Trudeau Fails At Undercutting Pot Market - Will Likely Be Replaced

Jason Bell
Jason Bell

Renowned hedge fund manager Jeffrey Vinik has dismissed the pot stock craze, describing cannabis investment as overrated and likely to suffer from squeezed margins. Speaking on CNBC’s Squawk Box on January 10, Vinik also revealed that bitcoin currently accounts for “zero percent” of his investment portfolio.
Returning to the hedge fund scene after a five-year hiatus, the Tampa Bay Lightning owner, who also holds minority stakes in the Boston Red Sox and Liverpool Football Club, believes that an entry rush into cannabis investments will create a situation where market demand is overserved, and margins become too small to be profitable.
In his words:
I won’t say zero, but my guess is that they’re overhyped. There’s going to be too much competition, margins are going to come down, [and] nobody’s going to make money.

<likely to suffer from squeezed margins
likely to suffer from squeezed margins
<margins are going to come down
margins are going to come down
This means Trudeau failed. Let me explain, Trudeaus goal was to "Undercut the black market" making it not profitable for illegal operators to sell. In reality, he put in so many stupid regulations like being required to buy online, being required to pay a 5 dollar delivery fee, taxes, business regulation, security costs etc etc that it costs about 2x or more to make it legally, in an industrial environment, which is laughably stupid. That some guy with a greenhouse in his back yard can go buy chemicals and grow it 2x cheaper or more than the government.

Thats also for dirty ditch weed. In Ontario it costs 130$ minimum, for the absolute garbage on the government website. Thats for 15 grams, which is 1 gram more than a "half". It should be for 28 grams, a full ounce. You can call a guy up and get 2 ounces for 200$. Thats 48 grams for 200, instead of 15 for 130. It will also be better than the governments.
Alternately, you can go the quality route and spend 250$ on 15 grams, from the government.

Why does this matter?
<likely to suffer from squeezed margins
likely to suffer from squeezed margins
<margins are going to come down
margins are going to come down
They are already kvetching they cant compete, the prices are already too low, the prices will need to go up further on the governments end. Its not just a failure, they took easily the most profitable and low cost business industry and turned it into a complete failure that some burnout with some 2x4s and plastic sheeting can do multiple times better in their back yard.

ccn.com/nobodys-going-to-make-money-on-pot-stocks-hedge-funder-jeff-vinik/

Attached: trudcuck8.jpg (1.02 MB, 3500x2333)

Other urls found in this thread:

bc.ctvnews.ca/cannabis-culture-says-dozens-of-layoffs-coming-as-it-prepares-to-close-vancouver-stores-1.4246698
bizjournals.com/newyork/news/2018/12/07/philip-morris-parent-invests-2-4-billion-in-cronos.html
fool.com/investing/2018/07/22/big-tobacco-makes-its-first-investment-in-the-mari.aspx
fortune.com/2018/12/03/altria-marlboro-acquire-cannabis-producer-cronos/

Kayden Perry
Kayden Perry

Actually its even worse because that guy who sells 2 for 200 is getting them 4 for 320 or cheaper. Thats another thing, they banned buying in bulk, you cant have more than I think its an ounce or 2 on you at a time and they cant sell in bulk, which would bring costs down. So buying a pound off someone on the street is going to cost like 4x+ less than the government.

Ayden Gray
Ayden Gray

48
56

Cameron Rogers
Cameron Rogers

You can get decent kush for around 140 an oz from those mail order sites. With tracking IDs from Canada post and all

Carson Jackson
Carson Jackson

It was called like Buba OG and OG kush, 130 and 140, they looked like the leafy garbage you grow at home, not crystalized or anything, its grown in a greenhouse pretty much a step above outdoor. Then you pay 5$ delivery, then you pay like 15% tax. The absolute highest price Ive ever seen for the peak 100% top of the line bud, It was called something like M24 and sold by bikers, was 220$ an ounce. You pay 250 for 15 grams from the government and its probably not as good.

Connor Moore
Connor Moore

Actually that M24 shit was even still only 180 it was something that was a step above that. Long time ago. No one pays that much anymore either.

Jeremiah Rivera
Jeremiah Rivera

No sorry I meant the illegal websites that have been operating for years.
I don't understand how it works but apparently privacy laws for mail in Canada are really good, at least domestically.

Liam Anderson
Liam Anderson

I didnt know any illegal sites existed but I wouldnt suggest using them. Smoking pot is degenerate but its Canada and you kinda just grow up into it, at this point Id be jumping off a building half the days out of the week if I didnt have it to keep me calm and collected about what happens every day in this commie shithole.
Ive never had a problem finding it, since highschool theres always someone who knows someone and they both know you, so its almost always just a phone call and a short drive away.
margins become too small to be profitable.
Which makes that just too funny. Trudeau failed at competing with the black market in the pot industry, hes a total dunce.

Levi Miller
Levi Miller

The Ontario government is also enabling the black market with its pot shop license lottery system where only a handful of licenses will be given out for any given area, and some cities as large as Ottawa aren't considered their own "area" like Toronto is, leading to plausible scenarios where Ottawa might not even get a single licensed pot shop.

