Reason #1: Production Is Climbing With Demand Set To Flatten Out
In Canada, we’re watching big moves being made by all of the big growers, including CGC. This is great, except for the fact that supply and demand is still a factor here.
The truth of the matter is that many expect that demand will see slowing growth ahead, Analyst Carey is one of these experts! As demand for cannabis flattens out in Canada, and growers consistently work to produce more product at a lower cost, supply could flood the market, tipping the scales.
In the emergin cannabis market, the scales tipping to such a point that potential profitability goes out the window is a very real possibility. Should this take place in Canada, Canopy Growth and its fellow large-scale Canadian cannabis growers will feel serious pain.
Click below to read the second reason investors should be concerned about CGC stock.