Supreme Cannabis Company Inc. (The) T.FIRE

Not about size - it's about efficiency

[theTransporter]

Looking at the news Canopy put out tonight shutting down over 1M square feet of greenhouse space in order to "right-size" for the real supply/demand in this market, it confirms that the race to get the largest number of square feet was a losing one.  I remember a couple of years ago where the bigger the facility a company announced, the higher their stock price went.

Supreme, although having a respectable size greenhouse, wasn't the largest, but at this point I believe it's just the perfect size they need for this market.  They didn't have to invest billions and write down billions like some of these big behemouth companies are doing.  Despite the setback in recent quarters due to adjustment in startegy from B2B to CPG, Supreme is of a size that can navigate through these murky waters more nimble than the big guys.  With the compartmentalization of the greenhouse in 10,000sq.ft isolated and independant rooms, they can granualy scale the production on current demand in a cost effective manner.

I believe in the end of the day it will be the smaller companies that will prevail.  Supreme delivers quality product that the consumer demands, has already taken "right sizing" measures to control costs, and has demonstrated adjustments in price to ensure they move product.  They will be offering products at the right category mix proven in California focusing on dry flower, vapes, convenience products (pre-rolls) and shatter/resin.  Edibles and especially beverages make up only a small market segment yet require significant tooling and investment.  Look at how much Canopy spent on their beverage production lines only to have issues with the aluminum cans absorbing the THC out of the fluid, for a product category that makes up 2% of the entire market demand.  

The next few quarters are very critical for Supreme to demonstrate that it has made the right adjustments in strategy and being executed properly by an expereinced CEO (Colin Moore) and demostrate growth QoQ going forward.

They don't have to sell as much volume of product as the big boys out there, but sell out the max they can produce out of their cultivation capacity in the various product mixes, and be profitable at it.  That's what will win going forward.

[maritimedreamer]

Well said trans.... supreme has to get product moving and show that they always had the right balance of size to quality. We need to see some execution here and some sort of news would help, show us the company is still evolving

[watchmeplz]

In my opinion, it just virtually impossible to win with the legistion as it is, the amount of employees needed regardless of the facility size, all while having a competitor that's producing volume greater than the LPs and a fraction of the cost due to crop loss/taxation/legistion. Its gonna be even crazier for the LPs when they have this huge inventory and the facility has to shut down, are

[GHZTECHY]

I wish we could find out the cost per gram produced at 7 acres. I did not see it in the last financials. This to me will show how the company is improving over time. ACB did comment on their cost which was 88 cents. To be competitive, this cost has to come down alot. The other factor is to get consistant THC percentage at the higher end of all their products. When I go to the dispenceries

[OptGreen]

They can't get caught in price wars or trying to compete on a volume basis GHZ, they have a superior menu to 90%+ of the product shelved now and there are higher costs to producing craft level product. They have out there Humble & Fume monitoring the pricing in their target areas and will be adjusting prices according to the competition in the area...there is very little quality product at

[OptGreen]

Agreed Trans, can't say this is good news for WEED but they can weather this....this is good news for FIRE, or it definately should be, and the SP should be heading north at tomorrow's open, that is if any of the analysts know/ understand what is going on. Moore and team will not be far off original guidance, within reason, and as they start generating north of $40mil a quarter, maybe

[Tomharley]

Still pumping at .30cents eh? While your buddy John jumps on Agra.

[meowmeowmeow]

LOL "effiency" and "supreme" should never be next each other in the same sentance. This is the same company that boosts about employee count (manual labour) instead of automation (like Aphria). The same company who's corporate sales team is so dog sh.it in signing up provincial sales contracts that they have to OUTSOURCE the entire task to a no name cannabis accessories