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CEO Paul Rosen explains why 1933 is undervalued.
https://stockhouse.com/opinion/interviews/2020/07/27/this-cannabis-co-mounting-its-covid-comeback
Basically the market is not yet factoring in the larger capacity of the new cultivation facility, or the recent product placements with Amazon and Walmart. Like the fact that Mr Rosen is doing interviews on multiple media platforms to get the word out. Definitely worth the listen. glta
1933's new CEO was co-founder of Cronos Group. Pretty impressive that 1933 was able to land someone with such an extensive record of achievement in the cannabis industry. 1933 appears to be in good hands with cost cutting and focus on near term profitability as his major goals. Plus as a substantial investor in 1933 he has skin in the game, which is always a good thing. Here's some recent interviews with Mr Rosen that show his in depth knowledge of the sector. glta
Paul Rosen on the One Non-Negotiable for Cannabis Success
**NEWS** Thrive Announces Supply Agreement with Leading Israeli Cannabis Company
https://www.globenewswire.com/news-release/2020/07/30/2070187/0/en/Thrive-Announces-Supply-Agreement-with-Leading-Israeli-Cannabis-Company.html
Looks like Target's JV partner Thrive has signed a cannabis supply agreement that could potentially sell the entire output of Target's Canary RX facility into the Israeli medical market. Thrive intends to build a long-term relationship in Israel to supply up to 500 kg of premium dried flower per month for Israeli medical patients.
This would use up Canary's entire projected yearly output of (3,600 kg) for exports to Israel. Thrive must have a plan to increase Canary's capacity by adding more grow rooms, or growing vertically to double capacity, or both. If Thrive can achieve it's goal to sell up to 6,000 kg into the Israeli medical market then the Canary facility should be in full production year round.
This agreement seems like more than just the usual pie in the sky announcements you sometimes get from cannabis companies about large future exports that never materialize, because Thrive's initial orders have already shipped from Canada. Thrive's CEO stated he expects the agreement to provide an immediate boost to volume and revenues.
If Thrive can sell 6,000 kg (6,000,000 grams) yearly in Israel at an average wholesale price of $5 per gram then the agreement would generate approximately $30M annually for the Thrive/Target JV. The only fly in the ointment is how quickly they can expand capacity to supply both the Canadian and Israeli markets. Not a bad problem to have, but one that must be solved quickly to capitalize on the opportunity as soon as possible.
Liking what I'm seeing from the Thrive/Target management teams to get their joint venture off and running in the right direction. imho glta
NGW products currently available @ HaH Coalinga
Flower-
GMO Cookies
GMO Cherries
Garlic Grove
Concentrates-
SVG OG Diamonds
Fire OG Diamonds
Slurricane x GG4 Badder
SFV OG Budder
Pineapple Upside Down Cake Badder
GMO Cookies are back and hotter than ever @ 33.14% THC. Five different NGW concentrates is the most I've seen available at one time. Slurricane flower photo's are up @mikeloudseeds instagram so that should be arriving soon. Lava Cake sauce was mentioned to be on the way "very soon" as well. Right now NGW has two of the top five most potent flowers, and three of the top ten most potent concentrates at HaH Coalinga. Mike & Co bringing the heat!!! Like :)
**Good News** Experion Reports Record Revenue Growth in Q2 and Reports on Financial and Operational Highlights
https://finance.yahoo.com/news/experion-reports-record-revenue-growth-124500839.html
WOW!!! I was expecting a double digit increase Q over Q, but nothing like the 114% increase reported today on a record $1.7M in revenues. Plus a 32% decrease in operating expenses with a 21% increase in gross profit. Best part is average selling price per gram is going up ($8.59) when others are going down.
