Over the past few years speculation in the cannabis sector has been the name of the game. Many companies are pre revenue and are not profitable yet. For those not involved or educated on the potential of this industry, a quick look at some balance sheets may cause panic. However, this is a unique industry and in the coming years once the speculation hype wears off, distribution, profit margins and brands will determine who makes it big in the long haul.
This is why Harvest One’s (HVT) acquisition of Dream Water is an indicator that it is building for the long term; and is more focused on sustainable growth rather than short term upswings in its stock price. Dream Water is already an established brand moving over 3 million units per year and is in over 30,000 retail locations including Shoppers Drug Mart. Developing a brand from scratch is a major undertaking and at the end of the day is a gamble as in business the amount of variables are endless. With Dream Waters proven track record and brand loyalty it is surely to be around for a very long time.
One of the top 3 indicators Warren Buffet looks for when in investing in a company is if he believes it will still be operating in 10 years time, ie. does this business have the proper foundation built for such inevitable variables and will the business make sense in a decade?
We all know that water isn’t going anywhere, and we also know that CBD isn’t going anywhere (as Harvest One has indicated it plans to create CBD water products for sleep). The product currently contains 5-HTP, melatonin and GABA and is taken at night before sleep. The concept of adding CBD to this combination that is already proven to work makes perfect sense from a consumer standpoint.
It’s also a pretty safe bet that the worlds sleep problems aren’t going anywhere either. One extra hour of sleep gained has massive health benefits. For example after daylight savings time heart attacks increase by 25%. Several studies with SAT scores have proven that an extra hour of sleep greatly improves overall test scores. There was also a study done in California that proved car accidents among teens drastically decreased after the school pushed its start time an hour later.