RE:Re: Question for "Toorealistic"MGLORD wrote: Admittedly, I'm no fan of "Toorealistic" (or Tom Harley for that matter; I view them as being one and the same). This said, perhaps I've missed something regarding "Toorealistic's" motive and/or reason for posting. So I ask you this "Toorealistic": What motivates you to present the information as you do?
What motivates Toorealistic? That's an easy one, he wants people to panic sell so that his shorts can get covered before the SP skyrockets. Just look at the volume on Frday, it was mainly short covering on the OTC side. Presumably there are not a lot of sellers on the OTC side, and hence, the market makers are naked shorting to provide liquidity (look at the OTC short reports for SPRWF - substantial short covering on Friday). This stock has been one of the most manipulated and we all are well aware of that. He's right in that the cheap warrants/options have made it easier for shorts to add downward pressure on the SP, but once investor sentiment swings (especially since being listed on the TSX), the bulish momentum wll put these shorts in a very precarous position. It was easy to manipulate this stock when it was years to months away from producing any significant revenues, but now that even Supreme has issued a guidance to be producing at FULL capacity by the end of the year, we are looking at $100s of millions in revenue in 2020. I was an early investor in Canopy, and it was the exact same story with them in early 2016. Lots of short interest, but eventually the bullish pressure broke the shorts and that was part of the reason their SP skyrocketed, since shorts were furiously scrambling to cover. I hope that Toorealistic can take some lessons from recent history. Even the boldest of shorters will eventually concede when the cost to borrow is too great to yield a positive return.
And why is he assuming that warrant holders will immediately market sell their warrants before they expire? If you exercise a warrant, you become a shareholder and have no obligation to sell your shares, particularly in an uptrend. As stated before, this company's SP has been manipulated for the past couple of years, and the strong fundamentals of Supreme will eventually catch up to their SP. Currently, there are 60,198,267 warrants at an average price of $1.12. The last of them expire in November 20, 2020. If they are ALL exercised by then, that will add another $67.5 million dollars to Supreme's balance sheet. Combine that with projected revenues of up to $325 millon (avg price of $6.5/gram wholesale, according to last MD&A) and that's not even incuding the international sales of oils with Medigrow Lesotho (Supreme has an exclusive partnershp with them, whereby Medigrow is responsible for the output and Supreme is responsible for selling the product internationally - and the purpose of being involved in Malta is to both grow and process cannabis and cannabis oils for the distribution in Europe). Think about it, why would you use expensive grow space in Canada to bulk produce cannabis oil when you can grow it in a region with a temperate climate, cheap hydroelectric power for processing, and abundant natural freshwater. This is a very methodical management team, and they aren't blowing their funds on poorly thought out, hyped ideas. They are also selling their trim at a cost of just above $2/gram for high quality cannabis oil extraction.
So yeah, you can act like the SP will continue to endure hardships over the next year, but in reality, this company is primed to explode and quite frankly, the position they are in right now from a production/financial statement is very enviable. Good luck with your shorts, I'd suggest you cover sooner than later.