Post by
mrmomo on Jul 07, 2022 7:35am
Nice move BUT bad market.........
A sound & smart move by High Tide mgmt to expand operations and gain a foothold in different places while not over extending themselves financially. This should bode well for the company in the coming years. This is the way to do it for Canabis companies in this difficult environment, follow High Tides lead and picjk up cheap distressed assets at fire sale prices. This is the way you slowly build out a large, profitable & successful business without too much risk. And the best & safest way to do this is during times of economic hardships. Link below for those folks who are interested in the news.
With that said though, not all is rosy. Don't misinterpret my intentions here, i personally like High Tide as a company and an investment in the Pot space. I have them in my top 5 in this sector as inticing investments. I like the way they are carefully managed and the direction they've taken. With time and a better market, they could even possbily be an attractive takeout target from a larger EP or entity. The problem here though isn't micro or the company related, it's the macro concerns & overall sentiment for the industry. Until this passes, any company will be uninvestable for some time.
I guess if folks have a time horizon of at least two years, it MIGHT be worth it to start a position now at these levels. And hope you made the rgith choice at the right time with the opportunity costs not being too high. Personally, i rather wait until this "consolidation phase" in the sector passes, which imo we are in the latter stagges of Phase 2, before making any financial commitments. By taking this approach, even though it might cost us a bit more to re-enter /enter this space, we'll get a much better, clearer picture of what's going on & more importantly the stronger survivors. I don't think any investor here wants to be stuck with a "dead" investment for a prolonged period which could be months if not years or worse a failing one.
Anyway, that's my 2 cents, take it for what it's worth. And for those that take the plunge or never sold out, i wish you luck. If there's one company that's worth taking that risk, High Tide is one of them and you've at least chosen wisely.
https://ca.finance.yahoo.com/news/high-tide-acquire-nine-operating-100000800.html