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It's fine, we got about 30% more volume above our average. All I'm looking for right now is that we start getting more and more volume. It's still easily manipulated at this level with the right amount of capital.
That's if Tweed remains the size they are. We know that Tweed is looking to aggressively expand. Granted, the article was clear that they are not looking to get more grow room right now until they maximize and make full use of what they already have. The point being that this gross profit is AS IS. Not including oils, edibles, ext. once that becomes legal.
The volume is going to naturally be higher because of the price but not this high. I agree with you in that I'm waiting for the volume to calm down. It's becoming a tempting buy at this price but I'll wait.
I would like to see us break that HOD and hold it into close to help support the break out volume.
Stick to 17 and only 17. It can become our mascot number.
For now it can be $17, but when the stock reaches $17 we can say things like...
"$17.17"
"Should break $20.17 soon"
"Support looks like $50.17"
lol, or perhaps I just have bad taste in jokes.
Released today a few minutes ago.
http://www.midasletter.com/2014/09/tweed-marijuana-inc-ceo-bruce-linton-q2-expanded-production-growing-sales/
Tweed Marijuana Inc. (TWD.V) CEO Bruce Linton On Q2, Expanded Production, Growing Sales
Tweed Marijuana Inc. (TSX.V:TWD)(OTCMKTS:TWMJF) CEO Bruce Linton returns to Midas Letter to talk about Tweed’s expansion in Niagara-on-the-Lake, Ontario, where an additional 500,000 square feed has been added to Tweed’s Smiths Falls operations. Tweed was the first medical marijuana company to become publicly traded in Canada – an honour now shared with Bedrocan Cannabis Corp (TSX.V:BED) and OrganiGram Holdings Inc. (TSX.V:OGI)
According to Linton, that will raise Tweed’s growing capacity to somewhere north of 45 million grams per year, which, at an average sale price of $7 per gram, means potential maximum annual yield of $315 million gross worth of Canada’s most valuable cash crop
James West: So Bruce the last time we talked to you it was early days for Tweed. You had yet to ship any marijuana, you were in the process of building out your infrastructure. Why don’t you tell me what’s changed in the last six months, what is the value proposition for investors in Tweed Marijuana today?
Bruce Linton: In the last six months, to say everything’s changed would be overstatement, but it does give you an indication that a lot has changed, so six months ago, we had maybe just become public, we had yet to ship product, we had yet to purchase Park Lane in Niagara and that didn’t have license, so when you look at us today September 3rd, you have a medical marijuana company which has a platform that’s somewhere around 500,000 square feet of total production area, and somewhere north of a few hundred thousand square feet that can and will be licensed to become growing/flowering area. And you have a company that began shipping May 5th, but really in a sparing way, but now we’ve put a platform in place that actually has a curve of quite a material volume that next year could see us producing many millions of potential grams of product. Now it’s about market demand, not just production.
James West: So Bruce in view of your increased square footage, that’s quite a substantial change. Now what is your annual allowable licensed production, according to your MMPR licenses across the two facilities now?
Bruce Linton: In Smiths Falls, Tweed’s original location, it’s up to 15 million grams. And that hasn’t changed. What we’ve licensed in Niagara-on-the-Lake, the facility is about twice as big as the one in Smiths Falls – it’s about 360,000 square feet of greenhouse. And so we put the security control around the whole premise, and a portion of it, we have licensed for production for this year, and we’ll expand to the whole site for next year, which – we don’t have a final number, but I would expect it to be double the number we’re permitted to grow in Smiths Falls, maybe more like triple. And so you could be talking somewhere in the range of 45 million to 60 million [grams] as a potential range of approved volume. That’s not a quota – that’s a maximum allowable limit. If you produce a gram more, you’re in excess of your allowable permit.
James West: Okay that’s pretty substantial. Do you see the demand currently, with the current patient base licensed by MMPR across Canada, that could consume that much in a year?