EXP came oh so close to profitability that Q3 just might put them over the top. Especially at the rate sales are growing. Just an exceptional job by the EXP team to hit one out of the park during a pandemic. Couldn't be happier with this report, and the great work EXP is doing to increase shareholder value. glta
We're in the first month of Q3 (July). The Q2 numbers for April, May, and June should come sometime in August. gl
I'm hoping the next stimulus bill gets passed soon so cannabis consumers will have more disposable income for purchases. The last stimulus checks helped create record sales of cannabis nationally. I read the first sales of 1933's AMA flower is projected to begin in August, so that might be perfect timing for the company to release new products.
I've been watching TGIFF for some time as they struggled to find a profitable niche in the market. Now that they have finally figured out that premium whole flower and pre-rolls are the cash cow of the cannabis industry I'm starting a position. Have a much better feeling with the new CEO's experiences as co-founder of Cronos and other successful businesses. glta.
1933's new CEO was co-founder of Cronos Group. Pretty impressive that 1933 was able to land someone with such an extensive record of achievement in the cannabis industry. 1933 appears to be in good hands with cost cutting and focus on near term profitability as his major goals. Plus as a substantial investor in 1933 he has skin in the game, which is always a good thing. Here's some recent interviews with Mr Rosen that show his in depth knowledge of the sector. glta
Paul Rosen on the One Non-Negotiable for Cannabis Success
YMR, Here's something you don't see very often.
Qwest Kush Mints 31.71% THC Heavy, Heavy indica!! https://www.reddit.com/r/RecPics/comments/hv02fp/qwest_kush_mints_3171_thc_heavy_heavy_indica/
Going over 30% THC is a rarity in Canada. Even in California most flower is under 30%. QWEST has been hitting some high THC numbers recently. All LP's are trying to hit that sweet spot between 25-30% THC that sells out quickly, but few have gone over 30%. GTEC's Purple Punch is the only other one I have seen. Once they get into the larger Thunderchild facility they can THC test more strains than they can now. Hurry up Health Canada :) gl
Finally TGIF has begun full production at their AMA cultivation facility in Las Vegas. According to the company they are expecting to yield 350 lbs (158,757 grams) of premium craft grown flower per month, with another 150 lbs of monthly trim going into their concentrates. It took a long time for the 67,750 sq ft facility to get built and outfitted, but with 19 new grow rooms, and 6000 plants currently under the lights, things are finally looking up.
I've had 1933 on my watchlist forever while they floundered around with different strategies. Now that new management is laser focused on growing premium flower for retail distribution, and cutting costs from unproductive areas, I finally have a reason to buy. Just got lucky that the share price is near it's 52 week low.
The company is doing a good job getting the word out on management changes, and their new focus on flower. Looking forward to seeing their new High THC Cultivars growing along with the bottom line :) glta
Here's some recent 1933 press releases, and promotions.
1933 Industries adds to management team with hiring of Eugene Ruiz as President (Facility images begin around the 5 min mark)
Thanks for the update craignortheast. Really good news...
Joining the OTCQX Cannabis Index could explain the volume increase. This puts NGW on a much larger stage with some some of the biggest names in cannabis. Like :)
https://www.otcmarkets.com/index/.OTCQXMJ
I'm not sure if the partnership with Intrexon/Precigen really matters much anymore. Tissue culture propagation isn't the mystery it once was, and is widely used in cannabis nurseries nowadays.
The 50/50 partnership sounded good in the beginning, but now it seems unnecessary to split the profits when the tech is widely available to all.
Plus there's a animal testing issue with Precigen that some won't like. Maybe it's time for NGW to develop their own tissue culture protocols, and keep 100% of the profits. imho glta
Baller1 For a CBD play I like Charlotte's Web, and have it on my watch list. Other CBD plays I'm watching are Veritas Farms and Wildflowers. Don't own any of these yet.
For high THC cultivators it's hard to find craft growers with as much upside as NGW. Most of the best craft growers in California are privately owned.
There are a few crafters in Canada that are reaching high THC levels like NGW, but haven't reached profitability just yet. My two favorites are Experion Holdings (EXPFF) using the Citizen Stash brand, and Decibel Cannabis (DBCCF) using the Qwest brand. I have shares in both.
