Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Funny that management team didn’t sell any stock knowing this was coming. Seems like it will be awhile before we see 50 cents again.
Your money will be unavailable for a period of time if you hodl these shares.
You think it’s worth a gamble at a dime Doc? Was thinking about trying my luck on a 100k shares….
So the Canadians will be able to trade, but the Americans no?
This was in today's announcement - though if SHWZ parted ways with this group prior is it because SHWZ noticed something awry, or is it that the reputation of Bolgers as an auditor was shot? Who knows. But this was noted at the end of the press release:
As a result of the delayed filing, Schwazze has sought from, and is in communication with, the Ontario Securities Commission (“OSC”) concerning the availability of a management cease trade order (“MCTO”) in respect of the missed deadline for the Quarterly Report ended March 31, 2024. If an MCTO is granted, it is expected that the general investing public will continue to be able to trade in the Company's listed common shares, however, the Company's Named Executive Officers will not be able to trade in the Company's common shares. The Company confirms it will comply with the provisions of the alternative information guidelines under National Policy 12-203 – Management Cease Trade Orders for so long as an MCTO remains in effect.
Honestly top brass had to know about the financials. They obviously did nothing nor said nothing. Now they want to sue them. Makes me wanna puke. The words audacity or gall come to mind. Maybe shareholders should sue the ones responsible! Dye has lost lall credibility with Me. His own PIGgy bank. I expect more crap to come. Stay tuned.
So if the financial are bogus will they (S.E.C.) restrict the sale of stock?? Any ideas?????
So the concerning piece is this:
the SEC issued an order to BF Borgers and its owner citing the deliberate and systemic failures to comply with public company accounting oversight board("PCAOB") standards in its audits and reviews, which were incorporated in more than 1,500 SEC filings from January 2021 through June 2023 and affected at least 75 percent of BF Borgers' 369 clients.
So the audits done prior in 2023 are probably not valid, which raises further doubt about the company's numbers. As well as judgement in leveraging an auditor with this level of problems.
Turning into a clown car. Rookie mistakes, not quality leadership. Thoroughly disgusted.
Cannibus sales for N.M. dropped from $51+ Mil in May to a tad over $48 Mil in June with 1,006 retail.
Nothing good happening in SHWZ land while awaiting pending lawsuit for stealing tips from low- level employees after $500k settlement in the 1st suit. Now basically being deleted from otc. Now we need to re-audit prior financials from a defunct accounting firm. Now we are going to sue them. Yet we claim having the best management ever. Honestly what's next? Asked about debt and Dye basically rolls his eyes and really answers nothing. Honestly what's next? Bankruptcy? Why is Dye co- CEO? Why do we need a co- CEO?
Is this the worst management ever or do we have a problem with someone who listens to no one and makes all decisions. Regardless of their expertise? I honestly think so.
How low do we go? Waiting to hear from IPS. With those rose colored glasses surely the skies are blue and not a cloud in the sky. Is a silver dime coming?
Pathetic to say the least. Guess no one was impressed with Dye. Debt is going to be a huge problem imo. Along with future dilution.
Usually expert market shares trade under .05. This will be a portfolio disaster.
They can come back from expert if they want to, but until then.... sheesh
OMG - Trading going dark on expert market? What a f'ing disaster!
Thanks - this is pivotal, wish there was more color on this at this stage.
"Scoffed at the notion of any default, technical nor otherwise. His investment too great.They are exploring how to best deal with notes coming due next year and exploring available options whether taken out of hide or by extension."
Not surprising that he has as low a view of safe baking being passed as I do.
Updated Public Dispensary Count:
— Cannalorian (@Cannalorian) June 26, 2024
- $TCNNF (FL 137th)
- $TCNNF (OH Acquired Harvest of Ohio)
- $TSNDF (MI 20th)
- $TSNDF (MD 5th)
- $VRNOF (FL 77th)
- $GTBIF (FL 18th)
- $SHWZ (NM 35th)
- $CBSTF (FL Divested)
- $CBSTF (VA 11th)
- $AAWH (PA 4th)
- $AYRWF (IL 3rd)
Lmk of any errors https://t.co/TCvoreZAHp pic.twitter.com/rNjuWzgsjP
That is welcome but expected news for the most part.