Bruce Linton: Oh absolutely not at this time. Our business remains in one way consistent, which is a pretty simple business. We need to have high quality product that’s always available. It has to have a low and decreasing cost per gram. And to the market part, we have to educate physicians, so we’re the preferred choice. And so we’ve been investing in that for many months with what you might call ‘Pharma reps’ – they’re parties going to educate doctors, as to why ours is the preferred source, and marijuana is a preferred alternate to many of the painkillers and other medicines, and I think we’re doing a good job there, so I think we should get a disproportionate allocation of the future market. But it won’t, in the near term, meet all of that supply. However next year, there’s this little thing called the Federal Election, and who knows what happens there.
James West: Right. So Justin Trudeau in reference to that has indicated that he’s willing to support the decriminalization of marijuana pretty broadly, and that implies the legalization of recreational marijuana, and I guess that would be truly a game changing event for you guys?
Bruce Linton: Yeah. It’s a great business as a medical – even Health Canada thinks there’ll be about a half million patients. But when you think about legalization and a controlled distribution – because legalization also means taxation. It doesn’t mean growing it in you flower pot, it means more like probably distilled spirits. And so, that is a multiplier on an already substantially growing business.
James West: Okay, so in terms of your earnings thus far. There’s been a little bit of surprise at the limited amount of revenue that you’ve been able to demonstrate. What is behind all that and where is that heading into your next quarter?
Bruce Linton: Our Q2 numbers were really insignificant in terms of top line – it was less than $200 K. And it all occurred in the last portion of the quarter. Simply put – production was late, and production can’t come out until the rooms are built. When you get those built, you can start to see where your cycles go up, which was why it was a material event to double the number of growing rooms, and add Niagara-on-the-Lake in Q2, and by August 31st with the growing rooms, so that we actually know our production platform’s much bigger. Because you can only sell what you have and we sold everything we had. Typically, you put it on the shelf and it’ll be gone in measured in hours. So now we’re starting to be able to have some inventory that stays on the shelf, and we’re being able to convert what was a waiting list into clients, and we’re being able to take new clients. And so those are all things that happen when you begin to have reliable production.
James West: Hmm. That’s interesting Bruce. So tell me, how many clients did you have in April and how many do you have now?
Bruce Linton: It’s really bad not to answer questions, but let me give you what I think is a good non-answer. When one person asked me about this, I said ‘What I think you guys really care about is how many hot dogs were eaten. Not who ate the hot dogs.’ And so, if we had Joey Chestnut, the world champion hot dog eater as our client, he might eat a lot more than the average person. So we haven’t been disclosing the number of patients. What we have been disclosing is that we found in the early stages, when there was scarcity, and people didn’t know when we’d have more supply, their individual buying patterns we don’t think were predictive, but they were buying as much as they might have been allowed to. And so we’re going to continue to go out not disclosing the number of individual hot dog eaters if you will, but rather we’re going to disclose the value and the volume and the division between sources of production. And I think that combination, people will be able to see same store visits, quarter-over-quarter, how much more did you move?
And so it was an early choice, because as soon as you disclose patients, you get an entirely different matrix. And I’m not sure that’s a helpful thing.
So we’ve been selling out, and we’ve been selling out quickly, and now we’re finally not selling out, and we’re being able to put more people onto our buyers list, and that’s kind of the story line.
James West: Okay. Then I’m not going to poke and prod at that point. Though it is tempting, it is tempting. However, let’s focus then on the analogy then of same store sales growing quarter-on-quarter: What are you seeing, what are you comfortable projecting, and what can you tell me about the revenue and the quantities going out the door quarter-on-quarter?
