RE:RE:RE:RE:RE:RE:WTF is wrong with this stock? Some positive acknowledgement from Brentkosta? Welcome to the debate man.
1) These investments come with risks for sure - I acknowledge you on that one. 50/50? my due diligence says otherwise - but thats your opinion.
2) despite their lisenced capacity - (due to rooms lost and 8 weeks lag time for grow/harvest/pckg ship) they havn't ever been anywhere close to 75% production.
I won't get into details, but suffice to say that Q3 (this quarter) based on plants planted they were at 27k kg annualized - so still a bit over 50% - and this q will be the most they ever produced.
Q4 well see in financials.
So you talk about their "margins" well they will get significantly better q over q with scale.
Good quality at the right price - I said before in another post. They completed a full audit and market research to determine the price points in each market where they can sell the volumes of flower they can produce.
"let the small batch micro take premium sales"
well fire is going to take those revenues too with their 7accc program.
Now supreme vs Aphria - I mean the survival of supreme doesn't depend on fire beating aphria?
Fire is carving out their own market share - and because of their quality advantage - short of a few LP's they can't compete with supreme.
At full production their cost per gram will be as low as the big boys.
So that leads to profitability - if supreme can sell the majority of their production - then - supreme will be extremely profitable UNLIKE aphria/canopy/aurora who need to sell some enormous volume to be profitable.
I mean aphria had 144mil in rev and only 5 mil ebita??
Supremes greenhouse is rightsized to this market - and they have the best chance of any to sell their full production based on quality and price. They don't have far to go to sell their full production and if they can execute - they will be extremely successful.
to the benefit of all longs....