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Good to know. Thanks Future!
Subway sues Budway...and wins!
Rightfully so because Budway definitely had easy parallels to the franchise...but what I found concerning was that one of Subway's arguments was that you consume a Subway sandwich not only for nourishment but enjoyment. Since both companies sell 'edibles' there is an overlap validating the trademark infringement.
https://www.foodandwine.com/news/budway-subway-damages-lawsuit
Finally mentioned late yesterday by Alan Brochstein...buried in a list of news for the week:
"SHWZ plans to buy two Boulder dispensaries for $3.5 million"
https://www.newcannabisventures.com/whats-new-with-cannabis-stocks-for-the-week-ending-07-02-21/
Imteresting...a Yahoo Finance article exists but it isnt linked to the account:
https://ca.finance.yahoo.com/news/schwazze-signs-definitive-agreement-acquire-103000909.html
Benzinga posted it at 2:30pm.
I prefer your answer over my extremely verbose stream of (invalidated) thoughts.
Gee, I am obviously bullish on SHWZ and would like to tell you to do it...but really that is a decision you have to make on your own. My laundry list of reasons is based on my cannabis investing strategy and how I see the landscape unfolding. Not going to lie, but being a SHWZ shareholder is a little challenging because the stock does not garner the same excitement as the companies that are considered MSOs...regardless of whether not those MSOs actually have established operations or just hold a license. I know that I am not worried about it, I actually prefer their current SSO strategy. Now I dont know anymore or less than the next person, but here is where I differ from most: I dont see the US going federally legal anytime soon. I think if SHWZ becomes profitable (all signs pointing to sooner rather than later)...and grows their bottom line...their SSO strategy is the smart play. All of these other MSO companies are so focused on growing and keeping up with the Joneses. They are taking on debt, making overpriced acquisitions and/or paying for licenses that might take years to build out and bring in a return. They dont care because they see the current market and are setting prices at current levels. Where SHWZ differs is that they are in a well established state with limited variation in industry rules/regulations (this is serious, California bankrupted many companies with their continuously "slight" changes in regulated product packaging). SHWZ will be putting up profit in a area that is also extremely competitive. They are making profit with $20 eights. Then since you have laws at the state level, operations are seed to sale in each state. What do you think will happen if/when federal legalization happens? If it goes federally legal, interstate commerce is almost legally applied. Product will be grown where quality meets price and shipped to areas where it doesnt. Everyone agrees that when legalization happens big money will move into the industry...both to overtake the industry and to invest. I think Justin's SSO move is truly a strategic play at being a takeover candidate when the time comes. If you're Coke, Pepsi, or some major Alcohol company wanting in the industry...who would you want to buy? Would you want a major MSO, who would probably be overpriced and require even more money/time consolidating all their redundant, and no longer necessary, facilities...or would you want to pay a little less for a well established, vertically integrated, profitable company with proven industry experience and then just buy the minimum in other states allowing your main vertically integrated business to feed those locations?
Just wanting some news...some early 4th of July fireworks.
Every little bit counts! That is what I have been doing. Adding $100-$200 worth of shares every pay.
The day started strong with a 3-to-1 buy volume...but it has reversed. I blame myself. I added a little more today.
My thoughts exactly Hoop. It was old mgmt that over promised and under delivered...well couldnt. JD gets no love for rescuing the company and putting it on the right path...and not just right path but has already tripled the companies former annual revenue, on a path to 10x, and that is in only 18 months since taking over.
I get the intention of this article but I cant say I agree with the writers 'blurb' on Schwazze.
https://mjbizdaily.com/upheaval-often-follows-after-legacy-marijuana-companies-go-public/?amp=1
Yes, just looking at that. The 2.03 is VERT and OTCX has placed one at 2.13. Now I would think that was absolutely absurd but OTCX has been sitting at 2.30 for at least the last 2 weeks, when the stock was between 2.40 and 2.60. With how dry the well looked, and INTL soaking up the bid, I didnt think he had a chance of getting any 2.30s...and boy was I wrong. I might have to make sure I set some small bids up between now and his 2.13 to see if I get lucky. My real issues is whether or not I have the patience to wait...because I find myself trying to be patient but constantly jumping out of FOMO.