Meanwhile, I have continued to add a few more shares and reduced my average to $1.09.
Just concluded a 1x1 with JD via Noble. Thoughtful insights from a view at 50,000':
He sees Schedule 3 as a reality prior to the elections and sees a generation of free cash flow as a result of 280(e) going away with SG&A write-offs as any normal business may apply. Will create substantial roughly 4x increased cash flow if I read the chart correctly.
In turn, he does not foresee SAFE(R) banking as happening in Congress at present.
Scoffed at the notion of any default, technical nor otherwise. His investment too great.
They are exploring how to best deal with notes coming due next year and exploring available options whether taken out of hide or by extension.
From what he said, TW's absence is more temporary with a slowdown in current M&A activity and some well needed time with family. From the inference, I suspect TW will be back (never really left)
Although many competitor's stores in CO and NM are closing, they are evaluating each location as an individual opportunity as they present.
In NM, the rampant cheating (product brought into NM from out of State, namely CA, CO, and OK) is now a felony offense in NM and is resulting in a number of prosecutions and closures. The NM closure rate has exceeded the opening rate for competitor dispensaries/licenses and is likely to continue for some time.
They have a ton of competition in Albuquerque, but JD insists they will be the largest and best with greater selection and tiered pricing (which JD claims they now have a distinct advantage) and customer loyalty as their continued key drivers.
Their investment last Q which they took away some otherwise available cash is beginning to ramp with incremental revs and he foresees those rev increases continuing for the next 7-8 Q's (I believe this was CapEx for ERP/mfg/grow op improvements)
He stated he's in it for the longer game and, yes, this team plans to win.
Schwazze ( $SHWZ ) Chairman Justin Dye is scheduled to present at Noble Capital Markets Virtual Consumer / TMT Investor Conference, June 26-27. Registration is Free. https://t.co/YyQCt3vXNj@NobleFinancial pic.twitter.com/Rbz7lS5o0E
— channelchek (@channelchek) June 25, 2024
Sinking ship. Playbook not working. Management is jumping ship. With management holding lots of preferred the common shareholders are looking more n more like toast while the preferred shareholders take everything. To busy blowing their horns with a complete failure to operate the day/day operations.
Updated company presentation: https://ir.schwazze.com/static-files/8bb5e456-6f27-41a4-92d9-4a93d2c95b0b
If I may opine here. I am from another MJ board with the same exact problems - low share price for the pint-sized mj company and all hinging on when
the FED makes a move. Hopefully this will come back to a decent sp.
And elsewhere in NM: #35! A long ways from belly up it seems as some seemly opine here.
https://ir.schwazze.com/news-releases/news-release-details/schwazze-announces-grand-opening-its-35th-new-mexico-dispensary
Overview of CO cannabis market's ugly picture. A few interesting things, SHWZ is nowhere in the article. Did they just decline or are they so off the radar even in CO no journalists bother to knock on the door? Also suggests the regional strategy of SHWZ is hurting them when focused on states that are struggling. Maybe time to reconsider the regional push perhaps?
https://finance.yahoo.com/news/colorado-booming-weed-market-went-110000414.html
"Waiting on the Govt like all of us." I was thinking we might have to turn the lights out here... I suppose MJ legislation is not as high a priority as non-legislative posturing like trying to embarrass Fauci and failing miserably all these years later, or questioning college presidents about campus protests, or maybe another Hunter Biden hearing, or Mayorkas impeachment, or Twitter, Til Tok and China, or maybe another Benghazi hearing since who doesn't want to hear Hilary again, or cogent discussions about what constitutes a bleached blonde, bad built, beach body or not. We will be waiting a long time for the congressional clown car to go in any direction besides every direction and nowhere at once...
You wanted overhead reduction in multiple posts and want a PR too? How about a sticky gold star on your posts? Integrated supply chain VP also gone. Your criticisms no longer make that much economic common sense. I get it, you be pissed, Steven. I can only surmise they are looking to refi and waiting on the govt like all of us while making the best of what they have.
51.2 Mil sales for May. Dispensary count 1,007 in N M.
You would think management could start improving sales with less Dispensaries 8n N M.
You would think we see something from management on the departure of Todd.
