RE:RE:RE:RE:SORRY HERE IS THE DIFFERENCE BETWEEN FAF AND ISH LOL you're making a pile of assumptions 'bud'. I'm literally sitting at break even right now. But sure, keep talking sideways and ignoring the fact I just pointed your silly comparison to be moronic. Not sure how you're DD ammounts to how this company will never be a player in the sector but you can hedge your bets wherever you feel like. You might have "smh' yourself a little too hard., but its cute you think you're opinion is worth anything more than the time you took to type it.
Meanwhile in the retail game being first to market and brand awareness is king. Sure, ill readily admit ISH will never have the EPS the others will have untill it has a relative ammount of corporate owned stores vs. peers... But you know what day-to-day consumers dont care about?? A companies stock price. Whens the last time your whiney butt ate a McChicken and gave a fk what Mcdonalds was trading at? The companies success is entierly unhinged from its parent companies stock price.
With the cost of overhead being ZERO on franchise stores other than a body to work the admin side for reporting, they could open the full 75 stores in Ontario as franchises, save money by no longer holding profit losing leases, still have market share in relation to brand awareness, and pull in 5% of revenue.
The risk/reward play here is nothing like the competition. Even if your previously mentioned chicken little rhetoric is true, (even though the saturation in Alberta is nothing compared to that of some of the US states, and still manageable relative to population) guess what doesnt cost the company? Franchise stores and their preformance. So if it was the case, all the other retailers are going to feel the burn through top to bottom line revenue, ISH only has to worry about less top-line revenue... Which again has zero bearing on the company other than reporting purposes. So while every single pot stock trades in a giant manipulated correlation to the market, certain companies are honing in their business models, and once the dust settles will emerge to be sustainable (which might I add all of these retail plays could easily be profitable if the cut their capex and turned away from expansion towards profitability and organic growth at a much slower pace... At the time many are paying for tons of leases that dont provide an ROI under their expansion mode model).
So to recap, cause I'm worried to many words may confuse you.
ISH = Not so risky - less reward in event of emerging as the #1 player in the end due to EPS. But in such case can take some of that sweet sweet moolah and do a share-buyback. Can and has proven they'll be first to market and grow the footprint in new provinces.
Others = Full blown risk if the market for some reason does a full 180 and oversaturates itself. Holds full volatility to profit cannabalism in such events. But does have more upside if they come out on top. Likely will need to dilute a pile to open new stores in new markets.