Supreme/Cannabis SectorBeen a while since I've visited Stockhouse and I see that it's still the same old garbage on here.
The "bashers":
- lost money/no money left to invest
- had enough money to buy one stock, probably bought too higher and sold too soon
- will spend the rest of their time bashing instead of making smarter investment decisions
The "pumpers":
- got in at a low price
- slightly more aware of their investments
- have done the proper DD (not through Stochkouse posts) to make smarter investment decisions
I believe neither the bashers or pumpers are being paid for anything on Stockhouse. Why do people on here acts as if everyone is only able to afford shares in one company?
Anyways, onto my actual subject post.
Supreme has branded itself as a premium brand and according to the Midas Letter interview sells bulk at 6$/g. Anyone can claim and say they're a premium producer of cannabis but at the end of the day the consumer will decide where their money will go. I would say that being able to fetch 6$/g MINIMUM for their product speaks volumes in itself, especially if they're producing for under $2/g Facility will be completed by the end of 2018 and will be producing a minimum of 50kk grams of cannabis by the end of 2019 as stated in the Midas Letter interview posted by another member. This is not taking into account their plans for a new facility. If you think Supreme is bound to fail with having employed 600 people in the city of Kincardine you're highly mistaken.
The new deals and expansion will not do much in terms of share price at this point as there is 20 other companies getting the same deals. Supreme must prove that they are indeed a producer of premium cannabis. It will come down to global expansion/deals, uplisting the stock, margins, ect.
I did say that Supreme would hit a minimum of 3$ by end of 2017. Some people may have sold, some may have hoped it would go higher and held on. It doesn't matter in the long run wether you got in at 3$ or pre consolidation days. People have made money here and some are in the red but if willing to hold will see green by years end. Not everyone is a day trader and there is poeple that don't follow a stock they're invested in 24/7 believe it or not.
I can somewhat agree that Fowler was a bit late to the game in terms of issuing news/building brand awareness/hype, building shareholder value ect. but it really depends on how you look at it. He didn't want to make claims he thought would be dismissed, such as being a premium producer without having grown any cannabis, in my opinion.
Things that bother me:
- Hired company for PR/investor relation hasn't done much for shareholders as of yet (waste of $)
- Originally stated that the company once fully operational would employ 300 people maximum, that number is now 600 with no explanation as to why twice the amount of employees are needed (I can only assume that they're wanting to use people to better care for the plants instead of automation)
- No news about newly purchased land other than it being for a higher quality flower
- Any plans for uplisting/why hasn't one already happened?
- I feel like we might see another financing by years end
None of those other than the last one (if they do/what price) really bother me enough to sell all my shares. We as shareholders must have some faith and trust that the company and management will continue to build better shareholder value. This sector is just warming up and getting started. If Supreme is at current levels by end of this/next year then they will be a prime target for a buyout.
Things to take into consideration:
- Global demand/change of mentality toward cannabis
- Incrase in tourism due to legalization
- Oils/edibles possible by end of 2019/20
- Job growth throughout Canada
- Economic growth due to legalizaition directly and indirectly
I believe in the near future we see more consolidation in terms of which companies remain growing. The rest will be based on who grows the better product and at what margins as stated by other users on this board. In my opinion it is better to be a producer of premium product only than having products ranging from $5+ (retail). Remember that LV only needs to sell one bag whereas a lower brand will need to sell 10 bags for the same margins. May be a bad analogy but nevertheless its the truth.
If truly a premium producer then the only thing they'll have to worry about is keeping inventory, won't have trouble selling once recreational is in. Only time will tell and if you don't like your investment you're always free to put your money elsewhere, but to say the company is bound to fail and only one company is the right investment is just pure stupidity. Putting more time into DD and less into spewing garbage is the only thing required to make money on ANY stock.
Overall I do believe that Supreme is undervalued at its current price and believe that its actual worth is somewhere in their 52 week high range. Always remember the turtle and the hare and that sometimes things are better taken at a slower/safer pace. I'm sure we'll be getting a lot more news in the coming weeks/months. Apologies for the long post and best of luck to all who support their investment, whatever that investment may be.