Mate, the sector is in mid-cycle development (10 years); there is still a lot of uncertainty in the market, as you and I have both seen in the charts. Look at the crippling low-fwd quarterly funds position the majority of these companies carry. CAU is toppling today, as I mentioned it would, due to a distorted jump in share price over a small time-period. We are also in uncertain economic times coupled with a poor legislative environment for all these Cannabis hopefuls to survive in. I think there are 60-70 of them presently (public and private), all vying for the same pie, and the country is still importing more from US and Canada than they export, from what I have read.
There is more culling to be done first, unfortunately. as the sector in Australia is probably over saturated by at least 35% in my read based on poor results, high costs and lessening of support and declining trust in giving to C.R's; so far over $1.2BN given by shareholders in 5 years.
Now looking at some positives, there are a few companies, like CAU, and perhaps ECS, and a couple of others that may do well if they can control their COGS ratios and lower the cost of out-the-door per-item sales and lower their management and admin costs. Way too high for many of these Pennies. That is what is killing off many of these companies in Australia, IMHO. The enormous corporate wage bill and salaries and expenditure to run these expensive and controlled hothouses.
Anyway, 2023 will be an interesting year, amb. I wish all shareholders success.
I have included my last chart, which accompanies and supports yours regarding the Fwd funds I mentioned. Some shockers here. AGH is no longer suspended, and some of these guys have still not lodged their last Quarterlies.
(20min delay)