Post by
red2000 on Sep 10, 2021 9:36am
quick update
From John on Yahoo Finance :
“We believe that the expansion of the Hifyre platform highlights FAF’s strategy as a digital-first retailer. In our view, the Company’s white-label dispensary offering provides an asset-light and scalable model that could be leveraged in Canada and the US, generating an additional high-margin revenue stream. We note that white-label websites will be enrolled in FAF’s Spark Perks membershipprogram, thus reinforcing Hifyre’s data capabilities in a positivefeedback loop. Moreover, we believe that, through these initiatives, FAF strengthens its competitive position in the cannabis digital retail space,” Kideckel wrote.
On the Canadian cannabis sector as a whole, Kideckel said retailers are now the most compelling investment opportunity among the available options.
“Our thesis is anchored on three points: (1) long runway for growth (industry growth and retail store expansion); (2) attractive valuation (undervalued relative to the market opportunity); and (3) large option-like upside from an expansion into the US (not fully priced in by the market). We highlight FAF as one of our top picks in the space due to its size, liquidity, and one of the leading positions in Canada,” Kideckel said.