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.
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.
Besides the points already made by others related to Purplebees, probably more Colorado expansion, etc, three things stood out for me in the CC, all reaffirming what we already knew but great to see it happening, seeing their honesty in the call, and the confidence and assuredness of the management team:
Criteria for expansion – nice to see this not only stated clearly and directly but executed well as proof of what they say they do:
Our current criteria for potential acquisitions includes the following, revenue growth or growth potential that exceeds Colorado's averages, EBITDA, profitability with surgery opportunities, attractive acquisition prices that are accretive to our shareholders, and provides additional products, and attractive locations. Any announcements regarding expansion, intentions will be made once we've reached definitive agreements with prospective partners.
In regard to dividends, this focus on growth as the best way of adding shareholder value is welcomed:
I think we're very much a growth stock, so right now it would be our view is that we would reinvest any of the profits in any of the free cash flow in the business, where we can get outsized returns for our shareholders and we think that that capital is best served doing that today, that doesn't mean down the road.
As we said in prior posts, it is a foot race with all the consolidation going on in the industry for SHWZ to both execute due diligence on acquisitions while keeping the speed up in making those acquisitions in order to get the best bang for their buck.
Again, clearly stated, they know what they’re up against and balancing their approach:
So I think just being able to continue to be very diligent around our underwriting of M&A deals and being very consistent and thoughtful about that, and working with those that are selling to us and partnering with us to move those along at a good pace.
Also, nice to see the stock higher than the 4% it went down yesterday... Glad i bought more even though i shouldn't have - just couldn't resist.
if this only goes up 4.36% tomorrow I swear I'll forego investing for the remainder of my days...
great ER, still holding to their yearly guidance based on announced acquisitions, so we know they will probably beat the guidance as well with additional acquisitions in the next two quarters.
I saved a little cash for a potential lunch hour dip to pick up a few more
I just nibbled shares at 2.20. Not that much though, lol.
I would expect a PR on this on Monday, great lead-in to earnings.
Per doc's post, sbud and Medicine Man are now the owning entity. Great to see. If I'm right, this is one of the first pot dispensaries to get a license in Colorado.
3 dispensaries under Colorado Harvest...
2 in Denver and one in Aurora.
and based on the later Colorado harvest link in my previous post, that 2 mil may be under by half, since they have 43 employees not in the 20s. Haven't found all sites yet.
Nice find, Doc.
http://www.reefernation.com/dispensary/high-country-supply-llc-3/
If what is posted here is reasonably accurate, 2 mil in yearly revenue:
https://www.buzzfile.com/business/Colorado-Harvest-Company-303-777-1840
High Country Supply is estimated to generate $2.0 million in annual revenues, and employs approximately 7 people at this headquarters location and 23 total employees across all locations.
Colorado Harvest Company:
https://coloradoharvestcompany.com/about-us/
if I were tending toward the paranoid I'd agree, but the more mundane reasons that there aren't enough eyes on the stock, the next ER and not the prior one will be the more pivotal moment for the company explains for me why it's been trending sideways. We are all expecting the ER to put this really on the map and get the stock the attention it deserves. I was happy to pick up a few dribs and drabs of extra shares during these quiet times. But now I'm ready for things to head north starting next week.
Nice to see shwz heading up on a Friday the week before earnings
I still own a bit of this. I will be listening for details on all the great progress they've had since the last ER. If none of those details materialize, and it's a call like last one, I'll sell the shares I have remaining. I've been selling off portions at each ER since they haven't gotten to a convincing point they can manage this business, at least to me. And it's a shame, as they could be so much further ahead with competent leadership based on where they started.
we should join SA, shwz anonymous, since we have a stock consumption problem...
and me at 2.28. Don't mind testing the waters and picking up a few shares here and there to add to the pile.
buying at the end though is always nice.
11k on volume on a day when earnings news excited the sector. How is that even possible?
Doc has that spilling out of his pockets when he gets up from the couch.
I think your take is most likely, coupled with their biosciences area and newly acquired grow identifying and then growing plant based products for medicinal purposes, creating more of holistic wellness possibility (cannabis and non-cannabis medicinal brands) at the dispensaries (as well as taking those non-cannabis items into grocery stores, pharmacies, etc ahead of any cannabis legalization. It would get the SHWZ brands out there ahead of legalization, build relationships, etc with various retail distributors. I'm purely speculating of course, we'll have to wait and see - probably gets answered at the next ER.
The last line is interesting:
none of the foregoing containing cannabis or cannabis derived substances.
exactly. I know some grouse when companies expand or fatten the management layer and suck up compensation, but SHWZ has a great team and if they keep delivering like this and this fast, they deserve the compensation, and hopefully, we all benefit. I expect to.
Thanks Funman, interesting read. For MEDIF to make money, trials need to bear fruit, owners of those trials need to engage and partner with MEDIF to produce and distribute product. It's potentially a very compelling long term strategy, but there's a long row to hoe before this bears the fruit expected.
I added a little more this week... couldn't resist...
agreed, medif needs to take advantage of the current illegality of pot to develop IP, products, customers to at least be worthy of a buyout rather than just be squashed. For them it's a foot race against legalization in the US.
could be the worm already turned on July 6 when SHWZ was at 34 RSI.
