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Anyone going to annual meeting? At this point probably not much reason. Looks to be a hurry up wait as both N.M. N CO. are really competitive. Anyone see any reason to add shares?
$SHWZ $MRMD $GTBIF $AAWH $TCNNF pic.twitter.com/zmsMTpaJwr
— Aj Daas (@H_Aj_Daas) May 18, 2023
This statement is very true i am guessing 1.5 more years of rollercoaster feels like the bottom?
Democrat politicians are the dumbest people on the planet. If you legalize use and not sales, you bring in the black market, you collect no tax and children have access
— MJ Stock Trader (@stock_mj) May 19, 2023
"Delaware consumers may have to wait up to two years before they can buy legal weed"https://t.co/j9utN5D9d5
Nice 30k bid at $1.04. Makes you wonder who is the buyer while someone continues to sell.
Agree. Going to be a bloodbath in N.M.im banking on SHWZ to hold their own with higher Whole sales kicking in. Definitely not a time to buy unless you have atleast 6-12 months. Currentlyartificial intelligence is white hot once again.
I think it's gonna be a looooooooong summer for cannabis stocks in general. Buckle in kids.
Could some explain PIK? I don't really have a crystal clear understanding. I believe the 9% cash is paid and the 4% PIK is paid in additional bonds. What am I missing?
It's like every tier 2 and tier 3 reported today. I dont understand how Twitter seems so bullish. I have seen the reports. All these companies posting positive PRs spins when in reality they arent even close to operational profitability. In addition, their margins are terrible...and they operate in limited licensed states. Sad when you find yourself rooting for no federal movement hoping that as a result most of these companies just disappear...and with that, the (pumper) advisor/analysts.
With almost 1,000 dispensaries in N.M. the small underfunded will dye(die) quickly. Margins are going to drop quickly unless totally integrated with grow and manufacturing. I believe we will be somewhat insulated with the primary losers being stand alone dispensaries at the mercy of the large chains that buy at discounts. Probably wrong. Of course imo.
Personally, I'd like to see Everest make their earnout, it means the deal was exceptional...but after looking at this set of numbers I have my doubts as most of you probably do as well.
Tough set of comps MoM. No doubt. 4/20 included.
This is a longer battle with tighter margins in a State SHWZ will ultimately dominate. I have a feeling that our lesser, but a newer multiplicand of competition --which lacks an ability to scale, ultimately won't fair as well as these wild west numbers will correct and favor those with a meaningful brand loyalty/footprint as the economy sours or stays not so great stagnant.
The ability of making the best of what they have and bringing a couple of Star*Buds to NM and the same of a R. Greenleaf and/or an Everest to CO as in a cross-market scenario is what success may ultimately look like. Albertsons case in point? A case of one must try that 'cause it's from elsewhere and great. SHWZ has an advantage as they can rebrand with a degree of acceptable cannibalism as required and create a mix as best makes a difference whereas the competition has no such ability as standalone, and my best guess is the standalones are making this pinch felt at present because of promotions and their very much new and exciting factor. Wait for it...if you think things are tough all over, Ha!
With the count going up the way it did through out the month numbers will probably worse for this month. Hopefully wholesale makes up the difference.
Sorry IPS. I took the new presentation and updated the intro however after putting in about an hour iHub failed when trying to save my updates.
Where there is smoke...
https://www.greenmarketreport.com/schwazze-buys-smokeys-dispensaries-for-7-5-million/
https://www.newswire.ca/news-releases/multi-state-cannabis-operator-schwazze-acquires-two-retail-dispensaries-from-smokey-s-cannabis-company-838804878.html
Comparative Company Insights Scores as the sector goes sort of interesting...Overall score is calculated based on proprietary scores based on sector averages in key company indicators: fair value, dividends, innovation, hiring, and insider sentiment. Note: if you don't see a key indicator sub score below it is because this company's data is not currently available for that area. Yahoo numbers out of 100...$SHWZ 91 overall, 83 hiring versus sector averages of 50 in each category: https://finance.yahoo.com/quote/SHWZ/company-insights?p=SHWZ
I can likely get something up by mid-week. Will let them finish the upgrade first.
Funny, I hide the into and forget about it until someone comments.
Mods request for board and fyi, an updated investor deck.
Hey Doc, (or for the current Moderators here) my post as pinned is pretty stale these days as we have quite a few changes from the AM 2-years ago....Please unpin. May be time to consider some new pics/slides here on Ihub? Thanks, IPS.
Most of the corporate side of the rest of website taken offline as in the "404 error code not found" the usual being reworked jargon.
