Inner Spirit Holdings Ltd. INSHF

Need more fully owned storefronts

[Sledd66]

hey guys, I started a small position in spiritleaf this week. I love that they are aggressively pursuing franchises across the country. 100 storefronts in the making is a big number for a 20 cent stock. My only concern is the April 8th news article about Kingston making 230k in a week and spiritleaf only getting 5% of this. Its beautiful for making profits without the overhead and expenses of running a storefront, but my concern is if all 100 shops were 5% commission, suppose all 100 stores averaged 1mil revenue a month, spiritleaf would only claim 5mil a month for 100 stores. 5 mil a month is great when theres no major expenses to the bottom line, but it will actually take 100 franchises to achieve those numbers. Franchises in my opinion is beautiful gravy on the bottom line, but I really want to see this company open up many solely owned shops as well to really move this stock. I like that tilray and newstrike (hexo) are both backing this company, very nice boost of confidence from the big boys. And the hightimes support is a bonus too for recognition. The sooner those 100 planned franchises can get there licenses and open the doors, the better for spiritleaf. Planet 13 did 5 mil sales in march (1 month) and there stock is north of 3 dollars on an all eggs in one basket investment being only 1 storefront. If 5mil a month can value a share over 3 bucks for 1 storefront, imagine the potential for spiritleaf when they generate the same over 100 franchises (100 stores = much less risk of business hiccups). Bottom line for my interest is it will be lower and slower revenue growth at first due to only 5% take, but she will grow into a very safe and lucrative business model once all the light switches get turned on. I'm still doing some DD on these guys, but so far the price is a steal in my opinion. Glta

[toohip]

if you check there web site it states they will open there own stores , i think 12 even shows the time frame ..... at curent holding this stock is suposed to be $3,00 so we r getting a steal at this price 

[BuddyGuyMan]

Here's some quick math for you assuming each of the 100 franchises does avg $1 mil per month sales. $1,000,000 per month x 12 months x 100 stores = $1.2 BILLION gross sales $1.2 BILLION x 5% royalty for ISH = $60 MILLION PROFIT PLUS $25,000 franchise fee x 100 = $2.5 MILLION PROFIT So even if the stock were to trade at a very modest PE of 12X, that's a $750m market cap, or $3.94

[sotypical]

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[JaCkSnap]

The Kingston ON Spirit Leaf did nearly 1/4 million in a few days. But that location is definately a tier 1 location.

[MJtradercash]

I own 90k, however there is no way they will sell $1 mil month. More likely $2-3mil/year per store. Long term hold, may be the paying out dividends eventually, 5-6 years out.

[Sledd66]

yes the 1 mil a month figure was from me just rounding up the Kingston weekly estimate and was all hypothetical on a best case senerio. 5mil a month from 100 stores in perfect senerio based on 5%. Obviously it will be much less which is why I was originally saying the franchise Avenue is better off as icing on the cake. The solely owned stores is what is needed and will push the bottom line up to

[Chrysanthalas]

Franchise revenue is pretty amazing which is why companies opt to do it.  They help a team set up each store for some upfront costs and then benefit from that 5% until end of days.  That being said, 5 million a month isn’t realistic. 160,000 a month in sales is the honest to god eventual run rate for cannabis store revenues once things have calmed down and there is competition in the

[sotypical]

This post has been removed in accordance with Community Policy

[toohip]

thats to bad for them ISH is up 700k in 1 month from 1 store ,loooool  BUY BUY BUY while its still cheap 

[RetiringYoung]

Do they get 5-6% of that or $35,000?

[toohip]

they get 6%  of the franzise .when they start opening 10  off there own shops thats  icing on the cake