GREY:WSLFF - Post by User
Post by
Mainstreeton Jan 23, 2020 1:28pm
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Post# 30589688
Practice Patience in Investing in Westleaf
Practice Patience in Investing in Westleaf Lots of posts on here advocating that stock has bottom out. As forfun stated, lots of us on here have been advising caution on this stock for months now, and if you have been paying attention there is a lot of critical thought that has been posted on this very forum which might have been lost amongst the pumper posts which have yet to provide any tangible thoughts as to why this is a good buy.
I believe this stock has much more potential with the recent merger followd by the removal of some key personnel (or not so key depending on how you look at it). If you read my posts from several months ago I mentioned that many of the founders (including outgoing CEO and President) and directors were a group of friends who continued to hire more underqualified directors and oversaturated their management team. The costs of this overhead and the lack of execution of their plans were reducing the runway on their burn rate drastically. Look no further than the new CEO coming in through the merger and making immediate efforts to cut costs. And don't think that the savings from cutting those jobs are immediate. I know through the grapevine that the CEO received a package of between $250-$300k (and still holds shares valuing over $1MM which I'm sure he will capitalize on by selling a portion in the near future, not bad for a year and a half gig of managing a company poorly....) and obviously the remainder of the 10 employees who left were also packaged out.
With that said, the opportunity is there to turn the ship around with a new company and CEO coming in. But I think a savvy investor waits for this to drop further as they are inevitably going to need another infusion of cash from ATB. I believe many more of the director team will be let go moving forward here (not surprising that they removed the "Meet the Team" page off their website). I truly anticipate that they will sell off the retail arm shortly and focus on the product growth and extraction side, which is what I believe WeGrow saw value in.