There it is, the "bonus plan"! They announced this a while ago...just the first time that they made it available to the public.
As for the stock comment...I guess that is where I am not as experienced as most when it comes to total compensation. I see most of the cannabis companies pay a base salary then give mgmt insane 'stock compensation'. I think I would prefer it as a payout, because then it is listed as general administrative expense, over possible shareholder dilution. Does it not make more sense to pay it out, instead of issuing stock, especially when the company has to adhere to an OTC stock cap of 250M shares. Wouldnt we, as shareholders, prefer stock be used to fund acquisitions over general administrative expenses?
MJUS deviated from their normal of adding equally to all holdings. They dropped one holding, added 4 new ones and add to/sold some from the others. This includes selling almost 16% of their SHWZ holdings. They sold 2415 shares and still hold 12786 shares. SHWZ makes up 0.45% of their total holdings.
KCSA Cannabis Virtual Investor Conference
Tuesday, June 29 - Wednesday, June 30, 2021
They just announced the line up and it DOES NOT include SHWZ. Here is the link for those interested.
https://www.virtualinvestorconferences.com/events/event-details/cannabis-virtual-investor-conference
Wow, I didn't know she was against it. I wonder if her viewpoint has changed due to operating during a pandemic? While I am not an investor, Stem Holdings has revamped their business to focus primarily on delivery. They are seeing that most seasoned, or returning, customers will elect for delivery over the in store experience. Obviously you would assume this was due to the COVID, but they claim their data shows once people find what they like, what works for them and where to get it, they dont want the hassle of traveling to a store. Side note: if you are considering investing in STMH make sure you look into their shareholder meeting, specifically the items to be voted on, set for later this month...voting to increase share count by 2.5x as well as authorizing a reverse split to be used within 1 year of approval.
AW missed out on SHWZ...he sure wasnt missing the next shiny opportunity that fell into his lap. Let's face it, all the family talk and focusing on cannabis as the God-send plant is all a ploy to get public support for federal legalization. Once legalization happens the industry will be bought out by the big boys and "family" anything wont exist. The industry might be in the early stages but it shows its true colors every now and again (paying politicians, trying to nix home grow, working with states to decide regulations that favor self interest over equity...or the consumer, etc.). Federal legalization will bring companies focused on what is good for the bottom line and protecting their revenues.
I also wonder if Medicine Mans 35000 grow site uses Three-A-Light grow methods and Success Nutrients...or if those ties are severed too. If they do, would they allow them to continue? How protected is a grow method?...and how would you prove IP? Could get interesting. Waiting for JDs move.
So funny, inward gonna type the se thing. A lot like the other side of a deal...and Google might just lead them to us. Little do they know it might end up the best dumb decision they made.
AW's comment seems like a dig at JD:
"...We are proud to be joining our businesses with Columbia Care, a true leader in this next phase of growth in the cannabis industry. Columbia Care is made up of people with family business values and has the horsepower to lead the cannabis industry into the future. We are truly excited to be part of this new team.”
Anyone else expect to see Medpharm weasel it's way into a future Columbia Care deal?
It wont stick because it is over 48 hours old.
https://www.lifesciencesinvestorforum.com/events/event-details/agenda
Virtual Life Sciences Investor Forum - June 24th, 2021
LEXX on the docket for 11AM ET.
MJUS increased all their positions by 12.5%. This added 1688 shares to their position in SHWZ. Their new total is 15,201 shares at an average price of $2.565...which is 0.54% of their total holdings, or an investment of $38,990.57 out of the $7,144,756.77 spent for all of their holdings.
Not that this applies to SHWZ, but current rumor on twitter is:
"Is the TSX close to allowing US cannabis listings"
Many sources tell me it’s very close to getting done... let’s see what journalist steals my scoop and claims it as there own.
— Betting Bruiser (@BettingBruiser) June 11, 2021
Gesundheit. J/K. Maybe it should be 'Good Morning Schwazzians'?