Bruce Linton: Probably would have been good for me to have our press release and the guidance we put in there, and the call that followed. But really what we’re looking at is the total production platform, the price per gram, and the gross margin. And I think you can add that end and I don’t want to mis-speak or give a generalized answer, but we summarized where we would be at the end of the year, and that gave people a range of estimates in terms of top line that they were generating that I think would be fair for you to do too as a summary of the call, but not appropriate for me just to throw out there. But what we’re talking about it is, if you annualized it, and looked at $180K in Q2 of this current fiscal year and then looked ahead one year, what could the growth be quarter-on-quarter, it’s a very very very high multiple because we started with a low number and we think that there’s a big platform delivery opportunity in a market that will at least eat up that for the next year.
James West: Sure. Okay so then, I’m looking at the total licensed capacity at this point or what you’re projecting it might be… assuming it’s the lower end of that, that’s a substantial amount of revenue coming in every year. Is your plan then to maximize what you’re allowed to grow – I mean, it’s a silly question – and then sell as much of it as possible?
Bruce Linton: Yeah but what we’re trying to do though is…so think about the plant that we’re producing. We have about 27 varieties right now, and if the average strain grows in 7 or 8 weeks, there’s some that might take 12 or 13. And some of the strains sell for a higher price, and take a long time to grow, but produce very little in that time per plant. And so what can do is optimize, if we want, for the highest volume, but rather we’re trying to optimize for the best ‘what the market needs’, and the best flow to the bottom line. Which may not be the maximum quantity, but the best margin contributors. And so I give you that long harangue in that you don’t want to grow all of one strain that produces the biggest volume in the shortest time if it doesn’t have the market demand or the margins.
James West: Right. Of course. Okay so then what is your all-in cost of production at this point?
Bruce Linton: If you take a look at the guidance we put in, we’re looking at a gross margin as we go into next fiscal, of approximately 70%. And so the cost per gram by the location will vary, the quantity by location will vary. Obviously if you’re growing it in an outdoor facility, which doesn’t need electrical inputs for lighting or air conditioning, it has a lower cost per gram than the indoor, but it may have a different amount of control that you can exercise on the plants, so the variability of the crop is a bit like wine – you know, it varies from year to year – and so given the fact that we’re into our first cycle, we haven’t given a final margin model, but we put some guidance to say this should be the gross level, and I think if you watch each quarter, if you compare Q1 to Q2, and I think as you look at Q3 and 4, we start to get more specific breakouts, but the company’s in its first cycle of growing, we’ve been public for six months, and the sector was only initiated 13 or 14 months ago as a legislated framework, so we just don’t want to misstep and give direction that’s inaccurate.
James West: Sure. Okay.
Bruce Linton: It’s not very helpful when I won’t tell you the answers, is it? But what we’re trying to be is prudent managers rather than artificial promoters, cause we expect to participate for more than the next short while.
James West: Sure. And there is a degree of credibility in being evasive when you’re not really being evasive, your just not being completely revelatory, which is fine. I can understand that. I mean you guys are essentially the first publicly traded medical marijuana company in Canada, everybody’s got a target on your back, and everybody compares themselves to you so I can understand that.
Let’s focus in on this new facility in Niagara-on-the-Lake now. You acquired the project, and it was very quickly licensed by Health Canada, whereas across the board, there’s been no other facilities licensed in Canada since the original 13 if you will, so my question for you Bruce is, do think this has do with the fact that they realize that they’re just adding capacity to what is in their view is a known quantity? And therefore, could be largely viewed as a vote of confidence in Tweed’s ability to comply with MMPR regulations?
Bruce Linton: Probably the best answer would be yes, but it wouldn’t be the most truthful one. So it wasn’t that. What it was is – if you’re very familiar with the regulatory framework, what they had in Niagara-on-the-Lake prior to what Tweed had in Smiths Falls – they had the security clearance of key people, and they had municipal support. And they had a ‘if you build it, and you can run it and show us the procedures to run it as you’ve documented, we’ll give you license’. So by October-ish of last year, they were way ahead of Tweed. Way ahead.
