We often hear from acquirers and company owners alike in cannabis sectors that the times we are living in now are like “the first years after Prohibition in 1933.”
The implication is that marijuana and hemp versions of Anheuser-Busch, Coors and Seagram are being formed now, and it won’t be long before products will start showing up on store shelves at the same rate that we see alcohol today.
Visions dance in the heads of key players of entire aisles in grocery stores and pharmacies dominated by marijuana and hemp products. Behind that, of course, there are visions of dynastic wealth.
The secondary implication here is that the valuations of today’s nascent marijuana and hemp companies should reflect the nearly unlimited potential of prospective growth.
The thinking goes that the value should not be based on where they are now, but where they will be in the future – even the very distant future.
And therein lies a concern.
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