Vibe Growth Corp C.VIBE

2nd Quarter

[TheProphetElijah]

Nice results as usual, no reason this shouldn't be 100M+ mkt cap, with or without fed legalization.

"We are delighted to report another strong quarter and anticipate significantly more record Vibe high-THC cultivation output coming through our stores," stated Vibe CEO, Mark Waldron. "Our strong cash position has given us the ability to significantly ramp our revenues and margins with our California cultivation and retail expansion strategy. Closing on a 10 acre F40 zoned agricultural land parcel in Monterey, California in August, and the addition of our Sacramento indoor cultivation capacity - which is currently well underway - plus the opening of two new dispensaries in Ukiah and Salinas within the next eight weeks, puts Vibe in a terrific competitive position."

[davgro]

Yeah the market response is telling. No change in share price on a massive volume of 19K shares. Maybe Beacon Securities should raise their target price from CAD $2.60 to at least $3.50 based on these stellar results. Vibe shares are dead money for the forseeable future.  Keep pumping.  

[lscfa]

The recent cultivation purchase ($8.4 million) is suppose to provide a 12 month return of capital.   So $8.4 million in gross profit added to existing $10 gross profit is 84% growth.    

[raptor0]

Pretty decent quarterly report, right in line with their current growth pattern. I guess cultivation is the wild card here. I am very skeptical that they can achieve a 100% return on capital in a year, but we will see. That purchase depletes a good chunk of their cash. I suppose that the saving grace is that the dispensaries will continue to prop the company up until the cultivation assets

[TheProphetElijah]

Beacon reiterates it's $2.60 target: https://www.cantechletter.com/2021/09/420-per-cent-return-projected-for-vibe-growth-says-beacon/#

[lscfa]

Actual ebitda for H1 2021 was $1.82 million. Beacon forecasting ebitda of $6.1 million in 2021 and $17.3 million in 2022.  

[raptor0]

The analyst's letter is an interesting read. He seems very positive on the company however the obvious conflict of interest here (he works for Beacon, the underwriter of the private placement deal) causes me to take his analysis with a very large grain of salt. The most interesting thing that I took from the letter was that Stockton, Sacramento and Redding account for 90% of revenues. This

[CashRus]

Great info. Raptor, thanks.