But what they had a challenge with was acquiring the necessary capital to implement all of the steps – the mile of fencing the laser detection systems, the infrared cameras, the cameras for recording – so they didn’t have the capital, and they didn’t have the capital to buy the facility. They had the right to buy the facility. What we had was a knowledge that if you then built it and exactly how to implement it because we’ve been through several audits, and so we quickly just securitized the premise, acquired the property concurrent with the announcement on the 19th of June, and it was a very easy and efficient stepping process to implement what was already agreed and described. To our knowledge, it was the only facility in Canada that was at that state, and hadn’t arranged the capital, and therefore wasn’t licensed, and so there wasn’t a big backlog of others like that.
James West: I see. So is it safe to infer from that whole episode then that the hundreds of other applicants just haven’t reached the level of development or security or clearance according to Health Canada, or, is more that Health Canada is not issuing licenses pending the outcome of their challenge to the Allard injunction?
Bruce Linton: I’d be guessing like others, but what I do think is happening is, those are two distinct paths. On the path of approving/reviewing, etc., those who moved early and had a very clear plan, got very focused responses from Health Canada because there were very few of us. The people who, in about November or December, read about in the paper and said ‘I think I like marijuana. I should do that’ became a crowd of 7 or 800 applicants, which choked the system. And so they changed the procedures I think in a correct way, which is – the first thing they do not wish to have happen is for people who are not security clearable, to have the right to grow marijuana. So rather than look at the plans of how would you do it, they look at should you be allowed to do it. And that sequencing makes it a drawn out process.
The downside for us is, well – you probably don’t think of it as a ‘downside’ is – but I’m standing in a room right now as a security-cleared person – one of six at Tweed – surrounded by a few thousand marijuana plants. And I’m doing my office work from here because on every day where there other people present working, you have to have one of our six security-cleared people in each room. And we can’t, since mid-January, get any more added. And the choke point for many of the applicants as I understand to be, is getting security-cleared people through. Whether or not Health Canada wants more through, I don’t mind that I’m under that. I think it’s just the right number and but no more would be about the right number to add, but I can’t see that I expect that to be the case. However, if you’re looking at it from a patient’s perspective, if they register with us, they know we’re secure, we have a balance sheet, and we’re delivering.
So suppose somebody gets a license and they have no cash. And you register as a patient, and then they go bankrupt. Who’s running the facility when it’s being bankrupt to look after that marijuana that’s being grown? And so I think there’s a practical point where you want to have enough that the market that can sustain them all and they live and operate, because it would be in no one’s interest to see them fail. And so I like where we are, and I like that there’s been a pause, for whatever reason.
James West: Okay, and finally Bruce, you last raised $15 million – I think that’s the correct number. Do you have more expansion plans, or do you think you’re good for now with the Niagara-on-the-Lake facility, and if you do have more acquisition plans, what is your capital raising plans going forward in the next year?
Bruce Linton: We finished June with about $12 million on the books, and it seems like it’s sufficient to build out what we want to build out. We don’t currently have an acquisition intent because we have a lot of production capability now, and what we’re focused on now is market education and client acquisition. So I think we’re fine. And we’re finding now that the Tier 1 lenders are coming around, so anything that we might be interested in would be to take the equity that we’ve tied up in real estate and leasehold improvements, and roll that over into some debt, so long as it was single digit, reasonable covenant-type debt. And then you’d have more cash out rather than selling a share so you can build a wall in a room.
James West: Okay Bruce that’s very informative. Certainly you are the company that every other one compares themselves to, so thanks once again for your time and we’ll catch up with you again in another couple of quarters.
Bruce Linton: Well thank you. I’m certainly glad we used Tweed as a name. It’s certainly is an easy one for people to point out and compare to.
DAT Volume.
Vol / Avg. 101,715.00/114,639.00
We will break average today and three trading days in a row points to a good trend for longs.
I noticed =)
It's amazing that 40k dollars can pump this up and hammer it down.
