FIRE short interestInteresting post I found on Reddit that I thought I'd share:
https://old.reddit.com/r/weedstocks/comments/9dnqty/fire_short_interest/ Supreme was the most heavily shorted stock on the TSX by volume for the last two weeks of August with a net increase in shares shorted of 6.5 million shares (bringing it back to its short interest high of around 11 million shares during the share price spike to $3.5 from Jan 2018). This is striking that the short interest is nearing its all time high yet the company been executing nicely and the valuation is considerably lower than the last time the short interest was this high. For these reasons, I believe patience will be rewarded come Oct. 17.
Laying out the bull case:
- 78 million in cash per Q1 financials
- Six provincial supply agreements (including critically important markets BC & ON)
- BlissCo EU GMP licence imminent leading to medicinal sales across Europe
- Medigrow GMP medical-grade cannabis oil for export
- Recent additions to executive team with ties to largest publicly traded wine company (Treasury Wine Estates)
- Relationship with Molecular Science Corp
- Sales partnerships with mature LPs including Aurora, Emerald, Namaste, Zenabis, Terrascend, Puresinse, Potanicals, and BlissCo
- High-end recreational 7Acres branding and pricing power (https://www.reddit.com/r/TheCannalysts/comments/8mui1m/brand_grades_v1_amateur_hour_edition/
- Completion of flowering rooms at 342,000 square foot 7Acres facility expected by Dec 2018
- $4.50 target price from PI Financial analyst Jason Zandberg based on 32x EV/EBITDA for 2020 (i.e. the same valuation multiple used by the HEXO activist investor today to arrive at $18)