Both brands are getting good reviews on Reddit. Here's a couple of recent ones.
https://www.reddit.com/r/RecPics/comments/hv02fp/qwest_kush_mints_3171_thc_heavy_heavy_indica/
https://www.reddit.com/r/RecPics/comments/httnwo/citizen_stash_mac1_2985_thc_the_best_legal/
Always imho glta :)
7 Questions With Mike Jennings, Divergent CEO Of Next Green Wave
https://www.forbes.com/sites/warrenbobrow/2020/07/19/7-questions-with-mike-jennings-divergent-ceo-of-next-green-wave/#6e82f824ed6a
Thanks Harpo... Agree a profitable cannabis company, being a rarity, should be in the higher range of valuations. If NGW is going to double or triple capacity over the next 12 months then the current valuation is way off the mark. Hope you are right about a capacity increase announcement coming soon, because they are already selling everything as fast as they can grow it. Not a bad problem to have :) gl
Interesting article on current cannabis company valuations.
https://mjbizdaily.com/more-cannabis-estimates-cuts-in-second-quarter-jeopardize-investments/
From the article-
Valuations have also expanded off the lows, with the U.S. companies trading at about 3.5X 2020 revenue and the Canadian businesses maintaining their premium valuation at about 5.0X 2020 revenue.
Those multiples are up from lows of 1.6X and 3.5X sales for the U.S. and Canada, respectively.
Do the math for us Harpo :) NGW looks undervalued to me... glta
New Instagram post from @decibelcced
https://www.instagram.com/p/CCsfmUOhlys/
Decibel has really been upping their social media game recently, which is how the game must be played in Canada where no traditional advertising is allowed for cannabis. Hopefully we will soon be seeing concentrate photos now that they have their Health Canada approval for Qwest branded extract sales. Would be nice to see some photos of the new extraction facility as well. Liking Decibel's more frequent postings on social media platforms. glta
However NGW decides to expand capacity it needs to be capital light, and on terms favorable to the company.
Personally I would like to see them partner up with already licensed cultivators who have extra capacity available to grow NGW cultivars provided by the company. This would eliminate any lease obligations or purchase related expenses.
Partnerships like this spread the risk, and don't require large outlays of cash for either party. These deals can be set up on a harvest to harvest basis with no long term obligations for either company.
This way NGW could move on from unproductive relationships without all the drama. It could also help NGW diversify into both indoor and outdoor grow operations for different extraction inputs.
The key is to negotiate ironclad terms acceptable to both companies, like a 50/50 split after expenses, to ensure a good working relationship between the parties. imho glta
**Big News YMR** Thanks for the heads up!!!
Health Canada took their own sweet time, but thankfully the day has finally arrived where QWEST branded concentrates can launch. Glad to see they will be starting with wax and shatter concentrates, because what's on the market right now is lacking in every way. Reviewers are desperate for quality concentrates that I hope QWEST will be providing in short order. Now we just need the Thunderchild facility to get approved, and its full steam ahead :) gl everybody!!!
https://www.newswire.ca/news-releases/decibel-receives-sales-amendment-for-extraction-facility-888548310.html?fbclid=IwAR3k3OoGftr0UdaE4SQnxWkmrBwtpOSAfBw3_i-FVHPBc8XuQxY0OWbTm_U
Very interesting interview with Mike Jennings on Proactive.
Some company goals he mentioned were to increase capacity by maximizing output at the current facility. He mentions the time horizon to add more cultivation capacity at the Coalinga property is 24 to 28 months.
They are also looking for low cost existing infrastructure to build NGW's next stage of flower production to double or triple capacity over the next 12 months. Because of high demand for NGW products he believes it's prudent to capture that momentum, and get more production online as quickly as possible.
If they are currently looking for low cost cultivation facilities it's the perfect time to do it. There are currently a large number of cultivation facilities available for sale or lease from cash strapped growers unable to meet the financial demands of the new California cannabis regulations. This is a great opportunity for NGW to add grow partnerships and joint ventures as well.
