C21 Investments Inc C.CXXI

CXXI Share Price

[MuttleyKnows]

CXXI is now trading as less than 2X trailing earnings from ongoing operations.  There is a lot of volatility in the overall market as people are swinging between bullishness to bearishness.  However, the CXXI share price has gotten to a point where the shares are being given away.  Personally, I am looking to buy some more CXXI shares after the Fed rate announcement.  Better to get the next 75 bips move out of the way before adding to my position.  Note that I already have a lot of shares so it isn't a big deal telling people what I am going do.  I just see deep value at these levels.  However, I suggest you better have the ability to buy and hold if you also decide to buy as you really shouldn't trade this stock given the current wide spreads and trading volumes.  Also if you do buy like me then just put a bid in and wait for the sellers to come to you as the share price has been range bound between 30 and 40 cents for the past couple of months.  We are not at the bottom end of this range.

[DukeofEarl]

C21's next move will be to expand their retain footprint. 4,000 lbs of the 8,000 grown annually are going to the wholesale markets for pennies on the dollar. They know they need more dispensaries. This is a profitable company trading for pennies on the dollar relative to their present and future earning potential. P/E

[DukeofEarl]

Not sure why the last part of my post is peculiar.

[MuttleyKnows]

Yes the wholesale market for flower is not very good currently. Around 1,000 USD per pound. Still making a bit of money but better to process the flower into oils for vape cartridges until flower prices improve. 

[DukeofEarl]

I doubt flower prices will ever improve. CPG B2C beats B2B wholesale any day of the week. Storefronts and customer retention are key at this stage in the game. Flower is just a commodity.

[MuttleyKnows]

You are right that retail is better than wholesale in general but you need to have positive margins regardless. The reason I believe that wholesale prices will improve is Nevada is a regulated limited license state so it limits the number of competitors. Secondly wholesaler only businesses are in trouble in Nevada. Simply they can't just keep selling below 1000 USD or less and stay in business

[mercedesman]

Very comfortable with the Company and how it is being run. In this double bear market (for Cannabis and in the general markets) they will very likely be one of the survivors. Catalysts?: Still profitable, & positve cash flow. Only $ 4M left in debt.  Zombie competitors (wholesale and retail) will no doubt begin to fail under higher interst rates and lower flower prices. This will

[MuttleyKnows]

Agreed.  Debt free by Q1 2023.   Schumer has just indicated that legislation is coming soon.  There is one huge positive catalyst for the entire sector. Also, I would still like to see a share buyback programme as these prices.  The market cap is crazy low.  Think about this.  The company pays off about USD 500K of the Sonny debt per month which works out to

[yureja29]

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