Preston
MBow30 alt account
Yeah the re-rating process has already begun but it will likely be accelerated once the announcement is made. Of course, on the other end of it, the tax savings are somewhat mitigated from some deteriorating fundamentals over the past couple years.the other thing there is pretty good variance about how the tax status will affect earnings....at some point these pot companies are going to have dirt cheap p/e ratios
but they're still cheap cheap products and way below 2021 levels so the deteriorating fundamentals bit is already factored into the SP.
Loads of companies that will be cash flow positive that are trading at market caps 50% below their annual revenues right now, it's pretty wild. They are headed to bankruptcy in the absence of 280e removal.