Choom Holdings Inc CHOOF

Healthcare Cannabis

Choom Holdings Inc. is a Canada-based retail cannabis company, which is established as store networks in Canada. The Company’s Choom brand is inspired by Hawaii's Choom Gang, a group of buddies in Honolulu, who loved to smoke weed or, as the locals call it, Choom. The Choom Gang pursued a ‘live in the moment’ lifestyle and their energy has helped shape the Choom culture, which is rooted in the shared belief of cultivating time with friends. The Company is focused on delivering an elevated customer experience through its curated retail environments, offering a diversity of brands for Canadians across a national retail network. The Company operates through two segments: Retail Cannabis and Corporate Operations. The Company’s business strategy is to build retail cannabis chains, with locations across Canada in the provinces that allow for private retailers.

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Choom Holdings Inc

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Post by CANNABISCANADAon Jul 25, 2021 3:10pm

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Something for you to read on a Sunday

Upcoming American Cannabis Earnings Reports Should Reinforce Strong Industry Fundamentals

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Alan Brochstein, CFA via gmail.mcsv.net

8:02 AM (7 hours ago)

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Friends,

We are on the cusp of earnings season for cannabis companies, with some of the largest ones beginning to report financials on August 4th. It will be a very busy month! For an updated list of scheduled calls, you can refer to the New Cannabis Ventures Cannabis Investor Earnings Conference Call Calendar.

Before we get to the financial reports for the June quarter, the market will likely face some negative news when Tilray reports its Q4 ending in May next week. This is a complicated financial report, as the company completed the merger and renamed itself from Aphria to Tilray at the end of April. Only one month of legacy Tilray operations will be included. Further, the company is converting from Canadian dollars to U.S. dollars. Finally, the numbers aren't likely to look too good based on data from Hifyre, which indicates a loss of share during the quarter at retail level. We have seen some services reporting a consensus that appears way too high at $193 million for the revenue during the quarter.

We are optimistic that the reports out of the U.S. will be strong and could attract investor attention. Here is how some of the largest MSOs are expected to report:

While we are limiting the number of companies included in this table, the smaller MSOs are expected to show robust growth as well. Additionally, ancillary companies are forecast to post strong results. The largest, Scotts Miracle-Gro, boosted guidance for its Hawthorne Gardening division in early June, suggesting that it expects full year growth in revenue to be 40-45%, up from previous guidance for 30-40% growth. Large ancillary companies Hydrofarm and GrowGeneration are expected to see annual revenue growth of 45% and 157%, respectively.

As we discussed last week, MSOs are doing just fine despite operating with the challenges of cannabis being federally illegal. Over the next month, we expect them to provide tangible evidence that this remains the case. The MSO stocks remain attractively valued. Hopefully the earnings reports serve as a catalyst for investors to take advantage of what we see as a good opportunity.