Not that I care, though, marijuana just gives me a headache and my sides will split with laughter if Ottawa is shut out (not that people interested in obtaining weed can't just cross the river to Hull/Gatineau, Quebec and buy pot at the govermnet SAQ liquor stores).

Jayden Thompson
Jayden Thompson

not that people interested in obtaining weed can't just cross the river to Hull/Gatineau, Quebec and buy pot at the govermnet SAQ liquor stores
Non-kosher approved pot is on every street corner in big cities like that, they just open a window and shout.

Leo Carter
Leo Carter

Oh btw if they arent doing it now, soon they will be applying a kosher tax to bless the pot like absolutely everything else, like dishsoap. So theres one more literal kosher tax on government pot.

Nathaniel Robinson
Nathaniel Robinson

It so bad in Québec that they joke about in in the Bye bye 2018. SQDC Boxing day……. where they have nothing to sell……

Caleb Reed
Caleb Reed

Im glad I spent 8 years in a private dual English French school so I could understand that enough to laugh.

Charles Brown
Charles Brown

Legalize drugs to pacify the populous and get a cut of drug profits
Proceed to fuck it up so hard that it is more profitable and convenient to sell/buy illegally

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Nathan Edwards
Nathan Edwards

I fucking knew this was going to happen.
t.BC user

Cameron Watson
Cameron Watson

Wait till the indians take it over like with cigarettes. Also goverment isn't selling seed yet, don't want you growing your own.

Wyatt Lewis
Wyatt Lewis

Government was never going to undercut the black market because it seeks to maximize tax revenue. It's basic math, the operating costs for the black market are significantly less than the added operations costs for "legal" shit. The only way a legal market could destroy the black market is on economy of scale, but I don't know what the operating costs are for the scaling ramps to find an optimal point, nor would government taxes allow such a market to drive their tax revenue down (it wouldn't be worth it to even allow it then).

Whatever the case may be, marijuana is for degenerate faggots.

Cameron Baker
Cameron Baker

So how do you be a competent narcostate? These circumstances apply across continent, Mexico I can't elaborate.

Asher Gomez
Asher Gomez

I imagine it’ll end up in the hands of a few corporate players who can afford to operate at a scale that allows for slim margins. They will successfully lobby for lower regulatory expenses and reduce prices to compete with the black market. I imagine it was intentionally set up this way, let the pot heads think they are going to be pioneers in a new “right on” gold rush and then fuck them. It’s drug dealing after all, of course the most powerful player were going to take everything.

Noah Richardson
Noah Richardson

The people who will really make money got in early from insider knowledge no doubt. I bet a lot of Canadians, and American average joes bought into it thinking it was a great idea and now theyre all going to be fucked. The government cant compete with 100$ an ounce which is what people can get it for, from a dealer who paid 80 or less for it.

Anthony Smith
Anthony Smith

Weed is degenerate you should feel bad if you abuse it

Parker Garcia
Parker Garcia

Canada is degenerate.

Angel Bennett
Angel Bennett

I fucking knew this was going to happen.
Yup. In other news, Mark Emery is shutting down his stores:
bc.ctvnews.ca/cannabis-culture-says-dozens-of-layoffs-coming-as-it-prepares-to-close-vancouver-stores-1.4246698
This has all been one giant "hostile take-over". The only surprise in this, if it is even surprising, is how remarkably fast the government managed to fuck everything up.

Anthony Smith
Anthony Smith

Two ways. First is a cottage industry based on plant feedstock. The peasants/public grow the poppies and harvest the latex. The latex is then sold to the middle men. Not a real big difference here form any other sort of agriculture. The low-quality product is made into black-tar heroin for local use. Black-tar may also be produced more locally from diverted feedstock, however the lack of regulation means the two sources converge in price rather easily. The higher quality feedstock is used to produce better grades of heroin which is then sold to the government. Alternatively, the processors are the government directly which increases net revenue for those in charge. The government then negotiates the sale of this product to various international cartels for distribution in other nations. This can also be done with marijuana, with the plant being produced, sold to middle men, processed, and then sold via cartel in other nations. The tobacco industry operates in a similar way actually.

Second option is complete state-ownership of the means of production. This is useful for materials requiring more complex chemistry such as amphetamines. The government or a private cartel heavily tied to said government produces everything in house and sells it on from there. The processes are too complex to have a cottage industry. Such operations will also sell their product domestically to a higher degree as the locals can't produce it themselves to the degree with which they can with drugs derived from crops.

In both cases the rest of the government operates like a normal government, just replace some of the taxes with drug money. Think of how nations that get their money from exporting oil work, but fill the tanker ships with heroin.

Owen Green
Owen Green

The money made on the market was probably pretty nice but it’s a fraction of what the product will bring in. Corporate players will find a way to make it work for them. Not long ago Americas entire gambling industry was owned by the black market, a few decades later it’s all corporate.