Check out the rest of the comments, and especially the replies, on that insta post. LOL!
The NFL says it plans to fund research into alternative pain medications to opioids, including potential studies on whether cannabis can effectively treat pain without having a negative effect on elite athletes.
The league is offering US$1 million in grants for as many as five research proposals.
I know I cant stand when a pump and dump proves they have the ability to make accretive acquisitions and (significantly) increase revenue.
I have been keeping an eye on it to see if they add equally across their holdings...or if they start to play favorites. So far (the last 3 changes) each increase has been an equal percentage across all holdings.
As for SHWZ, they walked their position down pretty good. From when I started recording the data, there price was $2.62. On June 1st it was $2.49 and as of today, $2.46.
5/14: 5284 shares
5/21: 10137 shares
6/1: 10981 shares
6/7: 13513 shares
MJUS increased their position by 23% (in SHWZ and across all holdings), since the last time I reviewed on June 1st.
Total Shares: 13513
Average: 2.46/share.
Thanks. It has 450-some views...like 130 away from our StockTwits total follower count...so it should bringing some attention to the stock. It provides a decent review of the company's 2020 annual earnings. I am trying to look at the positive side, and appreciate it for what it is, instead of stating that it has a few holes and lacks any real understanding of the company and its operations...especially its history. It definitely does a good job highlighting just how undervalued it is.
If you're bored here is the itinerary from the Benzinga Conference. If you are interested in any of the companies listed just click on "The Purple Track" or "The Yellow Track" and it will link directly to the YouTube video associated with the grouping:
https://www.yahoo.com/finance/news/benzinga-cannabis-capital-conference-june-040432390.html
The Purple Track - 3:35:45 - is the investor panel.
Thanks Hoop! I always appreciate your insight and positivity. I also share your frustration but it is easy to see that the company is heading in the right direction...so that makes it easier to absorb.
Check out that interview. Andrew says something like he feels the bigger MSOs will have to sharpen their cost cutting (to make better margins) and tune into low cost production (35min-ish). He feels a huge consolidation will happen within the industry in the next 6 months and that it is a "very flirty environment". That there is a lot of money to be made in the second tier operators, that are coming on strong, and especially with those operating well. Also, you could 2x the speed and not miss a word.
In my opinion, In the current landscape, MSO is just a flashy title. With SHWZ it will happen in time and I am probably in the minority when I say that I am fine with them not pushing this right now...and especially for the sake of the stock price or prospective shareholders. Cannabis is a capital intensive business. It is tough growing in one state let alone raising the capital to expand and build out operations across multiple states.
I was going to reply last night, but I am glad that I held off until after I heard the Talking Hedge interview with the CFO of 4Front (link below).
Last night I was going to comment that it is expensive to run a multistate operation, especially when states laws differ and are ever evolving. I was going to reference the Seeking Alpha Cannabis Investing Podcast interview with Jushi's CEO (I think around the 10Min mark) where he talks about being in multiple states and that it is a $22M annual G&A expense. Anyway circling back to the 4Front interview, Andrew Thut, is an advocate of being a multistate operator, but he will also tell you that 4Front moved too quickly into being one that they ultimately had to scale back: cut admin expenses, their multistate presence from 9 states down to 5 and hire a new CEO). They also had to refocus their strategy. He goes on to say that this new strategy was their best move. That strategy being low cost, high quality, production and the want to 'go deep' in the states that they are in. It sounds like they are preparing for when the market correction happens, and cannabis prices level out, being able to still make profit margins...unlike those overpaying to play in limited licensed states expecting never ending high returns due to the ridiculous cost per pound of cannabis in those locations.
Personally, I thought he did a really good job at articulating a lot of the (industry) thoughts floating around in my head.
Anyway, there is a lot of other "good" information in the interview...and you could speed the video up to 1.5x and not miss anything:
Excitement slowly returning back to the industry...and once again all the wrong players getting the love. It's unconscionable.
