(exciting electronic music) - I just want to clarify a few things about marijuana companies. People are misunderstanding that I'm saying that as if they think I'm against marijuana. I use medical marijuana every night. I'm a customer of Aphria and I have been for many years and I use the marijuana to get off of the hard core drugs that the specialist doctors are putting me on that are brutal. And so, it helps me a lot, and it's a lot cheaper and a lot more effective. I'm not against marijuana and I think it's a great thing.
Especially for kids who're having seizures, that kind of stuff is very important. There's all sorts of benefits that we have not yet recognized, and we're just learning about them all now. I'm not against marijuana and I'm not against the whole concept of marijuana companies, all of that. I think it's great, it's the next new thing that's gonna be growing in popularity. What I'm against is these companies that happen to be popular and increasing price simply because they're in the industry.
There's been companies that were mining companies who went almost bankrupt and they just changed their name. They put marijuana or cannabis in the title. There's a lot of companies doing marijuana consulting, whatever the hell that means. And then the price goes up so much. And I'm saying that it's a crowded trend, there's way too many people who are getting in on this. What I'm more warning against, is that it's a crowded, popular trade. Everybody is getting onboard.
So, that means it's a lot less opportunity for you to find good values and profits. And many of these companies, which I started originally warning about, are over the counter stocks, trading on the dark markets. And they are financial train wrecks, they're terrible. They have tens of millions of dollars in debt. They have no revenues yet. And then people will argue with me and say yeah, but that's because it's not illegal yet, how can they have revenues? Once it gets legal, then the revenues will come next.
And that's the way that they think that the companies will grow over time. That kind of makes subjective sense, but is kind of logical but not really. What happens is when marijuana and cannabis becomes acceptable, then you've got the big players who swoop in and take over the market. This is what's happened again and again and again and again going back to when there's first bigger companies who could bully around smaller companies. So a lot of these companies who, all they have is a concept.
They have the concept that they're gonna be selling marijuana at different types of hip ropes and different kinds of pharmaceuticals and it's gonna make all this money once they can sell it more widely. And I do not agree with that and I'm always saying no matter what, how good the concept is, whether they have a cure for cancer, no matter how amazing the concept of the company is, it's never good when the company has way too much debt and not enough revenues. And they're a financial train wreck
with nothing except the idea of cannabis. And if that's what they're banking their future on, no, that's not a good investment. People come along now and they act like they just discovered that marijuana's gonna be the next big thing; this has been known. And so, how do you think that you're gonna come along now and jump onboard and then make all this money. The money to be made has already come and gone. There was money to be made, but not so much anymore. I don't see any of these companies
doubling or tripling in price anytime soon, even when cannabis does become legalized. So, a lot of investors who think that it's a good way to invest, it's a good idea coming up so then you throw money at it, they're not looking at the books of the companies, they're not looking at how much trouble these companies are in. Some of them have so much debt already and no revenues, and so much expenses, that there's no way that they're going to physically ever recover and get back to where they need to be.
The share price; therefore, will not go up any more in my opinion, and I'm talking about not all companies, a lot of companies that will be producing marijuana products and cannabis products will do okay as the industry grows, it's a new industry. But, it's going to go the same way with automobile manufacturers. It's gonna go the same way it's gonna go with cryptocurrencies; it's gonna consolidate. Most players in the industry, 'cause it's easy to get into the industry,
most players in the industry are going to be wiped out. It's easy to get in the industry to have your company say yeah, we're in the industry of cannabis. And then all of a sudden, people will buy the stock and push the price up. That's why there's no money to be made for investors, in my opinion, because it's a crowded trade. It's played, it's a tired trade, and that's what I'm warning against. It's not getting involved in the concept, which a great concept, when the company,
that you're getting involved in the concept with, is a terribly financially broken investment. You should invest well in undervalued companies, and there aren't a lot of them right now in the marijuana space.
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