Clifford's comments were made about 10 days ago. They were his views, not Morningstar's, so GL77 reply was beside the point. Most fund managers, particularly value investors like Platinum, would probably have a similar outlook and would be waiting for consolidation and (I expect) more focused business plans.
Most of the cannabis stocks are still trying to cover too much territory. As I've argued before, cannabis isn't an industry - it's an ingredient in several existing industries, including recreational use, which operate differently, and have unique input requirements. RGI is sensibly trying to avoid this by concentrating on horticulture, not being just a cannabis grower (though that may turn out to be the most profitable crop for their machines). The downside to this is that RGI not commanding the share price premium that pure cannabis stocks are currently getting.
Hi, Red. On FDM, you did well there, but I think that 16 cents should be near the bottom, now that the WF facility is in place and half the near-term production is hedged. The only known unknown is if there is a major blunder/accident/cost blowout with drilling or completion or if any of the new wells don't meet expectations. The unknown unknowns would include more games involving Morgans, and any possible action from ASIC on trading activity at the time of the last c.r.
RGI Price at posting:
42.0¢ Sentiment: None Disclosure: Held
