RE:Sideways trading...... why? A crazy ideaCharles1 wrote: Ok. At first I thought the consolidation was healthy, and I mostly still feel that way. Fortunate for NRTH to go sideways while the sector pulled back. Perhaps I'm crazy but hear me out, is the price being held within a tight range for a reason? Easy to do so on a stock with minor volume for the most part.
1. Pierre has been buying heavily, somewhere in the name of 800,000+ shares over the last two months
2. Cam visits the farm
3. Cam knows Jeanette from her TGOD days when Aurora invested in TGOD (consider it an investment in her and her husband Scott)
4. Aurora ditches TGOD - most speculation here is that cash is needed by Aurora. Fine
5. TGOD's puzzle piece to Aurora was the organic grow, which they got at a discount from TGOD under the investment MSA
6. Aurora has Whistler but it is relatively small production
With TGOD out, With fresh CASH on the books (+ a shelf base prospectus previously filed) what do they do?
Am I nuts to think an ACB buyout is in the works for NRTH and the share price is being kept in a tight range while a deal is worked out behind the scenes?
The price may be manipulated , or perhaps investors have realized hype is over , time for solid results on financials. A forward guidance here as done by other cannabis companies especially at this point would be ideal to quell investors uneasiness. Sideways trading as opposed to extreme volatility is better received - actual financials will rightfully dictate stock price. Stopping robbery of retail investors in this industry and showing even dividends would be an incredible accomplishment.
The repeated buying of other companies by ACB some at quite a premium , left many scratching their heads. To be the biggest , largest capacity production globally a good idea. This unfortunately came at the price of diluting shareholders which in the long run may pay , given their global presence and first mover advantage in those areas. At the time, big banks in Canada were not allowed to partake in anything cannabis.
TGOD and organic grow, ACB able to purchase up to 20% of TGOD`s output at wholesale prices = a good move at the time- Now, we have over 100 Health Canada licenses administered, and much capacity which at this point , is overcapacity. Something that was inevitable . When overcapacity occurs, retail prices are driven down. Those with the cheapest prices and quality product will survive . Operating costs , aka cash burn is a real issue. At NRTH , a buyout is probably unlikely as this business model has purported to be able to produce at about 25 cents per gram , vs $1 plus per gram at other operations. Those other operations focussed on greenhouses and did not take into account the potential of outdoor growth. Would not be surprised to see some of those greenhouses written down , and or sold to actual plant and vegetable producers in favor of the lesser costs associated with outdoor growth. Cam`s visit with jar in hand , probably picked a few buds to have them tested in comparison to the more expensive indoor growth.ACB does not need more capacity as the industry is already deemed to be in an over capacity state. What they may need , is a cheaper approach to production , thus the interest.
Whistler was a good move by ACB. When purchased, their unique branded strains with organic label almost at a comparable micro brewery operation as an analogy, were well recognized in the Cayman Islands and Australia , selling easily with no qualms on paying up to $13 per gram- the marketing and branding was very well received - that is what attracted ACB to Whistler. Note: These unique strains are now owned by ACB and can be mass produced at other locations - under the guise of a Quaint town , crystal clear melt water from the Rockies nurturing this organic crop- much like Kokanee beer, brewed with melt water from the Rockies. The idea was right. To sum it up, ACB no longer required the ability to purchase organic product from TGOD , as they very much have their own ability to produce organic labeled product. The question that arises from this - is ACB could have sold at a higher price point - why didn`t they , even though they nearly doubled their investment selling at $3.
A question I would like to pose to NRTH management is ; living in this area of Good Farm , I see crops alternating from corn one year , to clover the next to rejuvinate the soil for the following corn crop. Does the Good farm need to plant a different product alternating years to maintain a proper soil composition conducive to marijuana growth ? And as another poster mentioned why has NRTH not given investors any indication as to the success of the crop , or yield ?As an investor , we have the right to hold our investment accountable. I believe in this business model but would appreciate a reassurance . How about You?
GLTA
VM