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Agree it's a sleeper, but it shouldn't be. This company is very generous with guidance numbers. At the end of the most recent quarter (Q2) they reported revenue that would indicate they will report approximately $13.5M for the quarter. It could be more as new stores opened during the quarter. Their margin was reported at 35%. If my math is correct this size revenue number will wake investors right up. The smart ones are already awake. Always IMHO GLTA
Company revenue Guidance
https://www.newcannabisventures.com/national-access-cannabis-reports-canadian-retail-sales-in-excess-of-20-million-since-legalization/
https://markets.businessinsider.com/news/stocks/national-access-cannabis-generates-3-8-million-in-revenue-in-q1-2019-766-compared-to-q1-2018-1027902326
Company CEO interview
Way more exposure on a major exchange for sure. I think of the OTC like minor league baseball. You got your 1-A players (PINK), 2-A (OTCQB) & 3-A (OTCQX). Delta 9 is at the top level OTCQX one step away from the big leagues. It's like a baseball farm system for unknown companies.
Delta 9 is starting to stand out from the field with anticipated Cronos beating Q4 revenue numbers. They'll have to make those numbers official to light up the scoreboard. Personally I like finding players before they reach the big leagues, and begin demanding big league money.
That's my baseball analogy for the day. Always IMHO GLTA :)
Like this as a CBD momentum play. CBD products are hot right now. Once the new Canbiola CBD products PR's start coming out it could pop. Could be a good long play if revenues start rolling in. IMHO GLTA
Cronos should buy Delta 9 Cannabis. They could more than double their reported Q4 revenue with just one acquisition. Good acquisition for both. IMHO GLTA
https://www.prnewswire.com/news-releases/delta-9-provides-guidance-for-fiscal-2018-results-anticipating-revenues-of-7-6m-to-8-4m-300812219.html
Pretty crazy that one of the biggest players in cannabis might get their Q4 revenue bested by Delta 9. Cronos posted 4.2M in Q4 revenues. Delta 9 projects 5.3 to 6.1M in Q4. That would be wild if Delta 9 beats Cronos. Grow pod tech is producing big time revenues. Official numbers out this month!!! IHMO GLTA
https://www.marketwatch.com/story/cronos-shares-slide-2-premarket-after-earnings-2019-03-26
Fire & Flower Announces Successful Operations of its Click & Collect Service
https://www.newswire.ca/news-releases/fire-amp-flower-announces-successful-operations-of-its-click-amp-collect-service-868334882.html
Didn't know Aphria invested in NAC until I read this Seeking Alpha article today. Growers are smart to partner with retailers. Got to sell all that cannabis somewhere.
https://seekingalpha.com/article/4250814-national-access-cannabis-best-cannabis-retailer-canada
National Access Cannabis: The Best Cannabis Retailer In Canada
New Seeking Alpha article on NAC.
https://seekingalpha.com/article/4250814-national-access-cannabis-best-cannabis-retailer-canada
No one told me about the free roller coaster ride. Woo Hoo!!!
Lots of growers buying up land and warehouses in Massachusetts. Retailers moving in too. Good opportunity for east coast growth for NGW, and all small cap growers. Mass cannabis laws are pro small business. IMO GLTA
From what I've read it can take Health Canada up to 300 days to approve or deny a application. I hope that isn't the case for Liberty Leaf since they have been ready to grow since November. Some applicants haven't even started construction. Hoping ready to grow facilities get moved to the top of the list. GLTA
With the brutally cold weather in Newfoundland & Nova Scotia this winter Biome Grow may need to rethink its construction plans. Might be easier to rapidly construct large steel shells during the summer to house prefab grow pods made indoors. Then stack them like legos inside the shells. Delta 9 Cannabis is doing it and making record revenues. Cheaper & Faster. Always IMHO GLTA
News I would like to hear this week that could possibly pop this stock out of its trading range. News that Future Farm has finalized a agreement to acquire majority economic ownership of the clinics in Puerto Rico. It's on my news wish list. GLTA
Hope to hear that Pharmagreen is ready to go with financing for the Cannabis Biotech Complex this week. Alliance CEO said in February it would be in the coming weeks. Also hope to hear more on the construction progress for the Biocannatech grow operation in Quebec.
The Pharmagreen financing is out of their control as a minority partner so not much they can do to speed things up. If Pharmagreen fails to get financing Alliance could use the their capital to expand the Quebec operation to include a Pharmageen Tissue Culture Lab at that location.
