RE:say it ain't so??!Is this the beginning of reality for the sector? I would imagine so, but there seems to still be a lot of denial out there. I’m sure that will get remedied soon enough when the war chests start to get hit hard by old father times.
It’s easy to get caught up in the moment, especially for the CEO’s involved in these businesses. You have to realize some of these guys are surrounding themselves with YES sir/ma’am people, and that’s not always good in keeping an accurate view of the road ahead. Then you add in the hype created by size over value/quality and the “potential” of sales(speculation) and the rest of the real fundamentals start to go out the window.
Amazon, Toyota, Walmart… What do these have in common with our Supreme? The same fundamentals most successful businesses share, built small, find out the equation to make it work, bring in income, and then expand and repeat... Nav, John and team can literally replicate the same 10k room over and over again until they have 10 7acres facilities, but they can’t do it without the time it takes to train people which usually takes knowing the “equation” and having it written down on paper so others can follow.
The hardest thing to do in any sector or industry is work with people, investing time and money in this area will almost always pay off for any company willing to do so. These are intangibles even the best accountants can’t put numbers on.
The Road to Meaningful Business Creation Identify the goal – Making money while making a difference and respecting the customer.
Road to goal – Achieving large scale, HIGH QUALITY cannabis growing techniques.
Start Small – Grow in 10k rooms
Equation – Practices needed to grow consistent good quality Cannabis, refine
Triple check – They grew three crops before they expanded any further
People – Get together a group of people willing to learn and grow with the company (Core)
Brand it – 7Acres
All this is done before bringing in a penny of income, and yet it’s the equation the company can expand on until they are blue in the gills, in Europe, in the states, in Australia… It certainly deserves more respect from the markets then it’s gotten, but at the same time, it’s a long holders dream. Stacking this paper at these levels this long is out of this world.
Easiest thing to do in this industry. Throw shareholders money on speculative international investments, and sign contracts with construction companies willing to build you the biggest greenhouse ever seen… No real value added in my eyes.
From what I am observing they are currently in the phase of their business plan where they are fishing for their clients, the golden goose as I see it. 20% of smokers consume 80% of the cannabis smoked in Canada, and if they can attract a large following from this group, it’ll be enough to not only sell their whole inventory of product, but also expand into more growing rooms or facilities.
maritimedreamer wrote: Aphria has to take a 50 mil write down from their LATAM (30% reduciton of value) purchase...... no way? they actually paid more then it's worth? Even the big companies had supplie logistics problems? Maybe their product is sub par? What i also find interesting is that these companies are also selling oils already (WEED/OGI/ACB for example) and yet their revenues are where? Man o man.... yes the market is down..... but makes me realize we are in a company that legitmatelyhas a business plan that will shock the market as we execute our milestones. Is this the beginning where quality will matter more then quantity? that the front runners may not of truely been leaders in the pack....... maybe the ones that pumped harder are not the true winners...... this is really interesting stuff here......... what do others think?