RE:RE:RE:CannTrustThe cannabis hype is the issue across the board bk, the main reason for big corrections for all and you can see that in the quarterlies much more clearly every quarter...none of the valuations justify their current SP levels.
WEED for example has only begun to correct and that correction looks to be brutal and the reason Constellation sent Linton to the house. They have huge market share because they were in early and along with few others were the only real producer in the game, but they are shelving grass for most of the entire menu.... a million sq ft of grass is going to lose market share and fast.
FIRE is the inverse of the WEED story and the respective SP levels reflect that. Fowler understands that quality product is what is and will be the demand...more importantly,that to produce the level of quality to meet that demand and maintain that preformance on 250,000ft2 is a feat few if any can bring to fruition.
We are seeing the correction starting to play out as retailers can not keep any of the entire FIRE menu on the shelf with an ever increasingly aware consumer walking past everything to the FIRE section on the top shelf...and if out of stock they go down the street to buy.
FIRE sells it's product at an ~ 20-30% premium at a minimum compared to the rest and be lucky to be at 15% of sales production as of last report...on resonable sales/revenue estimates going forward debt and dillusion appear to be very manageable. Key to the FIREstory is the building of the company to produce the level of quality at scale, partnering with Dinafem, KKE, Medigrow et al, acquiring/ training qualified staff, etc all to generate the production of the leading, state of the art facility in the industry. Building the best of what is needed, to produce and market the best product in this industry, or any industry, while maintaining a tight, acceptable balance sheet is what success and building SH value is all about, JMHO....Opt
FIRE is all ready in a league of it's own with the best is yet to come, where as WEED et al are currently headed in the opposite direction and fast with SP levels that could have a long ways to fall while FIRE has nothing but upside ahead with SP a long ways to rise
brentkosta wrote: Why is the current $400mil market cap and nearly $800mil fully diluted market cap on a run rate of $40 mil annual sales, operating at a negative gross margin, considered "the most realistic valuation in the sector." ?
Without cannabis hype, this is a 20 cent stock on its current outstanding shares and share/warrant overhang
OptGreen wrote: It is definately beyond puzzling jf, when a success in it's own right like Constellation punts a guy like Linton for cause, there are those that want him at the helm of Supreme,while Fowler builds a solid company, state of the art facilities and generating the highest quality and in demand product in the industry, working with world class partners in the cannabis industry like Dinafem, KKE et al, from the ground up....and he should go?
The current SP is the most realistic valuation in the sector, as sales/ revenue dictates all in all sectors,
and with the most upside while most of the rest have SPs that are ridiculous on the high side and if losses continue, maybe worsen for some, they will be lucky to survive....FIRE is the cokk of the walk and those tail feathers will really show on the balance sheet in the coming months, O'Green river, JMHO....Opt jfogarty12 wrote: The share price is as it is ...an annual event
every summer --- volume is way down everywhere.
But, you have to admire the way Fire rolled out
their rooms ONLY activating them WHEN receiving
approval from Health Canada - they did not rush -
people had to be hired and trained and their reputation
for quality is still in tact - Some of these people crying
for new mgmt sitting at home in their easy chairs probably
would have trouble operating a tv remote ....critics!
Share price is what it is FRUSTRATING!
hope to be bright enough to catch the low point
to jump back in!