Either way I'm hoping to hear something on the future direction of the company soon. Fingers crossed.
Always IMHO GLTA
Like the potential of CBD products, but not jumping on the bandwagon just yet. Lots of companies have big plans to produce CBD products for the general public.
My main concerns are the large number of manufactures that will be fighting for shelf space, and the possibility governments will ban, or highly regulate CBD use in the future. Until Heath Canada, and the FDA officially approve wide spread use of CBD I'll hold off on CBD pure plays.
I'm not too concerned with Delta 9's foray into CBD as a product for their own online store, and retail stores with guaranteed shelf space. Also Health Canada may rule favorably on wide spread use.
Then the problem becomes will big pharma jump in with mass production to under cut small CBD operators. It looks like Delta 9 is taking it slowly using inexpensive grow pod labs to get started. If the market is good they can easily expand the grow labs. If the market turns sour, change the grow labs back to grow pods.
Another stock I like, Next Green Wave, just spent $27M in shares mostly to acquire a CBD company. Personally I think it was a expensive shot in the dark with a unknown future. Hoping Delta 9 doesn't take the same expensive risks with CBD right now.
Comments always in my humble opinion. GLTA
Like Next Green Wave, and have owned it in the past. May own it again in the future.
My concern with cannabis growers in general is when they try to branch out beyond growing, and retailing cannabis flower. Concerned when big pharma gets involved in the CBD market they could price cut many small CBD product producers out of the market. After small producers have invested millions in labs.
Like NGW's cannabis cup winning genetics. Think they could slice out a nice piece of market share as premium craft growers. Leave the expensive lab work to big pharma. Recommend they sell the CBD extraction facility for a profit before big pharma steps in. Laser focus on growing and expansion. Also too expensive to build in California, and takes too long for permits and licenses. Nevada looks cheaper and faster.
Always in my humble opinion. GLTA
Good, It will be interesting to see what they say. Like that they are active on social media, but material events like new stores, need to be nationally press released. Other than that the company seems to be hitting on all cylinders. IMHO GLTA
NAC is undervalued according to analyst Dmitry Zaytsev. Agree with him that retailing will be the biggest cannabis money maker.
Also Growers with retail outlets should do exceptionally well due to end to end control of the sales cycle. Grower Delta 9 just opened their second retail store in Winnipeg with more in the pipeline.
Cannabis retailers like NAC, Fire & Flower and Delta 9, currently with licensed revenue generating cannabis stores, should have a distinct advantage over those still waiting on licenses. Health Canada seems in no hurry to grant new licenses while those with one gain ground.
Ended my position in cannabis companies without licenses, and grew my positions with those that do, like NAC, Fire & Flower, and Delta 9.
Good luck with your new position Chips ndip. Looking forward to seeing the revenue numbers soon.
Comments always in my humble opinion. GLTA
Dmitry Zaytsev: https://midasletter.com/2019/03/dmitry-zaytsev-colombian-cannabis-space-ontario-cannabis-retail-supply-issues/
Hard to understand why no PR for the store opening. Maybe the company doesn't want a run on the stock at this level. Let investors buy in higher after the official Q4 report & conference call in April. Still some moderate selling holding down runs, which could be private placement lenders selling shares.
Hopefully going cash flow positive in 2019 will end that need so the SP can rise to the level of a 30-40M dollar revenue company. I'd say $5-6 dollars would be fair market value sometime this year. Higher as revs increase after phase two completion.
Brokemon you almost got your wish today. SP was .08 away from 1.12 this morning. Nice volume again. Except for new cannabis store PR I'm still liking what I see.
Watch list material: Bought a few shares of Fire & Flower (9 cannabis stores), and National Access Cannabis (23 cannabis stores), all in Canada.
Always IMHO GLTA
Company definitely needs to hire a new PR firm. That was big news opening a new store. Today Fire & Flower announced cannabis store license news, and popped up 4% with 3x normal volume. Just from getting a license, not opening a brand new store like Delta 9. Missed opportunity. Someones not doing their job for Delta 9. Change is needed before more legitimate PR's are missed. IMHO GLTA.