NGW could be moving toward a CPG business model of curating, and distribution of premium flower from multiple sources. Mike says they are already selling everything they can grow so this would be a logical next step in their growth. Smart move :) imho glta
https://ca.proactiveinvestors.com/companies/news/923945/next-green-wave-releases-2nd-quarter-financial-numbers-recording-3-million-in-revenue-923945.html
Added 13K before they stopped filling me. Looks like they dropped it on just a couple of small sells. MM's are punishing sellers, which is good for longs, and bad for anyone desperate to cash out.
Why anyone would want to sell on the cheap a cannabis company that just reported $5M in revenues is a mystery to me. Plus the Q2 numbers could be substantially better with record cannabis sales in Canada over the last few months. Also the CEO just reported that two new stores would be opening soon in a recent interview. If so they will have 6 stores generating revenues during Q3 & Q4.
To me this seems like a small amount of desperation selling to pay the bills possibly due to job/income losses related to the pandemic. A sad but true fact of life for some these days. For others it's a buying opportunity if you can get filled during the dips. Congrats on getting filled G544, it's not easy to do these days. gl
https://www.newswire.ca/news-releases/c-suite-at-the-open-benjamin-sze-ceo-decibel-cannabis-company-tells-his-company-s-story-filmed-in-may-2020-806460417.html
EXP's Q2 earnings report could be any day now if they don't take the COVID 19 extension. This could be the first report where they top $1.0M in revenues. Their Q2 update in May said they anticipate growth of at least 50% over Q1, which was $803,655. If they hit their target Q2 revenues should be at least $1.1M or higher.
This would be a huge milestone for a micro craft grower to achieve. With new grow partners now adding to their supply, it could be just the beginning of double digit Q over Q revenue growth going forward. If they have continued to cut costs, then they might get close to EBITDA positive or even net income positive.
There's no questioning the quality of the product based on real customer reviews of Citizen Stash products on social media. The retail stores that carry CS seem to sell out very quickly. So now it's just a matter of keeping the supply chain continuously flowing with product. Easier said than done, but by all indications EXP appears to be heading in the right direction, imho. glta :)
https://finance.yahoo.com/news/experion-reports-revenue-growth-first-124500208.html
**NEWS** Next Green Wave Revenue Exceeds US$3Million In Q2
https://finance.yahoo.com/news/next-green-wave-revenue-exceeds-154800994.html
Positive EBITDA is good news, positive net income is great news!!! Congrats to the entire NGW team!!!
Universal Collective promoting NGW products on Instagram.
https://www.instagram.com/p/CCRjuKnBF9o/
Nice photo, and amazing looking buds. Like :)
Cannabis A Winner In COVID 4th of July Celebrations
https://www.greenmarketreport.com/cannabis-a-winner-in-covid-4th-of-july-celebrations/
According to this article cannabis sales are booming right now. Expecting it to be bigger than 420 sales. Not surprised since NGW products are now completely out of stock at HaH Oakland, with only two whole flower strains left available at HaH Coalinga. Three whole flower strains are available at Universal Collective in Los Angeles last I checked. NGW appears to have sold through harvests of Slurricane, Wedding Cake, and GMO Cookies. Lava Cake, and Gelato were harvested but have yet to appear under the NGW brand. Possibly sold wholesale??? Q2 is in the books!!! Happy 4th everybody!!!
Looks like Thrive will be selling 7 gram containers of Top Cola Flower with the remaining smaller buds used for pre-rolls. This will be a big difference from most LP's who break down the top colas for 3.5 gram containers. The top cola is what cannabis connoisseurs want most, and now can have under Thrive's Greybeard brand.
