Thoughts on the HIKU deal...1. I really can't believe that WEED paid a quarter of a billion dollars for the brand Tokyo Smoke and the concept of coffee stores. And don't get me started on the TS clothes line. BONKERS.
2. A quarter of a billion dollars is not a lot these days for WEED, but it is not immaterial. I think they paid the equavalent of about $400 million for Mettrum. Tokyo Smoke is not worth half of what Mettrum was worth. Tokyo Smoke is not really worth anything at all.
3. There have only been a couple of moves that I've really thought WEED overpaid. I thought they way overpaid for the 3 clinics that became MainStreet locations to advise patients on cannabis. That acquisition turned out to be a waste of time, but this acquisition is nuts. It's actually f*cking bananas.
4. In the long run this deal does not matter. What matters is that management made it. A few more bad deals and these guys will not be looking so rosy.
5. WEED has a couple of past screw ups, but I've always thought the management was smart as f*ck. This is a dumb deal and really unnecessary.
6. With new information comes new decisions. I will be reducing my shares in WEED accordingly. I'm going to take WEED down to about 10% of my overall portfolio.