Greenspace Brands Inc V.JTR.H

Consumer Defensive Packaged Foods

GreenSpace Brands Inc. is an organic and natural food company. The Company is engaged in the principal business of creating, distributing and selling natural food products and brands into the North American natural food marketplace. The Company markets its services primarily in Canada and the United States. Its main brands include Love Child Organics, Central Roast and Go Veggie. Love Child Organics brand is a producer of organic food for infants and toddlers made with natural and nutritional ingredients. Central Roast is a snack brand featuring an assortment of organic nut and seed mixes. The GO VEGGIE brand is one of the pioneers and leaders in the United States plant-based dairy market. All brands are wholly owned and are sold in a variety of online, natural and retail grocery locations. Its products are classified into two types: lactose-free and plant-based. Its products include mozzarella, cheddar and pepper jack cheese.

TSXV:JTR.H - Post by User

Greenspace Brands Inc

Bullboard Posts

Comment by prokofievon Feb 02, 2018 3:13pm

79 Views

Post# 27492560

RE:Analyst Comment

I like the guys at Lester, they are doing an good job, but are not always right. As you point out, he has missed on some nice gains, but I wouldn't dismiss his comments based on it.

What I believe he fails to understand is how well connected JTR is in the Canadian retail space, having hired previous buyers for Loblaws on his team. This is what he brings to the table as well as capital. When he buys these mom and pop brands, they are undercapitalized, have no connections and cannot afford paying slotting fees to get shelf space at major retailers. Here comes JTR, buys the business to for 1-1.5x revenues, plugs them into their system and over 12-18 months increases sales significantly with the multiple paid shrinking down to 0.3-0.5x. The Canadian market is quite fragmented and there are not real competitors for these assets.

Prokofiev

retiredcf wrote: Two points. 1. It could be a bit of sour grapes here because he could have doubled his money had he purchased it when he was originally looking at it. 2. It doesn't sound like he's been following the company recently. GLTA

https://www.bnn.ca/video/stephen-takacsy-discusses-greenspace-brands~1314417

DON'T BUY

Greenspace Brands Inc(JTR-X)

January 29, 2018

He met the company a few years ago and follows it on the side. They acquired mum and pop kinds of brands and are trying to consolidate the industry. They are up against giants in each space. They will have to invest heavily in advertizing. He passed on it.

Stephen Takacsy, B. Eng, MBA

Chief Investment Officer & Portfolio Mgr, Lester Asset Managem...

Price $1.510

Owned Unknown