RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:1.87 Im a seller then waiting for the pull backThemanfromcomo wrote: Most LPs cant produce weed as cheap as Valens gets it period. Valens will have 25- 26 million in revs and record margins. IMO
How many people remember, if you go back 2 years, Valens was looking to partner with another company to work on a joint project to build a grow operation, green-house based, just north of Kelowna in Armstrong, BC?
That was a serious joint venture, but Valens management eventually decided NOT to pursue that direction, and how smart does that decision look now, now that LP's are practically giving bud away? Maybe most people have forgotten about that, but if you think about it, that was a really smart move by the exec's at valens. They saw the over-supply coming and didnt fall into the trap of becoming just another LP. That would have cost the company millions, and instead of wasting their capital on a grow-op, they used it to purchase equipment and acquire additional production space.
It wasnt much later that the exec's realized being a pure extraction company wasnt going to keep them at the fore-front of this industry, and they began to plan for cannabis 3.0 - vapes, beverages, topicals... Who remembers LABS? People used to come to this board and compare Valens and LABS, and claim that LABS was the much better investment. How'd that work out? LABS used to trade well over $4, now they're down around half a buck. I dont hear too many LABS investors bragging about their choices nowadays.
Now we've expanded to Australia, and imo, that's the gateway to Asia, including japan. i think Valens is keeping a closer eye on the international scene than we realize. Sure, they recently exported something to Denmark, but I'm actually thinking of South America. Some here will remember that a couple of Valens exec's made a business trip to Colombia a couple of years ago. One of the companies they visited just became the first company to export medical cannabis out of Colombia. Establishing face-to-face personal relationships is often the foundation of successful business partnerships, I dont think we've heard the last of South America....
To judge the performance of this company properly, people need to look at the mistakes that management avoided, that most other companies walked straight into, such as avoiding the LP implosion - just as important as the correct decisions that were made. You know what they say: the best indicator of the future is the past. Stay tuned.