Aleafia Health Inc ALEAF

RE:RE:RE:RE:"MEDICAL POT" NOT SELLING WELL IN EUROPE AND ....

[Oilspecs]

Toweringmars wrote:

2020EPIC wrote: Aleafia has a business plan and they are keeping themselves separate from all the others that are trying to control the market within a short timeframe.
Aleafia a very well thought out business plan which has proven to be incrementally profitable in their decisions. They only bite what they can chew. It's a great story and one can feel quite confident in this particular investment. 

Nail on the head with this one. Theres a reason why Benic eluded to the fact that they wont be a shrink to size kind of company where they wasted piles of investment capital to rush the market and make all the same mistakes everyone else is making. Its partly why we have such a clean balance sheet. Strategic moves like selling land for a profit whilst buying more to consolidate our operations. Or the gain we saw in the Aphria deal, which ultimately saved us sitting on inventory we didnt need at the time. The price we paid for the greenhouse vs. the tens of millions companies have spend building smaller facilities. I mean, imagine having invested in FSD Pharma or Canara in the hype of everything while they promoted giant indoor facilities, only to flash forward a year or two to where theres just no need for indoor grown product. Imagine having to pay the care and maintenance on heating 2/3rds of your overpriced facility while it sits empty? These are the beauties of second mover advantage. And like you said, sure we could have paid through our teeth to have edibles ready for when 2.0 happened, but to what end? Make a few million more, only to find out you have a giant inventory of finished goods and certain SKU's that you have to write down over two quarters just to sell? I think we're in a far more favourable position with the cash on hand and ability to chase the profit makers. Watching how desperate some of the undercapitalized companies are acting these days I can happily say I'm glad I parked my capital here.

"While others we're racing to scale, we were scaling to race."

I could not agree more.  Growing indoors is not profitable.  It is needed but at a small scale to fill certain orders.  The bulk of sales NEEDS to be from outdoor low cost input biomass.  Aleafia is the only company that understands this.  You need minimum 5x margins to be successful.  I find it funny how 95% of LP's are still growing indoors. 

AHLONG