If you are a long (long term) investor in this, like I am, we will eventually be talking about these days like a distant memory. When our average volume reaches double/triple what it is now.
If all the states pass their respective votes this will create a whole lot of pressure to the federal government to at the very least allow MJ for medicinal use.
I was reading these two articles this morning.
Marijuana Legalization Supported By A Growing Majority Of Americans, Survey Shows
http://www.huffingtonpost.com/2014/09/03/marijuana-legalization-support_n_5760462.html
Employers Can Fire You For Using Marijuana, But Brandon Coats' Case Could Change Everything
http://www.huffingtonpost.com/2014/03/24/brandon-coats-dish-network_n_4762502.html
The pressure is on. The federal government will either act on its own or be forced to act by the courts.
Well the U.S. has mid term elections this NOV and a good number of states are voting on legalization of some form. Recreational or medicinal. I understand this is a Canadian company but markets are often influenced by world happenings as these are indicators of sentiment and growth. We are a global economy.
The idea of coarse is if enough issues arrive from state legalization the federal gov must act and create rules and regulations for the sector. In-effect forcing MJ to be reschedule.
The Can gov has export and import rules in place and once the U.S. can do the same you will see a largely positive market reaction. Frankly, of all the MJ plays available, the Canadian market has the safest ones. OTC are inherently dangerous even if you find a good company.
I am of the same opinion but that being said, I will not be discouraged if it doesn't happen. I would love to see (3)three continuous days of higher volume. Hopefully we get it today.
The news cycles and attention are beginning to turn to MJ again.
This is great news for MJ and for patients.
Finally, Some Hard Science on Medical Marijuana for Epilepsy Patients
http://time.com/3264691/medical-marijauna-epilepsy-research-charlottes-web-study/
A groundbreaking clinical trial may provide some answers to medical marijuana as a seizure treatment
For years, some parents have turned to medical marijuana to treat their children’s debilitating epilepsy, crediting the drug with dramatically reducing seizure activity. A groundbreaking clinical trial about to begin recruiting test subjects may finally provide some science to back their claims.
In what is believed to be the first study of its kind, researchers at the University of Colorado Anschutz Medical Campus will study the genes of those with a kind of epilepsy called Dravet Syndrome who have been treated with a strain of medical marijuana known as Charlotte’s Web. The study will attempt to determine if specific genetic components can explain why some epilepsy patients see positive results from ingesting Charlotte’s Web, while others do not.
The plant, grown by five brothers in Colorado through a non-profit organization called Realm of Caring, is low in THC, the compound that produces marijuana’s psychoactive effects, and high in CBD, a compound believed to reduce seizures in those suffering from certain forms of epilepsy. It is administered to epilepsy patients, including many children, in the form of an oil. The plant is named after Charlotte Figi, a young girl who was the first epilepsy patient successfully treated with the strain.
While anecdotal evidence suggests Charlotte’s Web can be highly effective in treating such conditions, scientific investigation of the product has been stymied by federal drug laws that severely limit marijuana research. Edward Maa, the principal investigator of the Charlotte’s Web study, says the new trial could be a first step toward building a body of research on how and why medical marijuana can be used to treat epilepsy. “This is the first attempt to get the information people are interested in that is observational in nature,” says Maa, an assistant professor at the CU School of Medicine and chief of the Comprehensive Epilepsy Programs at Denver Health.
The new study will recruit epilepsy patients who have already taken Charlotte’s Web. The patients will be divided into two groups—those who have seen seizure activity reduced by at least 50 percent on Charlotte’s Web and those who have had less dramatic or no results from taking the marijuana oil. Genetic analysis of the patients in both groups will then be performed in hopes of discovering what genetic components may cause a patient to be responsive to medical marijuana.
Interventional studies, in which patients would be given Charlotte’s Web to measure its efficacy, are far more difficult to conduct. “That would be the Holy Grail,” says Maa.
