RE:RE:RE:seems there is a consensus that supremeYou can't apply the same logic to others in the sector, Trans, as they have a totally different business platform....they are retailers and producers, for the most part, and are spread to thin on both and will need much more financing going forward....some will be bought out and some will fail, all while Supreme will just be starting to hit it's stride, with a fraction of the costs of production and with profit margins that are better than most.
Why do want a bunch of fluff built in to the SP?.....unless you are ready to sell, Supreme is the nicest build out and path taken to generating real, sustainable revenues in the markets today. Look at the rest in the sector, and I know you have because you have been here as long as, or maybe longer than, I have, and Supreme has laid out the best, well planned/ executed start up in the sector.
I think that Supreme will be in a position to self-fund much, maybe all, of the expansion,plant/ equipment costs from here....but in any case Supreme will be a solid leader in this sector without a major partner or injection of cash that the others need and will need more of going forward....so there will probably be no fluff in FIRE SP, rather SP will rise on solid fundamentals with very little, short lived retracement, JMHO.....Opt
theTransporter wrote: OptGreen wrote:
Undervalued, not so much.... based on the paltry, pre-legalization market demand, Supreme can't even bring their business plan and production to an idle without flooding the current med market which would just increase costs and significantly reduce revenue margins. As a result, sales volume/ revenues to date do not justify much higher SP levels.....this scenerio will change as increasing market demand justifies increased production and completion of facility expansion.
I understand your logic with respect to Supreme's valuation being fair for a present market that isn't legalized however everyone else in the industry is being valuated on future revenues in a legalized market with the exception of Supreme. They seem to be the black sheep of the herd and not getting the due respect they deserve for sole reason.
I bet if you were to apply your valuation logic to all the other LPs out there and you will be left with a small fraction of their current valuation. Why is MYM valued at 3 times that of Supreme when they posted revenue that was lower than Supreme revenue in their previous quarter? This is without even considering the financed production extension capacity.