Replies to post #101 on Emblem Corp. (fka EMMBF)

[OMMB]

I believe it's in line with what the wolf was looking for. I know cash + receivables are in line and I think the patient count is too. Probably a miss on revenues though as it's down QoQ. I would have been fine with no revenue movement. That said, I think they'll move it up next quarter and then the additional production output that will be harvested in November will add to Q4.

I might expect a dip tomorrow but long term we are good. If anything I would view a drop as a buying opportunity to average down.

[@WolfofWeedST]

Sure... I added this am

Hahahaha to people that can't read financials on $emmbf $emc.v pic.twitter.com/7vQBFDpzKN

— Jason Spatafora (@WolfOfWeedST) August 29, 2017

The cliff notes version is that they are spending a lot of money in the build out of their facilities as expected because of impending recreational market. They are also sitting on a lot of oil they can sell and are waiting on the approval to sell from health Canada. That will be a catalyst for sure. Another thing to point out is that a lot of the cannabis they grew was not reflected in these earnings and will be reflected next quarter. Cash wise they have $24m in reserve and Echelon Partners has a price target of $2.50 CAD ($2usd) for them which they downgraded from $4.5cad because of lower expected #'s. What's not being factored in in my opinion is the Biotech division led by John Stewart formerly ceo of Purdue Pharma (makers of OxyContin).

For me, I'm banking on Biotech and Stewart. He brought 11 other drugs to market and if he can do that here it would be a windfall for longs. The fact they grow weed is just a bonus, but $2 pps target would make this a 48% gainer. And as a long I'm looking at a 2018 trade horizon depending on strength, but with Biotech $5-$10 would not shock me. And compared to Canopy and aurora which have market caps between 800m to 1.3b I believe makes emblem 1 of the most undervalued LP's in Canada. I've increased my position from 89,500 to 100,500 in last week. But I suggest you do some more research on Stewart. Here's a good start-
http://www.bbc.com/news/amp/world-us-canada-38083737

Happy trading and good luck.