Andrew Clark
Andrew Clark

OP is such a fag that he needed another man, one he's never heard of (guy is an asshole) to post what he wanted to say. We should speculate on why the faggot is so lacking in confidence, but we don't need to as he's shown he's incapable of thinking an just fixates on one or two things he sees in the juden presse.

It's not until April 1st (really) that legalization really starts in Canada. Of course losers like OP that don't have automation and sizable operations won't be able to make money. As such, the loser will go broke and the slightly less pathetic will be acquired. A handful of companies will come to dominate the market just as they do in every other. Now go fuck yourself until you bleed.

Leo Mitchell
Leo Mitchell

you cant have more than I think its an ounce or 2 on you at a time and they cant sell in bulk, which would bring costs down

Stupid leaves. Okay, here's what you do, you make little booklets, like rationing ones, mark a client every time he buys an ounce, and the 8th or 9th is free and that way they get bulk pricing for good customers. You no-imagination dopes.

Ethan Young
Ethan Young

It's been three months. The illegal market including those (((dispensaries))) rely on (((medical))) growers illegally selling their crop. There is a crackdown on this and once the supply goes, there is nothing for them to sell.

Also they're hitting them hard on edibles under food laws so I don't think three months is enough time to get the (((illegal market))) gone. I for one like the government stores because I don't have to deal with hair in the baggies and other shit business practices the weed market had.

Lucas Wood
Lucas Wood

Oh, they just changed those. All weed not coming from a licenced seller is going to be seized.

Isaac Bennett
Isaac Bennett

They don't want Mom Boucher or his relatives running all the dispensaries. The delay is officially about supply but really about money laundering. They WANT the large players to dominate, because the fuckheads holding marches are all connected to the Hell's fucking Angels it turns out.

Gavin Cooper
Gavin Cooper

This means Trudeau failed. Let me explain, Trudeaus goal was to "Undercut the black market" making it not profitable for illegal operators to sell. In reality, he put in so many stupid regulations like being required to buy online, being required to pay a 5 dollar delivery fee, taxes, business regulation, security costs etc etc that it costs about 2x or more to make it legally, in an industrial environment, which is laughably stupid. That some guy with a greenhouse in his back yard can go buy chemicals and grow it 2x cheaper or more than the government.
Can you believe there are jewish Trump shills out there right now that are saying that the current admin is going to abolish income tax ? ahaha

Ryan Morales
Ryan Morales

Unless you're baking with it, it's nice to have a zillion samples of two grams here and three grams here. But I'm a richfag so I don't factor in the price, I spent $175 at a store in Moncton yesterday.

The people who will really make money got in early from insider knowledge no doubt.

I work in regulation and compliance, I don't go near the product at all. It's farming and I'm more like the farm secretary, not Temple Grandin. The big dollars will be in processing for edibles, which won't be legal until October.

Adam Thomas
Adam Thomas

It's a commodity. Cheating on your wife is degenerate but we have a robust online dating and divorce lawyer industry.

Andrew Thompson
Andrew Thompson

Yup. In other news, Mark Emery is shutting down his stores

He wasn't able to get a licence and actually has bail conditions preventing him from running stores, so I'm curious as to why they didn't shut him down (probably because he'd pull his cock out and start jerking it for more attention).

All those Vancouver people are radioactive to institutional investors due to either their prison records or connections to the tongs or the 81.

Brody Robinson
Brody Robinson

Glad I quit. 10 years was enough.

Look at that picture. That's a lot of stupid. It's also a lot of herpes but that's another story, sort of.

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Landon Robinson
Landon Robinson

Daily reminder: Weed is for niggers

Christian Baker
Christian Baker

the fuckheads holding marches are all connected to the Hell's fucking Angels it turns out

Like Mark Emory; they paid for his shop and all his long list of legal bills so they could get what they wanted.

Christian Williams
Christian Williams

the most powerful player were going to take everything
It was only a matter of time before Big Tobacco/Pharma muscled into the racket. They'll start using pesticides and GMO seeds, and the organic purism—the only redeeming aspect of dudeweedlmao—will be out the window. It'll be full of secret additives and now that I think about it, will kill degenerates faster and more efficiently. It went from black market (read: CIA-controlled) to "green market" (read: corporate-controlled)…aka the same people.
bizjournals.com/newyork/news/2018/12/07/philip-morris-parent-invests-2-4-billion-in-cronos.html
fool.com/investing/2018/07/22/big-tobacco-makes-its-first-investment-in-the-mari.aspx
fortune.com/2018/12/03/altria-marlboro-acquire-cannabis-producer-cronos/

knowing this much about muh dank nugz
OP doesn't even try to hide his degeneracy.

why is OP such a faggot
see above re: OP's extensive knowledge of weed culture

and spics

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Andrew Edwards
Andrew Edwards

pot culture is fucking degenerate, and getting blitzed 24/7 isnt productive, but as a user for a decade, would you say that a few hits after work and before bed are so degenerate that an user should be hanged with the rest of the filth?

asking for a friend

Brandon Wood
Brandon Wood

Who could have predicted that drug illegal dealers would continue selling drugs illegally?

Jose Smith
Jose Smith

How cheap is the stuff smuggled from MX and Asia?

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