This is NutsIts like December all over again.
I knew that eventually, these overvalued MJ stocks were going to get clobbered. I thought this company would escape a downdraft because of our superior performance. Name 1 company that is actually cash flow positive operationally. None? These other players are in multiple states and blah blah blah, but their revenues are usually small or they are larger and lose a ton of money. Try operating in 10 states with a few stores per state. How can one make money?
I remember reading that Florida was going to restrict THC to 10% and that this would be bad for business. Perhaps this is the cause of our decline. Of course, competition is heating up also. But it appears to me that the stock financing window has closed. More dilution will be very expensive. So, these companies like Medmen, Ianthis, Liberty are going to be running out of money soon. They are all following the Amazon model. Achieve dominance, and profilts are not important. Fill the gap with financings. Eventually, you achieve dominance and everyone falls away and you are left with all the profits. Trulieve is using an old fashion approach of profitable and steady (i.e slow) growth. I think Amazon was an aberation and these other companies are going to be in serious trouble soon. I am hoping that Liberty goes bankrupt soon and we can pick up their best locations for pennies on the dollar. I noticed that they have not reported earnings since Nov 30 quarter end. I am sure when they do report that the picture will not be pretty.
Lets hope next week, this stock stabilizes and rises a bit.