Quoted from Baiter:
Choosing a company largely comes down to trusting their execution and you can do that by looking at their track record.
For example CGC is trading at a 26x multiple while CURLF is trading at a 13x multiple, is closer to profitability, and announced Europe expansion this week. Do you keep throwing money at CGC and hope they can be profitable some day, or invest in a company that is not only executing better, but is cheaper? That's the state we are in today when comparing the major Canadian vs US companies.
CGC is already baking in the merger. I agree, current valuation is high but they are in a very unique position with almost instant exposure to a large piece of the US pie - again, already baked in. They’re also positioning themselves to have a large EU footprint that shouldn’t be ignored.
I like CURLF a lot. I own a decent chunk and plan on adding to it.
The key in this sector is to buy a little of all the big players and wait for the consolidation to unfold. Valuations will be wonky in the sector as a whole as no one can accurately predict growth rates of an untapped market in a brand new industry. What I do know is what happened in Colorado - I lived there for 18 years and was there when rec went legal. I think the analysts are completely underestimating CAGRs across the board.