Still, researchers on the CU Anschutz team will collect data on dosages used by patients in the study, for example, which could allow for further research down the line. “The more data we are able to collect in a large sample, the closer to the truth we will get,” says Maa. He says the study could allow children with Dravet Syndrome to be genetically screened before taking Charlotte’s Web so parents could know ahead of time if their children would benefit. It’s possible to conduct the study in Colorado because Charlotte’s Web is grown there legally and is home to many families who have moved to the state to specifically to access the marijuana strain.
“Do you uproot and move your entire family to not have an effect? I think this could be very helpful to answer this question,” says Maa.
Recruiting for the new study will begin within a month and data will be collected until February 2016.
Check out TWMJF. perhaps traders from the states are starting to look across the boarder.
Todays
Vol / Avg. 25,034.00/15,506.00
Yesterdays
Date Symbol Short Volume Long Volume Total Volume Short%
2014-09-04 TWMJF 3100 8300 11400 27
That was indeed a good close.
HOD and with 20k more shares above the volume average.
I hope we keep this volume increase moving into the close of the year.
Red days and Green days are inevitable, right now my goal for the stock is to stop seeing flat and straight lines when looking at the chart. That only happens with more volume.
I suspect we will have another pot bubble form. With emerging sectors it all becomes cyclical. You can make a whole lot of money if you time it right.
The green rush of 11'-12' made me some nice change. 12'-13' made me a whole lot more. 13'-14'? Guess we will find out.
Happy weekend everyone. =)
What is unhealthy is when I look at a board and see 5 out of every 20 posts being deleted.
Absolutely a good observation but nothing to be concerned about as the OS/AS has not changed and doesn't look like it will change in the near term.
This is mostly an issue of volume. If you like you can reference my past posts to just how easily this stock can be swayed. On an average day you have a little over $200k exchanged between buyers and sellers. 200k is chump change in the market. Once we have real buying pressure, a whole lot more volume as well, then longs will have some fun.
We broke our avg daily volume again. This is a good sign if it continues through end of day.
Fingers crossed, horse shoes over doors, rabbits foot, four leaf clovers, prayers to deity of your preference, ext ext ext. lol
Edit* don't believe in any of that stuff? Then just do whatever you do and go on with your day, lol.
It's been trading within the channel for a good three months. It's difficult to say why, I've been vocal that it's simply an issue of little interest by the market. MJ stocks have been plummeting for the most part for that same time period so it makes sense that Tweed would be hanging around this area. At least it makes sense to me.
I wonder if you could elaborate your comment about 'endless shares'. I would hardly call it endless shares, no new shares have been introduced to the market. In other words, no dilution.
Not that I agree that there is 'buying pressure', but your comparison isn't exactly apples to apples.
That being said, I do think there might be a momentum shift building in the form of what seems to be slighter higher than average volume on the buying side and overall volume.
This could totally be a fake out, but it's worth mentioning and watching.
Volume looks aggressive on the buy side again. More so than yesterday. Let's see if we close higher than usual volume again. This may be the start of the reversal, I hope.
That's a good question, I'll see if I have some time to research it later. That being said, buy volume has broke avg volume. If we have a strong close this will bode well.
That's exactly it.
Big picture thinking will always rule over instant gratification.
Today is a perfect example of what I have been posting as it pertains to the PPS movement.
While the volume is still not what I want, it helps illustrate what will happen once the market becomes bullish on Tweed or the industry in general.
With just 198,000 dollars traded buy/sell we are up over 5%.
*edit*
I should add that I sincerely believe Canada will rule this industry. They are light years ahead of any other country.
That's a bit extreme way to look at the resignation although I understand the emotion behind it. He is now on the board of directors. This is not an usual thing to happen. What is unusual was the time frame but it hardly means he ran away with the shares. They were always his to begin with CEO or otherwise.
Tweed has thus far executed and exceeded what they tell us they are going to execute on. I'm holding my final judgement until I have all or most of the facts which mostly relies on who they end up replacing him with.