Growing all those top colas is where the Canary facility comes in adding 4x more grow space to Thrive's current capacity. Thrive appears to be going after the high end market which should be good for both companies bottom lines. Liking this partnership more and more as time goes by. glta
https://www.benzinga.com/markets/cannabis/20/06/16452014/thrive-cannabis-rolls-out-greybeards-products-for-july-2020
http://www.globenewswire.com/news-release/2020/06/30/2055342/0/en/Thrive-Launches-Greybeard-Cannabis-Co.html
Check out the article on terps @mikeloudseeds instagram. Looks like Mike is thinking about what type of extraction methods he wants to use. From the post it sounds like he wants full spectrum concentrates like live resin, and other terp loaded concentrates.
Most solventless biomass is grown outdoors because of the quantities required, and the abundance of terps in sun grown cannabis. NGW might end up using some of their 15 acres for this purpose. Have a feeling wheels are turning on the extraction front at NGW. glta
https://cannabisnow.com/live-resin-vape-cartridges-from-nug-labs-are-an-explosion-of-terps/
https://www.cannabis-mag.com/therapeutic-benefits-of-terpenes/
NGW Products now available in Los Angles CA
@ Universal Collective
Forum Cut BX
GMO Cherries
Slurricane
@ Green Cross of Torrance
Forum Cut BX
Garlic Grove
Fire OG Pre-rolls
Only see flower so far, but concentrates, and vapes might not be far behind. I'll keep watch on that. The Oakland HaH is currently out of stock on all NGW flower. I saw Slurricane & GMO Cookies come and go quickly there early in the week. HaH Coalinga was down to one NGW flower strain (Garlic Grove), but has since added GMO Cherries, and GMO Cookies. NGW concentrates still available in Oakland and Coalinga. Q2 is almost in the books. Exciting times!!! glta
Check out these new pics on QWEST's Instagram. Looks like they have dialed in their MAC1 strain at a much higher THC level this time (28%). This will get some attention from the THC shoppers, which is almost everyone :) Also the OG KUSH is looking strong at 24% THC. These should be big sellers in BC & ON who are lacking in ultra-premium high THC flower. Liking what I'm seeing from the Decibel grow team :)
https://www.instagram.com/p/CB34UpRB9zQ/
NGW now delivering product to iconic LA dispensaries. These are some of the pioneer dispensaries from California's medical only days. True trailblazers with loyal customers built from years of quality patient care in Los Angles. Impressive that NGW was able to prove themselves worthy of inclusion in these elite dispensaries for medical and now recreational customers. Like :) Congrats NGW Team!!!
https://www.instagram.com/p/CB127dXBGCb/
https://www.dtpgla.com/
https://greencrossoftorrance.com/
http://www.universalcollectivela.com/#collective-section
https://www.smarteranalyst.com/new-blurbs/the-senior-officer-of-next-green-wave-holdings-nxgwf-is-buying-shares/
Slurricane won the Sun Cup for best greenhouse grown flower. Maybe NGW's Slurricane will win an award for best indoor grown flower :) Certainly haven't seen anything with more Terps and THC than NGW's in the online cannabis stores I follow.
Award or not NGW's Slurricane is a fast seller and currently out of stock, or possibly sold out, at HaH Coalinga. Also recently out of stock NGW's GMO Cookies, and Fire OG Diamonds.
