GREY:ALEAF - Post by User
Comment by
Toweringmarson Aug 15, 2019 9:11am
98 Views
Post# 30030913
RE:OH BOY WEED IS GETTING HAMMERED, IS TAKING US DOWN WITH IT?
RE:OH BOY WEED IS GETTING HAMMERED, IS TAKING US DOWN WITH IT?Based on the way the shorts play this I can certainly see us getting hammered today! Likely down into the 1.09's and around that level. Although, if the market was smarter, they'd see that the big boys are burning cash like madmen, and that perhaps some of these smaller players are a safer play for the interim. Sure scale is king in this industry, but if you cant manage your costs its going to burn you. Plus the write downs ACB is going to have to do will be insane! Its nice to have facilities all over the country, but logistics will cost you big time down the road, along with so many facility costs. I'd much rather have a few localized lower costs facilities then the overhead of 10+. We're well on the path to profitability, and the sooner these companies can do so, and translate that across the whole distribution chain the better they'll do. For example, many of the giant companies don't have tons of warehouses across the province, they generally have one or two at most and network between them. I think ALEF will come out strong the next few quarters and the S/P will reflect that.