Departure per the website's leadership page: Todd Williams, EVP, M&A and Real Estate. Portends a retail and wholesale focus within the existing footprint. Refi of debt and improve efficiency while maintaining or improving upon their 8% market share of CO and NM would seem to be the immediate focus.
Someone is unloading 161k shares traded.
Selling continues in rhe 40's and not one insider buy. Why? They have the playbook.
He makes a compelling argument. Besides culling management to reduce executive pay, or some surprise early rescheduling where the tax advantages would help the bottomline, this is the path SHWZ is on and others in this space. Since neither of those two previously mentioned scenarios will occur, that leaves restructuring their debt (under what would be less favorable terms than what could have occurred a few years ago), or someone buying them at cut rate prices to save them from default. Or selling more and more shares to raise cash at diminishing returns as they dilute. Or default. Out of all those possibilities, only a buyout would do anything to help shareholders, but of course, not as much as we'd hoped in the past. Am I missing any other options?
Lots of the negatives is self inflicted from arrogant management. Yes some are industry wide issues. Of notr, so far not 1 insider purchase since earnings at these Rock bottom pps. That alone is very telling. Get rid of Dye and that alone is a savings of $750k. per year alleviating the micromanagement which imo has negatively impacted the company. The executive pay is atrocious when comparing to the performance.
Straight talk purely managed as a private company with no real regard to shareholders.
To play the pop on the actual passing, yes. I agree. But it's a guess how long that bet will be tied up, and if drags on for a few months, the pop will be from below 50 at that point. Either way, as soon as it pops, sell, since the stock will immediately drift back down again imo.
I dunno, it recently popped up into the .80s on the rescheduling announcement, then fell back with the crowd. Still could be a good entry point in the .50s imo
It's just another announcement in a long line of announcements that haven't yet borne fruit. Any investor in the MJ space would be a fool to think it's a done deal, or that it will happen over the short term based on past history. Public comment will occur, more than likely the hand will be forced for a public hearing on this, the usual gaggle of idiotic geese will come out and push against this rescheduling. Dithering and deferring will occur. Political posturing for constituents around protecting them from the evils of drug culture will occur during an election year for those politicians who view that as a winning position in conservative states. I fully expect delays, a slog drawn out on this. Pot investors are now all from Missouri, show me it's actually done and we'll make a decision to buy then. And with the recent ER and SHWZ's near invisibility in the MJ space, even when/if rescheduling occurs, we'll lag the other companies in any pop that occurs. Nothing I heard on the earnings call addressed that point for shareholders, in fact, they stated the opposite, they are investing to do a slower fuller buildout of the company and its approach to serving customers in a manner that will over the short term limit earnings, margins, and forestall any meaningful stock appreciation. That's what I read between the lines. They are fully a long term investment now was the message, not short term.
Interesting how today's move to Schedule III announcement caused such a short term pop. I would think that would allow operators access to banking and remove IRS 280 restrictions. Should be great for the industry if this happens...
At this stage I'd be happy if someone bought them for $2 and each quarter that seems more and more like a pipe dream... Read the transcript of the call. More investment to build out a better customer experience, potentially good for the longterm but a short term hit to profitability while that occurs. Quoting numbers like 600+ cannabis stores in CO gets little pity from me, since the guy quoting that comes from a supermarket background and there are over 500 supermarkets in CO. So isn't that level of competition the playing field and one he's familiar with? Lower margin, higher operating costs, ramp up of stores seems slowing, and the need to sunset stores throws shade on their playbook and ability to ID and improve already well-performing stores. Wholesale, medical showing some promise. Clearly stated they are focusing on building the business and that will not lead to share growth in the short term.
Comparing Trulieve to schwazze is laughable…..I’ll leave it at that
My take is a little different even with sales at the retail level. Don't you all think with these pissed off employees and really the worst negative reviews ever these budtenders behind the counter are happy? The attitude would surely be obvious. Point being when they bought Starbuds these reviews were off the chart. You pay top dollar and overpaid for many of these dispensaries and now relocating. Again point taken the overall amount of dispensaries is not much different from 2 years ago. Exactly what happened to store loyalty after Shwz? You buy a dispensary and close it down for 3 months exactly what does the customer do? Wait 3 months for your meds? No Fahey start looking around. LOL first we renovate them and now 2 years later move them. Definitely not a formula for success imo. Until they stop looking for excuses this co. is doomed imo. Time to get that liaison for management and low level employee and work as a team!
