RE:RE:RE:RE:RE:RE:RE:Debenture Arbitrage The Bear CaseTheir cost structure has been changing with each and every earnings report, so as far as I can tell the lads are in the driver seat there, and keeping a close eye on it. it's the only way since there's no "How to grow Quality cannabis at scale for stupid" books out there. It'll be a balancing act for at least another year... Next thing they need to work on is yeilds, and continuing to up the quality, if they can do both or even need to do either...
BrokenKeyboard wrote: You will come to see soon enough that if you are not the low cost provider, then you need the best product to sustain high margins - investors love margins. 7Acres has consistent reviews as the markets top quality product, and word of mouth alone will sell it’s brand, as well as the Lot 16 and KK brands once released. The debenture arbitrage play is not going to survive for very long, it’s only a matter of time. Capacity constraints are only temporary, they would really need to mess up their cost structure to get it wrong at this point.