Where Will OrganiGram Holdings Be in 10 Years?
The pot wars have officially broken out in earnest. With less revenue to go around than anticipated due to structural and regulatory deficiencies in Canada, the country's top licensed producers have all had to scale back operations, cut costs, and pay close attention to their often dwindling cash positions. The net result is that this harsh economic climate has started to truly separate the wheat from the chaff. Companies like Aurora Cannabis (NYSE: ACB) and HEXO Corp. (NYSE: HEXO) have crumbled in lockstep with the legal cannabis industry as a whole, whereas Canopy Growth Corp. (NYSE: CGC) and OrganiGram Holdings Inc. (NASDAQ: OGI) have both proven themselves capable of swimming against the current, so to speak.
OrganiGram Holdings is a particularly interesting case for a number of reasons. Instead of stressing its balance sheet out to the max with costly acquisitions like Aurora, Canopy, and HEXO, OrganiGram has essentially stayed home in order to focus on growing great pot in a cost-efficient manner. This seemingly zen-like approach to business development has quite possibly set the company up for long-term success. The same certainly can't be said for more aggressive players like Aurora or HEXO. And even Canopy, the industry's 800-pound gorilla, has a lot of work to do to realign its operations with actual consumer demand.
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Source Fool.com