Investor deck now labeled as of May 23: https://ir.schwazze.com/static-files/a6b813ad-1c03-4a7b-be60-e3bf7b789546
Of dogs, ponies, and potted plants --another favorable rollup:
$MSOS $MJUS $PSDN $GTBIF $MRMD $AAWH $TCNNF $VRNOF $SHWZ $TRSSF $JUSHF pic.twitter.com/902UZJuGJD
— Aj Daas (@H_Aj_Daas) May 12, 2023
closed on Smokeys two dispensaries
https://ir.schwazze.com/news-releases/news-release-details/multi-state-cannabis-operator-schwazze-acquires-two-retail
Marijuana sector in chaos. Huge debts and interest payments and then govt getting over half of profits in taxes, almost nothing left over for investors, so they are fleeing the sector.
Doc, when you buy a house you pay interest…..all is not peaches and cream but you live in the house pay your interest and eventually sell it for more than you paid….you have to ask yourself why does Schwazze keep buying businesses and why are people selling for some cash and a bunch of stock…..I’d think they might actually believe this company know what they are doing….just my guess of course…..good luck
I did not write this. Someone else did.
While Schwazze's calculation for Free Cash Flows is accurate (really unlevered free cash flows is specifically what they are calculating) and was stated at $2.7MM for the quarter, there are better versions of that calculation which provide a clearer picture of the cash flow generating power of the company:
Let's examine two of the fixes:
1. Working Capital
Their method does not backout the changes in working capital and, in this case, over penalizes the free cash flow figures by treating the buildup of inventories, prepaids, and accounts payable as recurring cash flow items. Q1'23 is the period of the year where Schwazze builds up inventory for Q2 and Q3. For understanding the standalone business, one would argue that these should be backed out and treat inventory as stabilized so as to not create noise around the cash flows.
2. CapEx
Schwazze deducts for all of CapEx (i.e., Purchases of Fixed Assets) vs. just the Maintenance Capex. Since a majority of the "Purchase of Fixed Assets" is associated with Acquisitions and Buildouts and new developments this grossly overestimates the Maintenance CapEx needed on a recurring basis.
When you adjust for both of these items you will see that Schwazze generated well over $10MM in true Unlevered Free Cash Flow this quarter (in what is generally considered the weakest quarter of the year).
As we enter into Q3, the working capital situation will reverse as inventory and prepaid asset levels will come down and this will free up cash to be used in more acquisitions in Q4.
Overall, I expect true unlevered free cash flow levels (adjusting for and stripping out changes in working capital and only deducting maintenance CapEx) for the year to exceed $45MM, with Levered Free Cash Flows (after deducting for the cash portion of interest expense) to come in around $20MM.
This leads to a double-digit free cash flow yield (regardless of whether you calculate it on a levered or unlevered basis with the convertible debt).
When I saw their margins increase...it drives me nuts that they dont get any of the lime light. I mean:
"Gross profit margin of 58%
Adjusted EBITDA of $14.5 million was 36.3% of revenue"
This is on Colorado and New Mexico...two locations that are suffering cost compression worse than almost EVERYWHERE ELSE! "Oh...<<<insert Top MSO here>>> is "the best" ...like really? Their game plan is specific to limited licensed markets where they can be a first mover to take advantage of the lack of competition and higher flower prices. Then they have falling, or stagnant, margins while complaining about cost compression. LIKE FOR REAL!?!? Your states of operation have flower prices 2x-5x the price of Colorado or New Mexico....and the best you can pull is 50% profit margin and around 30% aEBITDA? How are they going to 'maintain' similar margins if the end result of every state market flower price ultimately settles around the current price of Colorado?
Meanwhile Analyst and Individual Investors keep talking about how operators need to slow cap ex and focus on efficiencies...wanting operators to prove themselves through their efficiency...when they fail to take into consideration the landscape of operation. SHWZ is literally operating in the foxhole pulling margins higher than the other companies, while also growing -- and doing so accretively (not this "immediately accretive to the bottom line", but 2 years later still writing off goodwill -- Trulieve). The analyst and investors in this space apparently don't truly appreciate/recognize 'operator efficiency'.
Today's morning headline:
https://www.benzinga.com/markets/cannabis/23/05/32338316/schwazze-q1-fy23-revenue-grows-26-yoy-what-about-profit
Medicine Man Technologies Inc. operating as Schwazze,
SHWZ
SHWZ
released financial results for the first quarter 2023, revealing revenue of $40 million, an increase of 26% compared to $31.8 million in Q1 2022.
Q1 2023 Financial Highlights
Gross profit of $23.0 million, an increase of 111% compared to $10.9 million in Q1 2022
Gross profit margin of 58% compared to 34% in Q1 2022
Adjusted EBITDA of $14.5 million was 36.3% of revenue, compared to $7.9 million and 24.7% of revenue for Q1 2022
Net income of $1.7 million, an increase of $28.5 million compared to net loss of $26.8 million in Q1 2022
Cash and cash equivalents at the end of the period were $35.2 million.
