GREY:CHOOF - Post by User
Comment by
jerrio78on Jul 26, 2020 12:12pm
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Post# 31320750
RE:Faf
RE:Faf
In my opinion the issue here was that the company wanted to get as big as possible, as fast as possible and then boom Covid hit. All those leases and costs are still there and the float has ballooned as well. Sometimes a roll back helps to clean up the stock and they may come back stronger. If they continue this pattern this will have 500 million shares out and be stuck under a dime with no way to pay the overload of mounting bills. New companies need to operate lean and mean and try to grow organically as often as possible. Clustering news releases together to show how fast you can sign LOI's might attract new retail investors but what is the end game?
Not all the management is bad but I think sometimes you need to step back and take a new fresh aproach to things. Stop spending money and the insane dilution, trim the fat, abandon growth plans that cant immediately turn into cash flow. Step into a dispensary anywhere across the country right now, chances are you are the only one there except for the girl at the till. The online sales are strong for some coampanies but brick and mortar means high overhead. Even without Covid hitting these guys bet on the wrong growth strategy in my opinion. Best of luck here guys.