, it’s just not worth it anymore.

 

[Satanta]

Regulated vs Unregulated.

Let's take FL.

I really think toking it up would help her on several levels.

Problem is she gets drug tested every few months-bi monthly on average with her painvsoca.

THEY sell CBD oil-except they want nearly $100 a bottle [[might be more but I have not checked since the first time.

Now, you can find people selling CBD a bit cheaper but it comes at the risk they are selling Hemp oil mislabelled-not the same thing and those aren't cheap either, at least at our income level and we cannot risk tossing $60 at a bottle hoping to find the right item.

 

[twobarkingdogs]

I know a woman and her primary caregiver who have grown in the past, but the time put into it, and those pucking spider mites, when you can drive 15 minutes and have seen 4 shops with 40-50 strains ready to go, it’s just not worth it anymore.

This is why the industry will be profitable in the future. As I said earlier with folks growing veggies that people eventually out grow the hobby of gardening. It just becomes easier to buy it in the stores. Now naturally this does not apply to everyone but buying in the stores will become the norm

The problems the states and the industry has at the moment is the black market. And this is due to the price in the stores which I'm guessing is caused by over taxation. The states got greedy with both tax on the product for the end user and the cost and issues involved with getting a commercial grow license. So the states almost have priced the legit product out of the market and the dealers and small time growers want to make a living on the product. And unless the dealer gets caught with a huge amount in inventory then their product looks like any other product. It an interesting problem for the government which for me the only solution I can see is for them to roll back the tax levels and regulation and treat pot like any other ag grown product.

Treat it like tomatos. Here in my AO people pay more for buying them at the farmers market -vs- the grocery store because they think they are grown better. But most people buy their tomatos at the grocery where it is taxed. The only time tomatos are cheaper at the farmers market is when some local gardener dumps their over supply at the fm just so they can make a few bucks. But that would only happen for a week or 2 due to the nature of gardening. And here the market pretty much prevents that due to the way they lease the stalls so the home gardener really has no outlet for their surplus.

Thus big ag will always win from a price standpoint in the long run

tbd

 

[Flashyzipp]

Supply and demand will win every time. I just returned from Canada on business. Everywhere you looked there were pot businesses but no customers in the shops. It was a joke with the investor group. The country has really strong anti-smoking laws and they are now doing the same thing with vaping. And if you need it for medical reasons you go to dispenceries not shops catering to the general public that are not price controlled. And for mellow people still prefer a glass of wine.

I thought Canadians were only allowed to buy pot online?

 

[Flashyzipp]

It will be legal in Illinois come January 1st. There won’t be enough product to support the demand. I am sure eventually they will catch up.

 

[Wise Owl]

Supply and demand will win every time. I just returned from Canada on business. Everywhere you looked there were pot businesses but no customers in the shops. It was a joke with the investor group. The country has really strong anti-smoking laws and they are now doing the same thing with vaping. And if you need it for medical reasons you go to dispenceries not shops catering to the general public that are not price controlled. And for mellow people still prefer a glass of wine.

I don't drink anymore. Haven't had even a glass of wine in about 10 years. I always get a hangover. No thanks. Doesn't interest me at all.

 

[WalknTrot]

Regulated vs Unregulated.

Let's take FL.

I really think toking it up would help her on several levels.

Problem is she gets drug tested every few months-bi monthly on average with her painvsoca.

THEY sell CBD oil-except they want nearly $100 a bottle [[might be more but I have not checked since the first time.

Now, you can find people selling CBD a bit cheaper but it comes at the risk they are selling Hemp oil mislabelled-not the same thing and those aren't cheap either, at least at our income level and we cannot risk tossing $60 at a bottle hoping to find the right item.

I know folks who legally make and sell the good stuff, lab tested and all, and you are correct, currently selling at $60+/bottle. Their cost...even growing their own specialized genetics and making the oil? $5/bottle.

The price WILL come down with volume and when it's legal everywhere. If you can legally grow and make your own, do it. It ain't rocket science for sure.