RE:RE:Analyst has concerns on ACB's ability to grow premium flower Agree and disagree here. Supremes vision was to be a premium grower They are not a premium grower at this point. I'd say they are a high end-ish public LP.
They dont hold a candle to other small craft growers. Especially with the emergence of the 7 acres auto-trimmer and CPG model. Supreme weed is strong amongst the Canopys, APhrias and Auroras. The big guys make sales from extracts. Not flower. Cetainly not premium flower.
I would venture to say they have a GOOD brand in 7acres and the craft partners are SOLID. But these arent even close to the top legal rec quads. I think Qwest smokers would laugh at Supreme.They arent in the same conversation.
Fowler put so much time into genetics and its not panned out into a premium flower.
IN my opinion, Supreme struggles with an identity issue. Not quite premium. Too good to be extract. (Although they are burning weed, so im not sure thats a good strategy.)
THeir price per gram is dropping to mids territory to compete with other mid brands. Qwest is getting about $80 for an eighth. And they are selling out. 7 acres is struggling to get half of that. Stagnant sales PROVE THIS. 7acres cant even get $12/gram for their "premiums". Thats why they pivotted. They are AA and AAA at best.
I do like the multi 10,000 square foot grow rooms. It is a nice facility. But that facility is too high expense to grow the mids they are currently producing. They need premium to justify the overhead at Kincardine. And they cant do it. Why? Well for starters they dont have a master grower on the floor.
This is a stock I will trade and it does show decent value in comparrison to the other bloated LP's. BUt it would be irresponsible for me to hold this equity long term.
I dont expect anyone to beieve my opinion on where Supreme stacks up in the Premium debate. Just look it up. Do your research.
OptGreen wrote: Supreme has been ahead of the game from the jump Dun, the 7acres facility's grow area is divided into 10,000ft2 rooms for grow control and to minimize/ contain crop loss....the facility is ~ 450,000ft2, less the admin and processing area, they should be close to 300,000ft2 of grow area?
The 7acres facility is second to none....just need a 7acres II on the west coast, the highest quality grow area in the country and pick up the extra capacity needed to meet production required as the company and consumer demand growth dictates going forward. FIRE is and has been ahead of the curve from the beginning. JMHO...Opt
Dunworkin2 wrote: Bad news for ACB, Good news for FIRE...
Desjardins Securities analyst John Chu has increasing concerns about the ability of Aurora Cannabis Inc.’s (ACB-T) Aurora Sky facility to produce the premium flower expected from management.
Though he thinks the Edmonton-based company’s revised covenant provides additional flexibility and its decision to cut capacity and costs “should help keep the company on its path to positive EBITDA (albeit later than expected),” he thinks the output at its flagship facility is “the biggest unknown and risk factor.”
“The company has been testing Sky’s ability to grow premium cultivars throughout 2020 and management did tell us that the facility is still undergoing testing and trials to determine its capabilities,” said Mr. Chu. “Our concern is that premium flower is generally grown in a smaller footprint (less than 250,000 square feet or a maximum of 25,000 kilograms per year of capacity) and usually in an indoor setting vs a greenhouse; however, we are aware of premium flower being grown in greenhouse settings but under a smaller footprint (eg Rubicon with 11,000 kilograms per year of capacity).”