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Home https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ Health https://server7.kproxy.com/servlet/redirect.srv/sruj/smyrwpoii/p2/ The result of the first surprise in Canada's latest National Cannabis Research Study – Motley Fool

The result of the first surprise in Canada's latest National Cannabis Research Study – Motley Fool



Last year was a leap year for the legal cannabis industry. Since it has long been considered a taboo, the adoption of the Cannabis Act in June in our neighbor to the north, as well as official legalization and sale of recreational marijuana in licensed dispensaries and online stores from 17 October 2018 in Canada, confirmed the industry as a legitimate business model.

Experts are no longer asking if the cannabis industry can survive. Today, the question is whether the global weed industry may grow over the next decade, with some of Wall Street's demand for annual sales of $ 75 billion.

However, your vision of what the existing cannabis industry looks like in Canada may not be right.

  Dried cannabis buds located on dozens of miniature Canadian flags and an index card with the word

Image Source: Getty Images. Know the Cannabis Cannabis Industry, Think Again

Every three months, Canada's Statistical Office publishes the results of its National Cannabis Survey from the previous quarter. This study looks at current and expected levels of utilization as well as the most likely consumption patterns. In early February, Canada's Statistical Office published the results of its fourth quarter survey of 2018.

If you're like any other investor, expect sales of marijuana for recreation to dominate, especially with the ban on adult use. end on October 17th. Interestingly, however, the data does not show this. Of those aged 15 and over who have used cannabis in the last three months, 7% report weed use for recreational purposes only, 4% consume cannabis for medical purposes only, and 4% use it for medical and non-medical purposes for a combined 15% (or 4.6 million Canadians on an extrapolated basis). Surprisingly, more than half of consumers still consume marijuana, in some capacity, for medical purposes, and not just for entertainment purposes.

Not only do marijuana remain a large part of Canadian industry in the fourth quarter, but medical weed patients are much more likely to use cannabis and open their portfolios to entertainers. Only one out of five non-medical users reports that they use cannabis daily or almost daily, compared to 70% of medical users with documentation (ie issued medical card) and 46% of medical users without documentation. In addition, 95% of medical users with documentation reported that they spent money on marijuana in the last three months, compared with only 57% of non-medical users.

The National Cannabis Study also found a significant difference in the way that medical and non-medical users consume a product. More than four out of five (83%) leisure users prefer to smoke cannabis, while fewer than two out of five (37%) medical users feel the same. Rather, it is more likely that medical patients will prefer lotions, sprays or other alternatives such as oils compared to smoking.

  A prescription bottle containing dried cannabis buds, which is on the prescription of a doctor.

Image Source: Getty Images

Do not Forget Cannabis Medical Market

If you have not figured out the Canadian Cannabis Cannabis Cannabis Cancer Survey this is because the market for medical marijuana just will not disappear because weeds for adults are already legal. In fact, this suggests that the stocks of vessels that choose to focus on patients from a medical point of view could be well rewarded. 19659002] The survey shows that the majority of recreational lovers tend to buy a dried cannabis flower; and that their flower purchases are incompatible. As we have seen from people like Colorado, Washington, Oregon and even California to some extent, in the United States, the dried flower tends to be oversupplied and sold over time. This reduces the cost of grams for dry cannabis and can weigh on margins.

By comparison, medical users typically buy cannabis more consistently to control the disease (s) concerned and prefer non-smoking methods of consumption. Alternative products such as oils bear much higher prices than the dried cannabis flower. In this case, the higher price point actually means a product with a higher margin. Considering all this, patients with medical marijuana offer more money per dollar for marijuana than for leisure.

  A clear jar full of dried cannabis buds lying on the top of a stack of twenty dollar bills. These two giant stocks are on a different path </strong></h2>
<p>  However, the two largest stocks in the market capitalization market take many different pathways to how they approach the cannabis market, which is growing. On the one hand, <strong> Aurora Cannabis </span> is expected to be the largest manufacturer with up to 700,000 kilograms of peak annual production to focus on patients with medical marijuana. Even when the company reported operating results in the second quarter that it sold about 20 percent of all weeds in Canada in the fourth quarter, Aurora ceased generating more revenue from the medical side of the equation than entertainment. By concentrating its efforts on patients with medical pots and emphasizing its alternative products, combined with the economies of scale that should come with the expansion of production, Aurora Cannabis takes care of the above-average operating margins among Canadian manufacturers. On the other hand, <strong> Canopy Growth </strong> <span class= (NYSE: CGC) is the largest publicly traded marijuana inventory in the world, and the second largest forecast maker with peak annual output. Canopy Growth's latest quarterly operating results include a $ 71.6 million (71.6 million US dollars) gross sales of pots for recreation, and only $ 18.6 million in gross sales for medical use. On an annual basis, gross income from medical marijuana fell by 1.7 million US dollars in the third fiscal quarter. To be clear, Canopy's focus on the marijuana market for recreation does not mean that it will not be successful. But this suggests, at least on the basis of National Cannabis Research data, that the margins of the company are not as strong as those of Aurora.

In summary, do not rely on the medical market to be pushed in the opposite direction, as


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