Regarding Amazon's recent statement surrounding cannabis. Looks like it might have been said to save face, due to a recent lawsuit:
"In March, a New York man sued Amazon, saying the company rescinded his job offer at an Amazon warehouse because he tested positive for marijuana, even though the city banned employers from testing job applicants for cannabis in 2020."
https://abc7news.com/amp/amazon-marijuana-testing-legal-weed-cannabis/10732833/?__twitter_impression=true
Thanks for what you do. Working on this podcast now.
Cannabis Investing Network --
#95 - Patience Will be Rewarded for Cannabis Investors (ft. Alan Brochstein of 420investor)
https://podcasts.google.com/feed/aHR0cHM6Ly9hbmNob3IuZm0vcy9jYmRmYmY4L3BvZGNhc3QvcnNz/episode/OTIyZjE0MjMtZDc3NC00ODFkLWI5OWEtYTkzNWNiZDVjMjMw?hl=en&ved=2ahUKEwiFstrWlPnwAhUJVc0KHQXHAfcQieUEegQIAhAF&ep=6
I enjoy the insight but also know Alan wont give specific companies. He is very good at walking the line when it comes to providing industry news and reserving his specific thoughts/picks to his insiders.
Sept 10th, 2020.
I found a hearing transcription that indicated the move. What was interesting was one of the commenters stated that no one location could have 2 (same type) licenses. I wonder if one will be active at this location and they will try to reroute the other to another location within Pueblo County.
Transcription
• Approval of Hearing Officer Findings and Order for a Retail Marijuana Cultivation Facility located at 428 South McCulloch Boulevard, Unit B, Pueblo West, Colorado 81007 submitted by Jag Farms, LLC.
• Approval of Hearing Officer Findings and Order for a Medical Marijuana Cultivation Facility located at 428 South McCulloch Boulevard, Unit B, Pueblo West, Colorado 81007 submitted by Terps, LLC dba Terps.
Mr. Rice stated that he does not have a problem with the Hearing Officer Findings, but he is concerned with the Order to have a 100-day window, and if the licensees can find a new premises and get everything done the non-renewal is vacated.
Ms. Long explained that the application was complex and gave further details. She stated that the Hearing Officer’s decision is that the licensees have 120 days to comply with all the requirements and submit their new, complete application. If they do not meet those requirements, the renewal will be denied.
Mr. Rice expressed his concerns with taxes not being paid and two licenses occupying the same premises.
Ms. Long clarified that that [two licenses occupying the same premises] was an oversight caused by previous decisions made within the County.
The current rules do not allow for two licenses in the same location. They are required to relocate so the licenses are at two separate locations.
Mr. Reyes asked if the landlord has locked the licensees out.
Ms. Long responded yes and gave further details. She added that if the licensees complete the requirements in 120 days, that is only allowing for their renewal application to be accepting, not granting a renewal. There is not complete application at this stage.
Mr. Rice asked what the Board needs to do to look at the licenses in regard to the payment of taxes.
Ms. Stringer stated that the licensees haven’t paid taxes since April of 2019, but she does not believe that they have been in operation since then.
Discussion occurred regarding a license being operational versus invalid.
Mr. Rice informed Chairperson Treanor that he would like to withdraw his objection to the Hearing Officer Findings and Order for Jag Farms, LLC and Terps, LLC dba Terps.
Ms. Long informed the Board that if they agree with the Hearing Officer decision, they would vote to affirm it. That would ratify the decision and the 120 days [for Jag Farms, LLC and Terps, LLC dba Terps] would start on the date of the signature from the Hearing Officer, which was September 10, 2020.
Discussion occurred.
Mr. Casaus motioned to affirm the Hearing Officer Findings and Order for Jag Farms, LLC and Terps, LLC dba Terps.
Mr. Reyes seconded the motion.
The motion carried unanimously. Discussion occurred regarding a training meeting for the Board. Ms. Robinson motioned to adjourn the meeting. Mr. Casaus seconded the motion.
The motion carried unanimously.
Let me see if I am following:
2 cultivation licenses that were behind on taxes, but not in operation, that were "moved" to the same building (but I am assuming different unit) as Star Buds Pueblo West Dispensary?