RE:Heres's how I am playing this. A REAL post.Great post, ive said this many times over. To friends and on this board. Show me a better 10 bagger.
Only question I have is are the A.Warrants worth half of a unit. Such that when you use a warrant calculator you have to divide it by 2.
I own both HIP.Wt and HIP.WT.A see how it shakes out but looking for an oppourtunity to fully switch to A warrants. Just been to low volume lately.
run33 wrote: Ignore all the garbage on this board and read this.
These guys have $120M cash in the bank, and according to the Winter's prospectus, only requires $30M to complete the build up to 25,000KG.
So other than G&A, where's the other $90M going?
I believe they are pivoting - selling off the asset that would allow further growing expansion, and renaming the company NewStrike Brands.
Pivoting into what? I'm not sure exactly, but it seems to me like these guys care more about making money off the paper than they do a profitable company - BOTH major PP's were short-forms that were completed by shorting the stock and covering with the placement.
They want to make money off another major run in the stock, but with the market cap already hovering around $550M at a buck, where would they go from there?
So you announce a share rollback, this achieves the goal of lopping the share price in half - or in this case 60%. This is now a great place to now run the stock from, there is much more runway.
Now our friends need to get papered up for the run - how's that going to be achieved? Watch for them to acquire a couple of other smaller companies in order to load their buddies up with stock. This will happen following the rollback, which I think they will go 5:1.
Once we head into Fall, I think this easily does $1.00-$1.50 (pre-rollback). These guys have some firepower - they cranked it to $3.30 last Winter (a $1.3B cap!!) with only $13M in cash in the bank at the time. IMPRESSIVE.
So, do you buy the common stock here? You could. A double sounds boring though doesn't it?
I think the way to play this is the 'A' series warrants. HIP.WT.A (*NOT* HIP.WT)
Why? You get *5 YEARS* time value, with a strike price of only $1.00 - for the price of a dime, right here, right now. These things should be trading at $.20+ right now, today - but they're not. Use a warrant calculator to see what I mean.
If the common stock does $1-$1.50 (pre rollback) then you are looking at $.50-$1.00 for the 'A' warrants.
Doesn't a 10x bagger sound so much more appealing?
If I owned any common stock in this, I'd be ditching them for those 'A" warrants right now.
What happens if the stock goes NOWHERE and is still $.43 cents after the winter?
Well, because of the 5 year time on the warrants, little to no value is lost.
What you want in a trade, is a worthy RISK vs. REWARD. If you believe in the marijuana sector moving this winter, I cannot find a better trade. But if you find one, let me know.
GOOD LUCK TO ALL.
Full Disclosure : I own the 'A' warrants. And no, I won't be flipping for a penny.