Revenues should be much higher than my earlier guesstimate. On F&F's investor presentation it says they sold 10M in the first 90 days after legalization. If they continue at that pace it would be 40M revenues annually. Plus the revenues from any new stores opening in 2019. At this pace they may be able to pay for future expansion with cash flow without share financing. Like the new marketing hire to maximize in store sales potential. Squeeze out every dollar from floor space. IMHO GLTA
Surprised and a little disappointed the company didn't PR the new cannabis store opening nationally. Maybe tomorrow with pictures of the opening.
If not it will gradually drift out to those that really do their DD. Company isn't very newsy it seems, but revenues & fundamentals seem to win out in the end.
Lets try to keep it civil in here. There's just a few of us to keep each other company. When it gets crowded we can tell all the newbies about the old days when we were all alone in here. Then we can go after the shorts. They're fair game :) IMHO GLTA
Don't know why this is selling so low with 9 cannabis stores open and selling product. The largest Canadian private retail operator (NACNF) with 23 stores just reported 20 million in revenues in only 140 days.
If my math is correct that's about 174K per month per store. If F&F has similar numbers their 9 stores should be bringing in around 1.5M per month total, or 18M per year. That's a lot of cash flow to be selling under a buck.
It's not like they have a billion shares outstanding. The company last reported share count was only 102,434,413. Just seems like a bargain price to me at this level so I bought a few shares to watch. Especially with news of more stores opening in 2019.
I'll be closely watching this one. Too much revenue potential not to. Thoughts anyone? Always IMHO GLTA
https://fireandflower.com/
https://www.newcannabisventures.com/national-access-cannabis-reports-canadian-retail-sales-in-excess-of-20-million-since-legalization/
https://www.marketwatch.com/press-release/fire-flower-holdings-corp-announces-completion-of-its-qualifying-transaction-2019-02-13
https://www.newswire.ca/news-releases/fire-amp-flower-launches-e-commerce-cannabis-platform-843355190.html
https://midasletter.com/2019/02/fire-flower-cvefaf-announces-licensing-agreement-two-ontario-retail-lottery-winners/
News is out!!! Nice article on Delta 9's new store in the Winnipeg Sun. Don't see it in the national business wires yet. Sometimes they release in the morning. Big store, 3000 square feet. Like this CEO. All Business. IMHO GLTA
https://winnipegsun.com/cannabis/cannabis-business/winnipegs-homegrown-pot-business-expands-into-osborne
Delta 9 Cannabis Store Opening Tomorrow in Winnipeg. Hopefully a PR on it in the morning for more good publicity. Located in a big city it should do well. Great news for the bottom line. IMHO GLTA
Only 1 day to go until Delta 9 Osborne Village opens for business! Stop by for t-shirt giveaways, munchies and FREE laser engraving for your PAX 2 or 3 vaporizer! From 5-8 pm we'll have an outdoor performance by local DJ K Chedda https://t.co/zo5NkXA8uu pic.twitter.com/s1uhdRCtMP
— Delta 9 Cannabis (@Delta9BioTech) March 20, 2019
Looks like those stocks have been on a nice run lately. Always liked Village Farms but waited too long. New to AgraFlora. I'll put it on my watch list. Thanks
Maybe PR's will be coming when they start rolling out Delta 9 CBD products. Huge buzz around CBD these days. The Nanosphere lab is reportedly nearing completion. Lab completion PR would be good too. Show investors they are making progress. I see many more potential PR's in the pipeline. IMO GLTA
I bet they're ramping as fast as they can ramp. Fortunately prefab grow pods are like lego's, stack and grow. Hope the company releases PR's for every new grow pod they install. Joking!! That would be 450 plus PR's this year. They could update every 100 as a milestone achievement. Company needs to generate some buzz after the great numbers they just reported. Always IMHO GLTA
.
News: Canadian micro cap produces record cannabis sales in Q4. Aurora should buy!!! https://www.prnewswire.com/news-releases/delta-9-provides-guidance-for-fiscal-2018-results-anticipating-revenues-of-7-6m-to-8-4m-300812219.html
Agree. Delta 9 is still flying under the radar. Guidance news was big, but it will take time to sink in for retailers. I've seen some big buys come through, especially in Canada. Could be whales accumulating slowly not to jack the price. That's pure speculation, and wishful thinking, but possible:)
I'm guessing Delta 9 will slowly range upward until the official Q4 numbers are released along with the conference call guidance. Unless Seeking Alpha or Motley Fool put out a glowing report on Delta 9's 700% revenue increase using grow pod technology. Then it's Katy bar the door.