I'll believe this PPS move if we break nicely above our average volume. I'll admit L2 has some curious buying action though. This mornings pre-market action was unusual as well.
Please read the landing page and the sticky.
Good morning.
http://www.thesudburystar.com/2014/09/04/liberal-cfo-a-pot-multimillionaire
MONTREAL — Liberal Party of Canada CFO Chuck Rifici has become a multimillionaire in just a few months thanks to his stock-traded medical marijuana company, QMI Agency has learned.
Documents show Rifici's initial investment in Tweed Marijuana Inc. has so far sprouted into an $18-million bumper crop.
Rifici co-founded Tweed and served as its CEO until he resigned on Aug. 27. He remains on the company's board.
According to financial statements, Rifici's fortune exploded after Tweed's initial public offering in April 2014, when it became one of the first to sell legal marijuana under a new Health Canada licensing system.
Rifici obtained some of his shares directly and other shares were purchased at 89 cents each. Tweed shares are now worth $2.36, a 95-fold surge in value, and the company's value is $ 95 million, according to Bloomberg. This sets the value of Rifici's shares at $ 21 million.
Tweed's net worth has fluctuated between $20 million and $100 million since the IPO. With Rifici owning a 22.1% stake in the company, his shares were worth between $4.4 million and $22.1 million, according to financial documents.
Rifici, a Franco-Ontarian, is a staunch supporter of Justin Trudeau, who has advocated that marijuana be legalized.
"I like his ideas, I'm not hiding that," Rifici told QMI earlier this summer at Tweed's factory in Smiths Falls, Ont.
Health Canada says the number of Canadians using medicinal marijuana is expected to rise tenfold over the next decade, to 450,000 people. The market could be worth $1.3 billion by 2024, the department says.
"We'll have to meet this demand," said Rifici.
His is one of just 13 companies with licences to legally sell pot.
Tweed grows its pot in the town's old Hershey chocolate factory. A police station is right across the street.
Although the marijuana is officially used for therapeutic purposes, marketing is very prominent in Tweed's sales pitch.
The Tweed logo is front and centre on the company's website, which also features branded pot products with names such as Weaver, Bogart and High Lands.
In an Aug. 27 news release announcing his resignation as Tweed's CEO, Rifici said he was stepping down "to help the company recruit a CEO with the skills and experience to take Tweed to the next level of expected high-volume and rapid growth in this aggressive market segment."
Rifici and the Liberal Party were not available for comment as of press time.
Medical pot smoke and mirrors, say doctors
Despite a very lucrative business and a very aggressive marketing, the Canadian Medical Association said in a 2011 position paper that it has "concerns about the lack of evidence on the risks and benefits associated with the use of marijuana."
Quebec's College of Physicians went even further in a directive to its members in April, saying "the use of dried cannabis for medical purposes is not a recognized treatment."
The Quebec professional order recommends its members exercise extreme caution before prescribing the drug.
Health Canada says it allowed companies to legally produce marijuana because the old system, where patients grew their own pot, had spiralled out of control. There were reports of infiltration by organized crime as well as sick people selling pot to healthy buyers.
In 2013, the last full year under the old system, licensed patients were consuming 17.7 grams of pot per day even though it's believed they only needed between one and three grams daily.
"The courts forced us to accept the use of medical marijuana," said Health Canada spokesman Sean Upton.
He points out that according to current research, marijuana is "bad for health" and that its use should not be encouraged.
Watchdogs' joint warning about 'green gold' rush
In June, Canada's securities regulators urged investors to be careful about pouring their money into medical marijuana stocks.
"Just the announcement of intent to develop a medical marijuana business has resulted in an immediate rise in a company's stock price," said the statement by the Canadian Securities Administrators (CSA). "The CSA is concerned investors may face financial harm by purchasing such shares at an inflated price before there is a viable business."
