Supreme Cannabis Company Inc. (The) T.FIRE

Conference Call

[Pedal2themetal7]

After digesting the financials and transcript of the conference call, I can honestly say I feel cautious optimism regarding Supreme.

I believe market share and profability are key components for 2021. If I remember correctly when at full capacity 7Acres will produce 31 or 33,000 kgs which translate to $155,000,000 to $165,000,000.

Obviously it will be a gradual climb before the relevant market share is captured and the company can distribute the above noted amounts, but they already have the completed facility, have an agressive partner in Humble & Fume so if they acheive the targeted exposure I believe they can reach their goals of positive EBITDA and gradual growth Q over Q. 

It is my opinion their main competotor is Aphria. The other big names are only relevant because of partnership with big money, not because of their business acumen.

There is a lot of work ahead, but to date I believe the current CEO has made some bold moves which I support, and if they can navigate the outstanding shares concern organically, which I've seen many times by other companies over the last 20 years this company could be on a positive trajectory by the end of 2021. 

Most companies are playing catch up, and everyone with experience with project work, catch up is expensive and a slow process, Supreme had to adjust and be nimble regarding required changes, but those changes did not affect the quality of their product, it slowed down distribution and market share.

The main thing I like about Supreme is the fact they have available land in Kincardine, and with their independent room concept they can gradually expand their facility and be cost effective while doing so.

Dilution is definitely a concern but if they can show profability, it will be a thing of the past. 

I might not be a technical investor, I keep my approach pretty basic, strong fundementals, quality product, good management team, niche and obviously profability.

I always attempt to be objective, and this company has made their fair share of mistakes, but all companies in this new industry have, and will continue to do so as they learn, but I can honestly say I finally see some positive moving forward.

We're still dealing with a penny stock in a volatile market and unstable global ecnomy, therefore anything can happen. IMHO

[RealistGhost21]

So If I understand you correctly they have only a fullcapacity of 33,000 Kgs and not 50,000Kg as they said before. So it is even worst than I could imagine because my analysis is based on a full capacity of 50,000 kgs and yet I can see only negative margin at the current sales prices. It is a factthat & Acres bet everything on quality and higher sales price of course everybody know that it did

[RealistGhost21]

After listening again to the conference call I noticed how carefull Beana was specialy about export to Isreal. For an realist and long term investor it means a lot in the current situation the comapgny is stock with. Here is why... Beana has the legal duty to act in the shareholder's interest so if Isreal is a good things for shareholders well she would have spoke about it and provide more

[vulcan123456789]

last I heard its 50 000kg plus I wouldnt forget to add blissco and Kraft which in a sense unlimited depending what they source out.. . I dont really discuss things with shorts I usually counter useless comments made but I make an exception here. cheers

[OptGreen]

This clown show continuing to whine and bark is a positive vulc, it the value wasn't there for FIRE they would be gone...and so would Beena. They were not listening or have read what she said about the company's state of affairs past, present and going forward. A failing company is not going to get favourable debt/credit refinancing if they are 'bankrupt' or soon to be, the

[puppymonkeybaby]

Its a good thing they are growing 40% less cannabis than promised... since they have negative margins. 

[johnale]

Their margins are pretty sweet - 64% cash margin on production last q.  Of the 17.778 mil prod cost - 12.1 was an impairment charge. Actual production cost was 5.678mil.  actually ops cost is 8.7mil (cash costs) excluding 1 time payments and amortization.  All in last q 14.378...  with production now being aligned to demand - there won't be any more increase in