OTCQB:VVCIF - Post by User
Post by
Schaffhausenon Jun 20, 2019 9:28am
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Post# 29843683
Why I bought large position in VIVO at 0.50
Why I bought large position in VIVO at 0.50Seems to me that a few things are in favour of VIVO at these SP levels:
1) Market cap versus revenue is in the top of class
2) Business model is more resilient to cannabis oversupply which has created this oversold situation (ie. pharma focus, international markets, class leading price/kg, and brilliantly timed expansion strategy to reduce low grade produciton costs with airhouses and outsourced supply up to 30%).
3) Super strong balance sheet
4) Market will need to start picking survivors, VIVO will easily be in the cohort of survivors given its careful and well directd startegy.
5) 1-4 above make VIVO a top-of-list near term buyout prospect as all majors players need to QUICKLY expand there business in all the directions that VIVO has already cultivated (excuse the pun). They will seek to buy high margin brands, patients, supply contracts, international positioning, formulations, and lower cost production capacity to weather the potential of oncoming oversupply. No sense in buying straight up growth capacity to strengthen business, rather, its the retail side that will be driving upcoming acquisition action.
Cheers,
Schaff