So I believe earnings have been "baked into" the price now. If you look at $TCNNF - sporting a $11.92 price - and they lost $23,000,000.00 in the first quarter of 2024, I believe that management can turn this around. I've been predicting closing of underperforming locations for about a year now, and I believe they are finally going to do it. After years of rapid growth, it's time to focus on sustained profitability, and it appears they know this. So, 2.3 million in profits for the rest of the year with over $160 million in revenues, should be entirely possible for Schwazze. Here's a link to Trulieve's losses.. https://finance.yahoo.com/news/trulieve-cannabis-corp-tcnnf-q1-172244930.html
Q&A had good questions asked...the rest of the call was not exactly comforting. With the exception of the company expecting S3 news, the 34th NM store opened and new product factors expected over the next quarters, even their positive takeaways were industry negative -- like 'shakeout' continues. I think they said 72 stores closed. In addition, SHWZ is expecting negative growth as they are planning to close 3 underperforming stores in CO -- but will be reallocate the licenses. I guess my positive takeaway continues to be the company's ability to have Tier1 Gross Profit Margins while operating in two of the most competitive markets -- where CO is seeing $750/lbs of flower -- while Tier1s cry cost compression and competition in markets 3+ times that rate. So basically, if SHWZ can outlast, until the 'chasing limited markets/highest revenue generating' investor excitement wears off and the US industry playing field levels (sarcasm), that is when the company will start shine.
https://www.greenmarketreport.com/schwazze-has-the-blahs/
Yea, the financials came in about where I also expected them to be, and this has to be concerning...
Income (loss) from Operations: Loss of $2.7 million in Q1 2024, compared to income of $5.6 million in Q1 2023.
Net Loss: $16.1 million in Q1 2024, compared to net income of $1.7 million in Q1 2023.
We all expected the charges, and hopefully they will be significantly reduced in Q2 (the current quarter) burt the loss from operations will need to be fixed, as it will drain the cash reserves to continue those kinds of losses. I was playing in a golf tourney today, so I didn't listen to the conference call, probably listen to the replay tomorrow, but I hope they have a plan...
Good call on the (significant) loss! OUCH!
SG&A along with Salaries are almost $1M more than the gross profit!
Basic earnings loss per share (0.24)
Let's see how they address the issues today. I see more write - offs with low sales than q4.. Exactly why do we have 2 CEO'S? Really wasn't Dye going to promote and get the word put? With everything known the loss is going to be in excess of $15 mil. My hope is still in the new CEO.
I would like the earnings call to directly address what the company will do for shareholder value. Increasing the share count will not do that. Executive compensation has not achieved that. Excuses related to challenges in CO and NM do not do that. Twiddling thumbs while waiting, hoping, wishing rescheduling will occur soon won't do that. What is the plan to maximize and appreciate shareholder value in line with other companies in this space over recent months, all suffering similar challenges? SHWZ needs to provide a compelling reason for shareholders to stay and new ones to purchase the stock. And honestly, I'm at a loss as to what that could be except them saying "we think we hit the bottom." Not exactly a compelling argument. And SHWZ who? It would be nice if they made half an attempt at letting the world know they exist.
Followers
|
126
|
Posters
|
|
Posts (Today)
|
10
|
Posts (Total)
|
21261
|
Created
|
01/10/16
|
Type
|
Free
|
Moderators StevenRisk Drugdoctor damAcon1 |
Instagram: https://www.instagram.com/schwazze/
Facebook: https://www.facebook.com/Schwazze/
Meet the "Steve Jobs of Cannabis" and Schwazze's Chief Cultivation Officer, Josh Haupt:
https://www.youtube.com/watch?v=s36OIBT4XiQ&t=1s
Star Buds is one of the Most Recognized and Successful Retail Cannabis Operators in North America
Company Projects Pro Forma Revenue for Schwazze and its Two Acquisitions (Mesa Organics and Star Buds) of $95 Million in 2020
Company Expects to Be Cash Flow Positive Beginning in January 2021
Company Anticipates Acquiring Remaining Seven Star Buds Retail Dispensaries in Colorado during the First Quarter 2021
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |