Rotaluceps wrote: Oldweed wrote: Rotaluceps wrote: 1sergedompierre wrote: IMHO you are wrong as it is all the cannabis stock that are down ...all of them and it is also ,in case you did not see and feel it , the whole stock market has plunge ! nothing to do with FAF future ..
The reason is? They are all in the same boat facing too much competition. Take any cannabis companies and put their financials result on a quarterly basis. Click
financials above and put the
income statement on a quarterly basis. Stalling or lower revenues showed there are too much competition. The small increase in revenue of the others is not enough for realistic expansion. Although I take into consideration the others financials data, I don't even need them to see that the cannabis industry is plague with too many competitors since they all have problems growing good revenue. They don't need EBITDA or small profit but good growing profit which means very good revenues in the first place. Unless the population double, it will take time to sort out a good one.
FAF
Jan 22 Oct 21 Jul 21 Apr 21 Jan 21
Total Revenue 42.70 45.41 43.31 44.08 43.22
Do the same for other cannabis companies. They don't need EBITDA but big fat profit to expand after all this time since the cannabis is selling very well. When the FAF revenue is lower than 4 quarter's ago, big problem.
So if FAF were to open 15,000 store fronts in a market 10x the size would it help? How many of the competitors you refer to would have the ability to do that and as quickly for pennies that FAF will...if at all. Right now every LP and retail are fighting for a crowded small market, and most will fail for sure. I would imagine the Hyfire software and the partnership FAF has in the US data will serve ATD well in knowing what products to put on the very targeted and valuble shelf space they will open up in every Circle K. DYOD and follow the money if you can.
Attention, I am not against FAF but realistic.. Stop going for the best scenario. The competition is well established in the US. FAF can't do it alone, it needs CT. CT don't need FAF. Since FAF will not be profitable before a long time, they will need the money of CT that will increase its %, lowering the % of the investors. 15,000? I assume it is the number of locations. Do you really think there will be 15,000 cannabis store owned by CT, (FAF will be out but they might keep the name)?
The convenience stores in the US can't sell cannabis products, the same in Canada. They would open cannabis stores near their location. How many would be adjacent? I don't know but if you look at a CT gas station with a store, there is not a lot of place left. many think they will sell THC products in their convenience store, no way. Convenience stores will never sell THC products because the law will never approve. Children could be with their parent when going in the store.
The process will take years. I assume they would also buy the competitors if the price is good as they do right now. They will not dilapidate their money in a sector that don't generate good revenue by adding more competition. At the end, CT will do it because they have experience and is a very mature company unlike all these cannabis companies where the insiders are draining money.
Also there are people who see CT or Constellation as friendly. Sometime when we read a statement, they will praise each others. They are businesses and they will do what they have to do for their businesses.
Put you at the place of CT. If you could increase your % shares at a lower price and take control of FAF, would you do it? I don't even mean CT to be agressive about it.
CT to FAF.... Hey listen my little broken friend, we will stay together while I will use my money to expand in the US,
no way. it is obvious they will buy the parts of FAF, would you do it? It is good to take the place of a CEO. At the end CT will do it and unlike what people think, the margin will not be spectacular facing the competition. People forget about the numerous private companies. How many in the US?
15,000 cannabis stores for CT? Keep this date, we will do the count in a few years.