RE:RE:RE:RE:RE:RE:crazy i think your on the money here with regards to MM strategy. At some point, it should stop affecting the stock -
as for Beenas "headwind comment" - I asked Craig from IR for clarification/insight. He said she just didn't want people expecting 55% q over q growth, and she was trying to temper expectations. But he said he expects growth.
remember - we had ~ 3mil sept rec sales.
we ramped up in q2 as stores continued to open and increased distribution and 3500 new listings
likely went (oct/nov/dec) 3.5/4.2/5 mil/month rev. (12.7mil total)
so we exit December at ~5mil run rate monthly. Even with 10% drop and completely flat sales - we would have 13.5mil rec.
which is unlikely given Beenas abilities, and store increases continuing in Ontario - further distribution from humble and fume.
I think it's reasonable to expect something close to 15 as we know stores have re-opened and Toronto opening for sure mar 8.
then wholesale at 4 something... (minus the isreal shipment - but add shoppers and Australia)
you get close to 20 pretty fast.
she's purposefully conservative. After last conference call I came out of it thinking we'll have a solid 14mil and little deviation. She crushed it obviously.
StayInvested wrote: Hey thanks for pointing that out! You're correct, when I read the amendment I must have been confused. You are correct on all counts. That being said, they are still getting a fat interest rate, that if you consider the value of the debt as a whole, is very attractive. There is almost nowhere else you can get rates like that.
As for why would the "short" if they were long, they may not be. But they may be lending out their equity to short interest parties so they can collect a few points on the margin. This way they have others shorting the stock for them using the equity they hold. So they are making a couple percent on that, a nice fat percentage on their debs, and theoretically this can go on for some time.
If you are a fund, and you can generate 15%+ guaranteed interest off of one company, you do that all day every day. Cannabis is a volatile sector, and these guys like stable growth that they can control. Seems like a perfect recipe to me.
Look at the massive increase in short interest after the raises. At one point 1 in 4 shares was being shorted. I think the count on Feb. 22nd was 80+ mil in short.
Guys, just to be clear, I'm long here. I just think it will incrementally creep vs. explosive growth. I like the metrics, I like the restructured balance sheet, I love their cash position. I don't want people here getting frustrated when we trade sideways for 6 months. Beena stated next quarter will be flat due to the store closures during the quarter. So people thinking this is going anywhere fast will be sorely disappointed.