Sunniva Inc SNNVF

Looks like Cathedral City running late?

[sunrize]

Going by the pics on the website, I expect more delays.

[Benedictus]

would not be surprising. I'm also wondering if we actually get the house of brands rollout this quarter or if this is likely pushed out as well. would be nice to get the brand rollout around the Q4 release. If the extraction facility is continuing to produce at full tilt some of these continued delays may not impact the sp terribly and it's likely to remain rangebound between the low to

[URLaughable3]

Do you have a link for the $7k/L ?  Seems like that sorta drop in price (40%), would cause a lil buzz.

[Benedictus]

it was referenced in the annual corporate update for LDS, a company on my watchlist and competitor to SNN. Hopefully the below link works and if not just go to www.lifestyledeliverysystems.com  click on Investors press releases and scroll to the Jan 14, 2019 corporate update.  https://static1.squarespace.com/static/5b5fb77f9772ae6ed9884719/t/5c4a1de22b6a28c73aa0d926/1548361187027/LDS

[sunrize]

@Benedictus: Thanks for the great find. This completely validates what I have said several times in the past - which is: the revenues are not the goal, but the profits are. A lot of folks make the mistake of revenues being the ultimate driver. In this case, falling prices for distillates in California (and a 42% drop at that just a year after rec legalization) is serious cause for concern. By the

[Benedictus]

@sunrize thanks for posting the excerpt, not sure why I didn't just do that...  agreed on the distinction between top and bottom line. A lot of folks are focused on the top line potential and just applying sales ratio metrics                                               

[NoMansGhost]

I think it's important to note that the quote from the LDS corporate update was referencing the time period of November 2018. As they go on to say, "The solution was received in December in the form of our State Cultivation and Nursery Licenses..." This means that Sunniva's current purchase orders of $11.5 million US in branded products occurred during/after this

[URLaughable3]

To further your point, SNN is boasting a 50% margin on the products coming out of the extraction facility while using someone else’s flower/trim as a feedstock.. this margin is obviously only going to go up as they start using their own product, and prices of distillate won’t be sinking lower imho. In essence, as you stated, the lower prices are baked in and SNN still churning out a great margin

[Bluechip2]

@URLaughable3- not to contradict but another possibility regarding the 50% margins, is that the 'strategic' relationship of flower supply is a near future part of the Sunniva team, hence the high margins without retail vertical. We shall see, but that is the most likely scenario that is unfolding IMO.

[weedstocks55]

This post has been removed in accordance with Community Policy

[Benedictus]

very concerning... distillate price hemorrhaging apparently has not stopped... about 15 to about 16.20 mins of the below interview from lds ceo confirms the situation. https://equity.guru/2019/03/27/equity-guru-podcast-lifestyle-delivery-systems-lds-c/