Thursday, December 8, 2016

Commodities: "Marijuana Bubble Worries Grow in Canada After Two-Year Rally"

From Bloomberg:

  • Country seen as pure-play market as capital floods in
  • On track to become first in G7 to make recreational use legal
The surge of capital into Canada’s nascent marijuana industry has sent stock prices soaring -- and brought warnings it’s a bubble that could soon burst.

The value of 26 marijuana stocks listed in Canada has swelled to almost C$4 billion ($3 billion) from close to nothing in the past two years, as investors rushed to bet on the country’s move toward legalizing recreational use. Canopy Growth Corp. became the first marijuana unicorn, reaching a valuation of C$1.24 billion on Wednesday. Other producers, including OrganiGram Holdings Inc. and Aurora Cannabis Inc., saw their share prices surge more than 250 percent this year.

While investor optimism is being fueled by analysts’ estimates that there could be about 3.8 million recreational marijuana users in Canada by 2021 and billions in sales, there’s mounting concern companies are overvalued. How Canada will regulate, tax or distribute the products, remains unknown and some of the publicly traded companies have yet to make a sale.

“Oh, they’re going to pop,” Nick Brusatore, the largest shareholder of Affinor Growers Inc., said by phone. Once a mining company, the Vancouver-based firm now develops greenhouse technology for crops, including cannabis. “It’s going to pop hard.”

‘Serious Bubble’...

Previously in pot:
Marijuana Finance
America’s Economy Will Be Saved With Marijuana And Craft Beer
"The Weed Funding Bubble"
Junior Gold Miners Consider Cashing Out, Pursuing Medicinal Marijuana Opportunities
"Peter Thiel's Founders Fund becomes first institutional investor in marijuana" 
Frontrun the Dopers: "These 4 States Will Reform Their Marijuana Laws in 2013"
"Is Monsanto Ready to Enter The Medical Marijuana War?" (MON) 
In the Wake of Colorado and Washington State Legalization, Time to Think About Pot-enomics
Here Comes Crop Insurance For Your Dope
The Audacity of Dope: "Oakland ready to approve four marijuana factories"
6% of all power produced by BC Hydro is used to grow marijuana.
If Farm Investing Conference Agenda Is Any Indication, Marijuana Prices Are Going to Zero
Bread and Circuses: Chicago City Council Votes to Decriminalize Marijuana, 43-2 
"The Coming Age of Corporate Cannabis"
"Hedge Fund Managers Smoking Out Opportunities In Emerging Market Of Legalized Weed "
As soon as one 'Uber for weed' startup gets cut down, another grows in its place 
"The Geography of Pot Prices"
The Marijuana/Solar/Wine Connection 
Attention Homeless Dopers: New Berkeley Ordinance Requires Dispensaries to Hand Out Freebies
Considering the co-morbidity of schizophrenia and pot use, and schizophrenia and homelessness, this is probably a good idea.
For Berkeley

And many more. Use the search blog box if interested.