Post by
run33 on Jul 18, 2018 1:47pm
Heres's how I am playing this. A REAL post.
Ignore all the garbage on this board and read this.
These guys have $120M cash in the bank, and according to the Winter's prospectus, only requires $30M to complete the build up to 25,000KG.
So other than G&A, where's the other $90M going?
I believe they are pivoting - selling off the asset that would allow further growing expansion, and renaming the company NewStrike Brands.
Pivoting into what? I'm not sure exactly, but it seems to me like these guys care more about making money off the paper than they do a profitable company - BOTH major PP's were short-forms that were completed by shorting the stock and covering with the placement.
They want to make money off another major run in the stock, but with the market cap already hovering around $550M at a buck, where would they go from there?
So you announce a share rollback, this achieves the goal of lopping the share price in half - or in this case 60%. This is now a great place to now run the stock from, there is much more runway.
Now our friends need to get papered up for the run - how's that going to be achieved? Watch for them to acquire a couple of other smaller companies in order to load their buddies up with stock. This will happen following the rollback, which I think they will go 5:1.
Once we head into Fall, I think this easily does $1.00-$1.50 (pre-rollback). These guys have some firepower - they cranked it to $3.30 last Winter (a $1.3B cap!!) with only $13M in cash in the bank at the time. IMPRESSIVE.
So, do you buy the common stock here? You could. A double sounds boring though doesn't it?
I think the way to play this is the 'A' series warrants. HIP.WT.A (*NOT* HIP.WT)
Why? You get *5 YEARS* time value, with a strike price of only $1.00 - for the price of a dime, right here, right now. These things should be trading at $.20+ right now, today - but they're not. Use a warrant calculator to see what I mean.
If the common stock does $1-$1.50 (pre rollback) then you are looking at $.50-$1.00 for the 'A' warrants.
Doesn't a 10x bagger sound so much more appealing?
If I owned any common stock in this, I'd be ditching them for those 'A" warrants right now.
What happens if the stock goes NOWHERE and is still $.43 cents after the winter?
Well, because of the 5 year time on the warrants, little to no value is lost.
What you want in a trade, is a worthy RISK vs. REWARD. If you believe in the marijuana sector moving this winter, I cannot find a better trade. But if you find one, let me know.
GOOD LUCK TO ALL.
Full Disclosure : I own the 'A' warrants. And no, I won't be flipping for a penny.
Comment by
tsxbull on Jul 18, 2018 2:53pm
Interesting post indeed, thanks for sharing. @run33 - Where do you go to find the details/restrictions/rights, etc.. regarding warrants such as HIP.WT.A?? Thx and GLTA!
Comment by
donkey42 on Jul 18, 2018 3:15pm
HIP is the most oversold LP in the sector and its due for a bounce, idc how many times i have to avg down come october this will be doubling easy
Comment by
FatOfTheLand on Jul 18, 2018 3:19pm
Check july 3rd filing on SEDAR
Comment by
Angelized on Jul 18, 2018 6:06pm
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Comment by
Angelized on Jul 18, 2018 9:09pm
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Angelized on Jul 18, 2018 9:13pm
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Comment by
run33 on Jul 19, 2018 3:36am
If that's what you believe, then you need to find yourself a financial advisor, or buy GICs.
Comment by
run33 on Jul 19, 2018 3:34am
Those are the the PP units. You are confused. Let me take a piece of your own quote. " Each Warrant is exercisable to acquire one Common Share at an exercise price of $1.00 per share" Wow... does ANYONE on this board have a clue? I guess there's no point in being here.
Comment by
Angelized on Jul 19, 2018 7:50am
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Comment by
TheInsider on Jul 19, 2018 10:02am
NOW you've got it right.... congrats.
Comment by
flyboy27 on Jul 18, 2018 9:57pm
On the Canadian warrant site I see the HIP.WTA .at 1 -1 ratio that is what it says currently.
Comment by
TruthAboutHip on Jul 18, 2018 10:09pm
Yeah you are right it seems to say that on the Canadian Warrant site but that means IR was wrong again ? I have no idea at this point what information I have received from them was actually correct. Is this a lawful way to run a publicly traded company ? I hardly think so.
Comment by
run33 on Jul 19, 2018 3:46am
PLEASE tell me you are kidding me. I can't even believe I'm having this discussion. THAT is what IR is telling people???? And yes, that information is completely wrong. On the other hand, you people should know this stuff. This is very, very basic chit, and if you don't understand it, you shouldn't be here.
Comment by
Fattty33 on Jul 19, 2018 8:31am
Truth, do you have a screenshot or copy of the info you received from IR?
Comment by
11runner11 on Jul 19, 2018 8:53am
Wow you funny Trip.... can I call you Trip. TRuthabouthIP makes me throw up in my mouth....lmao. Must suck being one of the last few shorts holding the bag. How long did it take you to write that email up. You should have taken more time...you made my day
Comment by
TruthAboutHip on Jul 19, 2018 8:58am
I am not really worried in the about what you think of me, but you should be worried about insinuating that I have done anything fraudulent. I have the e-mail in question and will use it as proof in any litigation that may be necessary.
Comment by
11runner11 on Jul 19, 2018 9:12am
Your right Trip... I’m sorry. Please forgive me. I will be acting on the information you have posted. Thank you for hard DD. I know I should do it myself but now I don’t have too. Thank you for caring about me.... Oh Wait.... DO YOUR OWN DD..... DON’T BASE ANYTHING ON INFO FROM HERE WITHOUT CONFIRMING IT YOURSELF...... GL
Comment by
OSKARtheRED on Jul 19, 2018 9:24am
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Comment by
OSKARtheRED on Jul 19, 2018 9:51am
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