Post by
MuttleyKnows on Jul 03, 2024 10:08pm
New Reno Location
Well folks the new Reno location was opened to last week to line ups going out the door. It was a good start and I expect good things from this location. It is located in a good location and close to a freeway offramp. This is the exact reason why Walmart literally has a store located next door.
Thus, I expect the ongoing performance of this new store is going to well exceed the average Nevada industry wide store topline sales of USD7 million.
The additional benefit is the company is now spreading its fixed costs to another store. That means this new store is going to have a huge disproportional impact to increasing EBITDA / free cashflow. Combined with upcoming re-scheduling / 280E change, C21 is going to printing cash. The convertible bond can literally be re-paid in less than 1 year.
On longer term strategic view, C21 must be aiming to expand to Vegas if they can find the right dance partner. If they can't find the right acquisition target then they will just build up a healthy bank balance. Anyone interested in share buybacks? At these stock prices, it would be a great ROE play.