Isn't the good news on this is that a cannabis friendly company is now a pharmaceutical company, where historically big Pharma has been a bit wary of cannabis due to its impact on other drug sales?
This news sets up an interesting challenge of a David v Goliath in regard to MJ pharmaceutical drugs. I usually bet on where the big money is, but I'll keep my holding here for now since this is worth watching over the short term...
I guess I should console myself with the thought that if it goes below 2.20 this week, I can buy some more...
Will be interesting to see what the sector does on the ERs that start getting reported next week and into next. And by comparison for SHWZ, how some of the companies doing acquisitions match up in terms of value on their purchases, though of course some in the latest frenzy won't have solid numbers to report yet.
so here's the 8-k - haven't caught up on the other postings yet so don't know if that was already noted below:
https://www.streetinsider.com/SEC+Filings/Form+8-K+Medicine+Man+Technologie+For%3A+Jun+25/18634261.html
Black Box is under BG3 Investments, which I found this reference noting around 680k in sales with 7 employees:
https://www.dnb.com/business-directory/company-profiles.bg3_investments_llc.fb6ddd889538adb3c06439b5bd18acff.html
other estimates of emps and revenue vary from that. The business has been around for 5 years. Shearinger's name is on several companies not in play for this acquisition, and appear to be outside mj.
I can't find any other details than that.
Hmm, they are owned by Hero technologies, under the stock symbol HENC, which has a majority control of Black Box. And Henc in April was going after Veteran Hemp in CO. So if HENC is expanding in the cannabis space, why would this now be associated to SHWZ? Not sure this is this the right black box,or is shwz gaining majority control of black box, or is shwz going after HENC in your opinion? It just doesn't seem to fit....
On vacation to Annapolis so not watching too closely this week - I was interested in what intellectual Property they acquired from Drift. Could that in the end be worth more than the dispensaries in the long run? Yes this adds to the Scwazze footprint in CO but it’s only two locations. Is the real value in the intellectual property? Wondering aloud as Jethro Tull used to sing...
Drift website. https://www.driftboulder.com/
And I'm not complaining if it never hits the 2.20s again. Maybe I should announce I'm interested in buying each day if the stock moves higher as happened here...
If it hits the 2.20s this week I'd be buying more.
I'm assuming that's sarcasm, since well, you're really good at it. . Dye's due diligence may have him move a bit slower than others but the end result is so much better. I think with the experience of the past acquisitions behind them, their beefed up acquisition team, and a pipeline he and not Andy initially vetted being considered, the moves should come more quickly and accelerate over the course of the year.
Today's Medicine Man news highlights the competitive nature of CO, and the growing push for "land grabs" of dispensaries, grows, etc. Looking at the PR, and the heavy weighting toward stock vs cash on the deal, as well as price, I believe SHWZ by comparison looks exemplary in their deal making from an investor perspective and in terms of current assets. The only question now is how quickly can Dye move to get the new assets he wants, and even if he wasn't already moving quickly today's news should turn up the heat a bit on making progress. In my opinion, good for us, as we should hear the next shoe fall shortly then.
based on our stock's recent strength, how about Scwazzeneggers?
Correct, volume didn't materialize like I hoped (was hoping for another + 100k day), but I am liking that it keeps holding ground regardless. Just a matter of time now, just waiting on another announcement hopefully as we make our way to earnings
coiled like a spring. it's just a hunch on my part, but expecting it to move toward end of day. but nevertheless, just a matter of time now.
who else gets the feeling this is about to blow today?
Not sure if this SHWZ Sr Mgr E Commerce job posting was mentioned here before... apologies if it was.
https://www.linkedin.com/jobs/view/senior-manager-of-e-commerce-at-schwazze-2586057957/
Nice to see the volume going up, healthy sign.
Thanks. I think this comes down to the sausage making that will need to occur to pass the bill. Republicans have a bill that largely is business and banking focused to decriminalize.
https://www.marijuanamoment.net/congressional-bill-to-federally-legalize-marijuana-filed-by-republican-lawmakers/
The Democrats have the additional social justice component to their legislation, which the Republicans would have a tough time defending in their home districts, since it's minority focused.
The question is then do Democrats abandon the social justice piece (retroactive purges, etc of records, routing money to those most abused by federal drug policy), which will alienate their progressive wing and those who got them into the White House and a split in the senate, or do they fight to keep that in and then lose the opportunity to decriminalize, since the Republicans are likely not to budge.
Dems could try a compromise by removing the social justice components, perhaps announce a more formal social justice related legislation that would include what's in the current mj bill and other needs related to criminal justice and prison reform, but they'd get killed in the midterms, since people of color would correctly view their needs are not as critical as those of the bankers and business owners, and once again are being kicked to the kerb. That punting for a secondary bill on reform and justice would ensure dems aren't elected in the midterms, so I doubt they'll budge.
Based on the current impasse, ironically, we may need to wait for the Republicans watered-down bill if they gain the house and senate in the midterms, since there are enough republicans who recognize the money at stake, and that of course will always win in the end.
To your point SHWZ can continue to grow, expand, cross into other states before 2022, making it both a higher priced stock and a player nationally, as well as a great takeover target if the legislation passes down the road, or even if it doesn't. May actually be better for them and us in the long run.