Recently for Elevate, we were asked to provide a keynote about how a VC would objectively view this increasingly important part of the Canadian economy.
What does not come thru the Prezi is the commentary of caution. There was a good friend in the audience who was a director of research and simply in front of everyone we said at 150x sales we know how this story ends. And that’s what these stocks are trading and it’s a good explanation for the acquisitions mania, which in turn feeds the cycle. Until it does not.
For every hype cycle there is rationalization that drives the mania. Massive international expansion, CBD in literally everything aka salt in food, or the massive product cycle shift from alcohol to cannabis. All true all massive opportunities. Cycles are an inherent part of nature. Everything from the behaviour of an atom to the spirals of the galaxy to the moon around the earth to the tidal waves to the stock markets to day night to everything – all fundamentally cycles.
Be abundantly wary about the market selling on news. Smart institutions may have already started but the problem with a bubble is that the top is typically impossible to call. Enjoy. Because regardless Canada is coming out on top of this mega cycle. ??