GREY:MRRCF - Post by User
Post by
GeneralAladeenon Mar 28, 2019 1:38pm
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Post# 29549431
Case to be LONG and not short
Case to be LONG and not short Whether you like it or not - Ben Ward gets a lot of shite done. More than any other small - mid cap cap grower (and a few of the large caps) by a long shot. Only issue with Ben is his dumb guidance and delays. Every single grower has had the similar problems with missed revenues and delays. We are not alone.
What we need, is to get thru till Q2-Q3 when real revenue starts rolling in. I think the guidance is purposely conservative to either put it to the shorts or keep the vultures at bay. It is literally impossible with the 7 x 8800 sq ft currently licensed grow rooms and new rooms coming on board to do only $7.7mm in Q3 as per guidance.
According to my math 8800 sq ft (9000 plants per room) x 7 rooms x 286 grams/ sq ft = 17.6mm grams x $7.50 is over $132mm in annual revenue. Unless they are doing a severe hoarding of pot for EU (which would yield double or triple that amount) then something is amis.
Just had another thought about who stands to gain from a ridiculously low share price. Clearly a friendly or hostile acquirer would, shorts would, smart investors buying shares would, but one I hadn’t thought of is .... Alpha Blue. Their convertible debentures can be converted into shares for a period of one year at a VWAP from “time to time”. They get a boatload more shares if our share price is at .85 than at $1.50.
Ive bought shares at $1.02, .92 and .82. Will continue to add if they drive this down further. By the end of this year we will be in pace to sell $150-$200mm in product with the highest margins in the business. You do the math.... GL