RE:RE:RE:RE:RE:Sunniva Bashing article@Bluechip2: On the lighter side, let's stop calling this a spinout. It is a proposed spinoff. A spinout is when my car skids out of control and crashes into just the median, hopefully not into some other vehicle. Though what we are seeing now is a spinout.
In any case, here are my views and as always, I am a straight shooter:
1. I have been saying all along that the co should just concentrate in Calif. Why? I will repeat again in this post:
a) Calif facility is funded by BPG so no cost to the co, in tems of raising capital
b) Calif market bigger than Canada
c) Calif is fully legalized even for edibles. NOW.
d) Little to no competition in Caif
e) Pretty much a first mover advantage in Calif
f) Extraction already brining in $ in Calif
g) Calif will start producing MJ this year
h) VC business strong in Calif
2. Cannot say those things about Canada. In fact, except for NHS, co has nothing for it as an advantage, though some here disagree.
3. Canada facility financing has been like an albatross or should I say a sword over the co neck.
4. Sorry to say I told you so, but the Canada facility is the problem. You can disagree but the proof is in the sp
5. The spinoff announcement timing absolutely sucks. They should have worked out the details first and then spun it off.
6. SNN and SNNVF are now reflecting the California facility, Extraction and VC business market cap. And that, though unfortunate, is logical. hence the sp tanking. Don't blame the market, Blame the mgmt for focking this up. They have been playing as they go. Harsh words, but true. The proof is the sp declne.
7. We bought into this co with the thinking that we are paying for ops in Calif and Canada. Now the co says in a garbled fashion that that is not so. According to Ted O'Pumper, this is now a "Clean Play". So I assume it was a "Dirty Play" since the beginning?
8. Holler might have been successful with a vaccine mfg co but I don't see the parallel in this industry. The feathers in his cap are the agreement with Canopy, which is not worth anything to the market now, extraction business and contracts in Calif, smart strategy to have BPG buildout the Calif facility. But the timing of trading halt, the spinout, er spinoff news timing has left a lot to be desired. He has great energy, obviously, but I believe he should straighten this ship. Quick. He and his team should show some reassurance by buying shares on the open market, which can help. May not mean much if they do, but it will help a bit. Also, they need to explain their financing of Canada facility, the spinoff details in a cc asap. Uncertainity and obscurity is rampant right now.
PS: Notice how the pumps came in that valued this co at $40+ a share to $30 something and now to $13 from Canaccord? What the..... Someone did a fantastic job in January pumping this. I know who did. Many are in denial about it though. Not that it matters now as we are all stuck in this dead pile. For a while.
I do believe the ship can be righted if actions are taken by mgmt quickly. The crux of the matter is this:
Calif facility has to start producing as planned and on time. Delays will bring this to the $1 levels, unless the extraction facility revenues can negate that. I am hoping Calif will bail us out. At this point, my dreams of riches has spunout into the median. I am just hoping for a breakeven next year. If lucky, more.
Bluechip2 wrote: sunrize wrote: @Bluechip2: The "panicky article" wasn't the reason for the slide from the teens to 7s. The SA "panicky article" you are referring to is all but two days old. Have you seen the negative money flow on this stock? Negative since day 1. I have never seen that in 20 years of investing. Repeat - negative since day 1 for CMF. Explain that please.
Bluechip2 wrote:
you've been fine JMark80, some of us have been commenting on SA, may have to do with the junior banks competing rather than the company itself but hogwash and a panicky article for sure. Sunniva's contrary strategy and outward disdain for bought deal financing is probably not a winner for the people who are making a killing providing these poor investor deals.
Hey sunrize, of course I realize this article is just fluff, just commenting on the publisher's intentions based on lack of credible analysis. I don't obviously have the answers for why sentiment has not been positive and the SP keeps dropping, I am in the red as well. In terms of the money flow, there is simply not very much new money coming in, volumes are extremely low and have been consistantly since the initial pump and short sell off in February. There will always be some sellers for various reasons, personal or otherwise. The majority of public investors in SNN today are retail and as this SP compression drags on the stress grows for many. The CSE in particular, is dominated by investors in canadian cannabis companies and today's market caps are a function of that market only. Most of these investors are still focused on Canadian legalization and international growth in international markets. The US market is complicated and risky, and leaves an impression that potential big returns in any company in that market are years away. So,effectively the business deliverables that Sunniva has been quite successfully bulding towards will also have to show on the bottom line before this company gets noticed in a big way. All I can say, the business is in better shape today then it was during the IPO. Most of the execution risk has been removed and the revenue growth period is nearly amongst us. In my 35 years of investing, any company that delivers and generates strong revenue and profitability with competitive advantages will be a long term winner. I have positioned more cash to add once the details of spinout are announced and just prior to investor meeting when they are locked in.