RE:RE:RE:RE:RE:RE:Speaking factuallyI didn't mean to say that the medical market was small, but rather the growth of it is going to slow like it did in Canada once legalization starts occuring in those markets. I'm not spitballing here, its a fact that medical applicants in Canada for marijuana have drastically slowed since legalization.
How do you view the cash they have spent as "throwing it away"? Just out of curiousity, because I don't see any ridiculous expenditures that were unnecessary. Other than bringing a corporate PR inhouse, which was silly.
I agree that they are somewhat "one dimensional", but I tend to view their company as being agile thanks to that. They aren't going to be weighed down by unnecessary expenses associated with licensing costs and developement for things such as edibles.
FYI the whole "premium bud isn't needed for extracts" is correct, which is why fire uses their TRIM for processing, not whole flower. So they won't be wasting any of their high margin flower on it, but the excess trimming, of which Supreme has copious amounts of due to their polishing process.
All in all I agree with your views on how the market is viewing them, I just believe most analysts and institutions are out of touch with the realities of the recreational user. I have smoked for most of my adult life, and I would always be willing to pay extra for flower that looked, smelled, and smoked well.
If you adjust their Q2 for a full three months of rec use, they were over 10mm in revenue, which is where a lot of people wanted them to be. If they hit 12mm in revs next quarter, I will view that as tremendous progress, however I fear most retail investors will view it differently. I have good information that they will be cash flow positive next quarter, and that will be big for them.
4 years is a short time for an industry to be around, and scaling a company from nothing to a 500mm valuation in that time is not as easy as it looks.