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Supreme Cannabis Company Inc. (The) T.FIRE

The Supreme Cannabis Co Inc is a Canada-based company engaged in the production and sale of medical and recreational cannabis. Its portfolio includes products that address recreational, medical, and wellness consumers. Its brands include BlissCo, Truverra, 7ACRES, Sugarleaf, and Hiway.


TSX:FIRE - Post by User

Comment by WealthBuilder99on Sep 13, 2020 7:24pm
145 Views
Post# 31550622

RE:Constructive conversation

RE:Constructive conversation

Nice approach Method. 

i think for me personally; if we don't see a $20m+ quarterly revenue run rate, along with positive free cash flow and profitability by end of Q2, I will likely significantly reduce my position or exit completely. But I would like to be close or meet that by Q1 ideally (I will re-evaluate then)
Note: Colin Moore stated profitability within 12 months at previous Q2 earnings

I also anticipate an earnings beat in Q4 (the bar is set really low) and significant short covering driving up the price leading into earnings. Even if I was a bear I would not risk an earnings beat at current prices. But this part is more speculative on my part.


Method wrote:

Obviously like the rest of the world, the views on the outcome for Supreme's results and security prices are very polarized.

But unlike politics we will be seeing financial results from this company over the next year. On that basis I wonder if we can measure how far apart the Bears and the Bulls are.

Obviously the Bulls think revenue and cash flow are going higher. I thought Johnale made good arguments in an earlier post so I won't rehash. 

The Bears think they will underwhelm on revenue growth and even if they meet street estimates there will still be negative cash flow.

If I have mischaracterized your views, it really doesn't matter.

So I ask the Bulls to say what F'2021 annual revenue and EBITDA number would make them sell their shares and/or bonds (at the current price)?

I ask the Bears to say what F'2021 annual revenue and EBITDA number would make them buy either the shares or the debt (at the current price)?



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