Fire & Flower Holdings Corp FFLWF

RE:RE:Interesting Point

[Oldweed]

1sergedompierre wrote: oldweed ...margin is one thing that bothers me with FAF : 36 % is not high enough for a specialize retail store like FAF .. every quarter is something i watch and they are not going up IMO they need to be at least at 40 % it makes a lot of difference in the pursuit of a profitable company . SD

I can't speek to what specific margin is required for retail or what they should be at at this point of the growth stage as it's not in my wheelhouse, but what I can do is expect that the CFO of FAF does and that ACT has done the DD for a path to profitability. If anyone has the numbers crunched it will be ACT, they have the proven reputation to make very saavy aquisitions. Also I think Trevor has touched on Hyfire and the expectation that this software will help give them the tools and an advantage over the competition, of course having ACT in your corner will assure they won't make mistakes that I am sure many of the competition will. ACT wants in, they obviously have confidence in the management over at FAF as they would have looked at several other companies before deciding to go with FAF.  There are definately risks in a new industry but this venture has a path mapped out with an experienced partner, as the LP's that survive emerge in the next two years they will look to FAF to move more and more product for them as they can't gain market share all on the own. It will be the low cost producers that can deliver that will help lower prices for FAF as they build relationships that should increase margins. (think of Walmart's relationships with producers). Every LP will be very aware of the large established footprint ACT will eventually bring to the table and they will come knocking. Trevor has to execute to ACT's plan, I see no reason to doubt that he will based on past performance.