History of medical marijuana in Canada:
1999: Health Canada allows individuals to possess marijuana or grow it in limited quantities for medical purposes.
2001: An Ontario judge rules the ban on marijuana possession is unconstitutional unless it includes an exemption for medical marijuana. Health Canada introduces a regulatory framework.
2002-2013: The number of licensed medical marijuana smokers rises from 477 to 29,888.
2014: Health Canada introduces new system that restricts medical marijuana sales and production to commercial, licensed producers.
SEE: POST 7644
I'm happy to discuss your questions openly as it is related to the Tweed boards and how they are moderated.
I'll answer your questions in order:
What are the moderators doing here???????? Lots of investors here have complained about AWESOMESOUND!! That guy is not even an investor of tweed... Or neither he talks anything to do with tweed.. WTF MODERATOR ACT ABOUT THIS... I invest here and also pay to see what other investors think in relation to TWEED., not to be seeing a dude constantly complaining about HC and nothing else!
Space Bomb is a really good strand. Great for pain management and stress relief all wrapped into one.
LOL, love the analogy. You are absolutely right though. The stronger the consolidation period the bigger the explosion. Of-coarse this goes both ways, up and down.
Company has been quiet on the social media front since earnings. I'm waiting to see when the 'Tweed Farms' video is completed and released. No that I expect news every week mind you. =)
This lull period for stocks makes for a sleepy time. lol
I'm not worried with the volume as it is. $82,000 traded today thus far. It's barely a sneeze. When I was watching the L2 this morning I watched $10,000 dollars bring it up to HOD and $10,000 bring it down to LOD. It's just easily manipulated right now.
It doesn't do our board any good to simply keep saying $17, at least not without reason. I enjoy your diligence when you post substance so let's help promote a clean board. Thanks. =)
I'm not ""making" it about "me" =)
Your quote "My genuine guess is i am long more shares than most on this board."
Most could imply anyone. lol why even take the negative tone? We are on the same side, just different views of it.
Woah, that's interesting. Nice find.
My genuine guess is i am long more shares than most on this board.
And i am genuinely disgusted by those on here who act like tweeds capacity guidance is the same as giving financial guidance.
Yes or no? And if they have given revenue guidance (specifically using the word revenue and not capacity) pls guide me to those statements/quotes!
can YOU or tweed Guarantee that that capacity will be sold? Of course not!
Let me put it another way, if tweed builds capacity and have soo much confidence in that capacity (ie to convert it fully to sales) then why DONT they give financial guidance? The reason they dont give guidance is because they DO NOT have ANY degree of certainty that that capacity will convert to sales. If they did, as soon as they built it, they would give specific sales/rev guidance
Actually, bedrocan ca more or less addressed this. They mentioned selling 50% capacity of their canadian facility they will be profitable. And that facility i think is roughly 60thou square feet. So you can get a rough idea of tweed from that.
I have full confidence tweed will reach profitability next yr. the question for me is: will that profitability and growth rate justify a 100 mill market cap? To me the market right now is valuing tweed for 2-3 yrs into the future, ie future potential. Which is normal for a nascent or emerging industry. But eventually the business model matures and you are valued based on expected Next yrs earning. But i dont think the market cap is unreasonable. For ex, If they make 3 mill next yr and the market assigns that a 30 pe, that is 90 mill mc. If they make 5 mill next, 20 pe, equals 100 mill mc. The problem is they just took in 188thou rev for 2 months and no profit, so it is a long long way to go to get to 2-3 mill in PROFIT.
And on top of that tweed is giving no revenue guidance. They just guide toward capacity
and then the bulls on here act like capacity will automatically become rev. But sophisticated investors will never fall for this.
You may be right but I would prefer to stick with Tweed's official outlook. Mind you that I will update the sticky as more information becomes clear. For example: Tweed may inform investors at some point that their average increased from 7 to 9 and will continue to do so. At that point I'll update it.