Detractors of the Canadian marijuana industry say the stocks in the industry are WAY overvalued, wouldn’t touch them and recommend others not to as well. Yes, from a value perspective it would go against conventional rules to do so. What some of these old guys in suits who have never smoked a joint in their life before don’t realize is that there is a huge marijuana market going on right now. These guys have the same rationale as Warren Buffett with technology stocks. Recently, he admitted that he “blew it.” If a guy like Warren Buffett can blow it then these guys on BNN can as well. They don’t even have the talent that Buffett possesses in one fingernail.
If you think Canopy Growth shares are overvalued then you shouldn’t even think about Tesla. Sure, Elon Musk is a wizard but his ambitions are much more speculative than a thriving Canadian marijuana market. Electric cars have not solidified its place yet in society and there are existing giant car makers all over the world who are competing in this industry. Tesla isn’t just a car maker but its other industries also face the same challenges and more. The only real hurdle that I see for Canopy Growth is whether or not legalization happens as planned. It is believed that there will be a shortage of marijuana supply for the recreational and medical markets or if not then just enough. If Canopy Growth can sell to its maximum capacity which will be close to 100 million grams then the share price will leave the single digits forever.
It’s easy to be scared off by these old stiffs bashing Canopy Growth but in my opinion there’s much more promise for delivery of success than there is with Tesla.