It's not that ECS are frugal (they've invested millions in their expansion), it's that they've chosen to grow using the lowest cost method available that still maintains strict quality standards. They use protected cropping enclosures which come with a lot of the benefits of growing indoors but none of the associated costs, they also grow outdoors.
Companies that grow indoors (LGP, CAN etc) will never be able to compete on price and must find a way to diversify their product/revenue somehow. The argument used to be better quality from indoors but there is more research coming out saying outdoors actually has the better product. The reality is that they are both good products just different.
Anyway, we are getting to the pointy end of the cycle now and companies that were too late to the party or over-invested are starting to either pack up or go into receivership. There is going to be some turbulence but the companies left standing are going to clean-up in a big way.
LGP Price at posting:
22.0¢ Sentiment: None Disclosure: Not Held
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