Wedding Cake has been out of stock for a few weeks so that harvest may have completely sold out. Right now only Garlic Grove is available as whole flower. Will update when new product arrives. glta
https://www.instagram.com/p/CBt2t3jBvjP/
Decibel's Revenue Ten-Folds In Q1, Reaching $5M
https://www.benzinga.com/markets/cannabis/20/06/16316689/decibels-revenue-ten-folds-in-q1-reaching-5m
Decibel generated $5M in revenues with just 4 retail stores, and a small 26,000 sq ft cultivation facility. Seems pretty impressive to me. Looking forward to seeing what they can do with 80,000 more sq ft of cultivation, two more stores, and QWEST branded concentrates:) glta
Best cannabis strains of summer 2020
https://www.leafly.com/news/strains-products/best-marijuana-strains-summer-2020
NGW had the Fire OG Pre-rolls & Diamonds @ HaH Coalinga last time I checked. NGW products come and go quickly these days. glta
Too many investors still enamored with big box cannabis companies. Hopefully that will fade with quarter after quarter of losses, and we'll see movement into the small caps closer to profitability like Decibel. I'm using the interim to leisurely accumulate before the crowds arrive :) gl
**NEWS** Decibel Announces Q1 2020 Financial Results Reflecting First Full Quarter of Contributions from Merger
https://www.prnewswire.com/news-releases/decibel-announces-q1-2020-financial-results-reflecting-first-full-quarter-of-contributions-from-merger-301080023.html
Knew revenues would be going up after the merger, but didn't expect a increase this large. This should qualify Decibel for Tier 2 status in New Cannabis Ventures Canadian Cannabis Index. Right along with well known cannabis companies like Supreme, WeedMD, Emerald Health, Cronos, and Delta 9. Hopefully revenues of this magnitude will get Decibel the attention they deserve.
Looks like Decibel's four retail stores are averaging around $700K per quarter, which is outstanding to me. Plus two more Prairie Records stores are due to begin operations this summer generating another $1.4M if the average holds. Then there's the extraction and cultivation facilities waiting only for Health Canada approval to begin producing QWEST branded concentrates, and to cultivate the large quantities of premium flower needed for extraction.
Last but not least Decibels average wholesale flower gross price per gram of $11.85 is remarkable and not only reflects the quality of the product, but also the expert knowledge of their experienced grow team.
Very pleased with the results from the first full quarter of the combined companies. Health Canada licensing is the only thing left to get Decibel's facilities fully operational. Looking forward to seeing Decibel's ultra-premium concentrates soon thereafter. Congrats to the Decibel team on a great quarter :) glta
Citizen Stash MAC-1 Pre-rolls now available @29.85% THC
https://www.reddit.com/r/RecPics/comments/hb5799/mac1_citizen_stash_2985_percent/
Too may cannabis companies unload their lowest quality cannabis as pre-rolls. Citizen Stash uses their highest quality strain specific cultivars. It may cost more, but you're not smoking bottom of the barrel shake and trim.
This is how all LP's should approach pre-rolls if they want to build a reputation for quality. Unfortunately most don't. Perfect timing for Citizen Stash to introduce their ultra-premium pre-roll line for consumers that care about what they consume. Great job CS. Like :)
First review of Sage N' Sour on Reddit
https://www.reddit.com/r/RecPics/comments/hacjz7/citizen_stash_sage_n_sour_packaged_april_27_2638/
Already 35 up votes in less than 24 hours. Citizen Stash building a quality reputation the old fashion way. They earn it :) glta
Target & Thrive need to be more active on social media to let investors see the progress being made at the Canary facility. Once they start showing grow rooms filled with premium flower it could create a positive reaction without the expense related to paid advertising.
Target hasn't had much to talk about since the facility was licensed, but now they appear to be moving full steam ahead. All cannabis companies need to have a active social media if they expect investors to take notice. It's just how it's done these days.
Target is still getting the word out. Found this on MG Magazine a few days ago. gl
https://mgretailer.com/press-releases/canary-rx-inc-signs-definitive-agreement-with-thrive-cannabis/
Nice photo of QWEST's Forbidden Fruit on reddit.
https://www.reddit.com/r/RecPics/comments/h96vem/qwest_forbidden_fruit_19_20200421/
https://www.leafly.com/strains/forbidden-fruit
Still seeing lots of QWEST products available online, which is always encouraging to me. The upcoming Q1 numbers should be out soon, and the new store opening announcements as well. Hopefully Prairie Records sales have been going up similar to the increases other retailers have reported so far.
The company may need to rethink the the tactile nature of physically touching the "records" for strain information. Those days may be over and the space could be used for enclosed product display cases instead. Unfortunately COVID has changed the the shopping experience for everyone. imho glta
Agree HD, a free exchange of ideas is what it's all about. gl