RE:RE:RE:RE:Patience is a virtual
Sorry, forgot to mention. What I said is just my opinion. Not suggesting anybody doing the same.
Nobody knows exactly what is going to happen in the market.
But, I believe that fool me once, shame on you. Fool me twice, shame on me. TWD has fooled me twice already.
And from chart, you can also see, there is an up trend line at current 2.6$, it is the resistance. A week stock like TWD will be easy short down to 1.9$ from here.
If you think about the huge green house and more than 50 employees they hired, you will see my concern. You can not justify the revenue with the number of employees. The revenue/person is too low. And the market is still at its very early stage of developing.
If Bedroncan needs to burn 3 millions $ a year to keep up 52000 squre feet grow room, then TWD will need to double or tripple it. From TWD report, it is clearly shown that they can only sell 150K every 3 months, So, they can only sell 700KG this year. The margin is only about 2 million$.
On the other hand, Bedrocan announced that, they are going to open 6 grow room out of 34. If 34 can provide 4000K dry pot, then 6 rooms is targeting at 700KG dry product which Bedrocan is on track to sell.( the 240KG will be enough for Bedrocan to sell for first half year).
So, you can see how percisely Bedrocan team is executing its business plan and keep the cash at the right place. This is the only company that you can make a safer bet in this uncertain pot business.