"To date, we have opened, acquired, or announced pending acquisitions of 60 dispensaries with six operating cultivations and three manufacturing facilities across Colorado and New Mexico," stated Justin Dye, CEO of Schwazze. "We believe our growing variety of retail brands resonate strongly with our cannabis customers, and the team is well-positioned to play offense as we continue to strengthen our position for shareholders." (emphasis added)
All adjusted anything aside, from what I've read in the 10Q they lost ($0.01) basic and ($0.06) on a fully diluted basis for the Quarter. The ramp will be interesting for Q3 as it will be the first report of all 60+ operating together for the Everest, and CO additions.
Not so bullish post on Twitter. Posting for transparency:
Team at schwazze just out here making up new definitions for free cash flow by removing interest expense from the equation... Good quarter but lets be real. https://t.co/llhLxYlAJ9 pic.twitter.com/k7ptsKavnT
— CannaVestments (@CannaVestments) May 11, 2023
All was not peaches and cream - Interest expense way up, and preferred stock dividends way up.
Interest expense, net (7,745,854) vs (7,302,254)
Also the diluted outstanding doubled from a year ago... Even with 8 million dollars in "unrealized gains" on derivative liabilities, they barely eeked out a profit in over 40 million in revenue, and actually reported a (.01/share) loss because of the preferred stock dividends...
It was a very solid quarterly report, I am quite pleased with it. Unfortunately I missed the conference.
All the best,
Knife
Yes, very pleasantly surprised and pleased. solid report. shows a steady hand on the wheel with all the issues in the sea of pot right now.
Anyone listen to conference call? Interested on questions asked.
I’m guilty because I did not post today, but we should have generated more posts in here from today’s quarterly report. It was perfect.
Kudos on a solid 10Q report considering a difficult macro and especially lackluster sector Q1, 2023! They are growing and keeping up despite the bulk of the sector's mockingbird focused canna related expert naysayers.
One to keep!
Now if they will update the investor deck and get out to some conferences. Showing the flag is still important --and very much part of the demonstrating NOW why this is a one of the best companies in the sector.
Agreed. Retail revenue down a tick, wholesale up a tick. All-in-all essentially flat...but let's say 'maintained'...which in itself is impressive because Q4 has Christmas sales. Really I am impressed with margins -- no slip there. Small gain on the gross profit margin (0.003%); larger gain on adjusted EBITDA as a percentage of revenue (+3.2% QoQ). Add in the icing on the cake of $2.75M in FCF and a decreasing accumulated deficit. I am pleasantly surprised by the numbers.
Better than I expected.!
Very decent qt
Recommendation Rating = Buy
All in all a very decent quarter
There is always hope. My guess is revenues below $40 Mil. Sure hope I'm wrong but I see lots disturbing. signs. Sales plummeting in Colorada along with so many new dispensaries in N.M
well we're sinking now on higher than average daily volume so it won't be a fun report. and if it has a good surprise, we'd just be back to where we were at the start of today.
Record Revenues for $SHWZ, of course, but still likely to post losses, despite a small kick from the lower stock price for the derivative adjustments. Just incredible how poorly these MJ companies are performing.
Even if they post a beat, it likely won't help the stock price, imo. GLTA
$SHWZ rounding out the top 8 and a nice view of the players on the field:
Since I’ve been asked a few times for this,
— Cannalorian (@Cannalorian) May 9, 2023
1st Test Version of Combined Public and Private Dispensary Counts.
Open to suggestions.
Might consider making a cutoff of 10+ Dispensaries for example to give more spacing but want to avoid removing companies if possible. pic.twitter.com/autv13Sc0s
Another loss for TCNNF on 8ncreased revenues while we have a 42k blockade at $1.10
Seeking Alpha notes this regarding earnings prediction:
The consensus EPS Estimate is -$0.04 and the consensus Revenue Estimate is $41.17M
Over the last 3 months, EPS estimates have seen 0 upward revisions and 1 downward. Revenue estimates have seen 0 upward revisions and 2 downward.
https://seekingalpha.com/news/3968172-medicine-man-technologies-q1-2023-earnings-preview?utm_source=businessinsider&utm_medium=referral
With 350 shares traded, no tipping of the hand ahead of tomorrow yet. Will be interesting to see if any volume picks up at end of day or going through tomorrow - either to the plus or minus side. But my bet is largely a yawn and things just remain flat even post earnings. Just not enough attention or interest to move it greatly one way of the other.
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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
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