That's why I'm glad to be in off the sidelines. Something big could happen anytime and it's 30% higher before you can make a trade. Been there done that. Got the T-shirt. If news breaks that Delta 9 is getting acquired it's every man for himself trying to buy shares with a float this size.
A company like Delta 9 partner Canopy could buy them just to increase their top line 20M+ per quarter after D9's phase two completion this year. Thats 4.5M more than Tilray just reported.
Oh well I'm just rambling now. Suffice it to say I'm glad to be here at this point in time.
Always IMHO GLTA
Anybody watching anything interesting? Can't find any cannabis stocks I would put money on before Delta 9, or even a close 2nd.
I Like Aurora, but with so many shares it's hard to move the needle up. They traded an astounding 80M shares today, and it only moved the needle 3.4%.
Same with Supreme, 1.2M shares traded up only 3%. Runs are getting sold into hard from share based financing. Hoping to avoid that with Delta 9's low float, and 47% insider ownership.
Another low floater I like is Alliance Growers ALGWF, but they are a low volume long play waiting for a license. Currently under .10 if the license comes through it might pop.
Like their new tissue culture tech for producing disease free genetically pure cannabis plantlets on a large scale. BC facility is under construction.
Nothing exciting on my watch list until Health Canada starts issuing more licenses.
Always IMHO. GLTA
Thanks for the welcome. Long time watcher, first time buyer. Couldn't resist once I saw the revenue numbers. Loved the idea of grow pods, but waited for results. Had to pay a premium for that confirmation, but still feel like I'm stealing these shares at this level. Company talking about financing expansion with cash flow instead of shares, which is rare with micro caps. Looking forward to the new nanosphere CBD products in the pipeline becoming revenue generators as well. What's not to like. Thanks again for welcoming the newbie. Hopefully there will be many to follow. GLTA
OK so Tilray reported 15.5 million in revenue for Q4. One of the behemoths of the cannabis industry. Then there's micro cap Delta 9 anticipating revenues of between $5.3 million and $6.1 million.
What's wrong with this picture. No way should a micro be producing 30+% of Tilray's revenues. I believe it's the grow pod technology maximizing production in a small footprint.
Tilray reported a net loss of 33 cents per share. Delta 9 anticipates a net loss of only .03 per share. Tilray reports revenue up 110.0% compared to last year. Delta 9 anticipates revenue up 700% compared to last year.
Looks like the slow moving behemoth is getting smoked (literally) by Delta 9's rapidly expanding grow pod technology. With a fraction of the capital. That's wild to me. IMO GLTA
Don't think it will hit 1.12 again with the revenue guidance just released. If it does I'll be adding too :)
Investors don't realize just yet how much revenue the grow pod tech just produced with only 154 grow pods using up only 49,280 square feet.
That's a amazingly small footprint to be producing 5-6M in revenues per quarter. The phase two expansion adding 454 pods is currently in progress. That would add conservatively 15M more to quarterly revenue based on the Q4 guidance numbers going forward.
So I'm guessing 20M per quarter by Q4 2019 if in full phase two production. Expecting revenues to increase markedly as each new pod reaches production. The beauty of the grow pod technology is you stack them in small spaces, and get growing. No building some 100M dollar facility for the same square feet.
If I were a micro grower and could produce 300+K annually with one grow pod I'd buy one. The company says they are selling grow pods in other provinces now. This could be a whole new revenue stream beyond cannabis. Wonder how much they sell for. Maybe I'll move to Canada:) Getting a license is the hard part these days. 1000s are trying.
The the future is bright and green for Delta 9. Number chruncher investors will find it first. Always in this humble shareholders opinion :) GLTA
Have to agree the share count is not optimal. Then again I missed a nice run worried about share count. Think we missed our chance to get in at a reasonable price based on share count. That's old school fundamentals that don't apply to cannabis right now. Look at Tilray's SP vs EPS. Crazy. Here's a low float cannabis to watch that's still fundamentally reasonable to me. Partners with Canopy. GLTA
https://www.prnewswire.com/news-releases/delta-9-provides-guidance-for-fiscal-2018-results-anticipating-revenues-of-7-6m-to-8-4m-300812219.html
I think you're right. A good Tilray report on the high end of the revenue estimates should help all cannabis stocks. No way they even come close to ACB's revenues according to analyst estimates. Even my cannabis micro cap Delta 9 is projecting a 320% revenue increase in Q4. Now it's up to Tilray to keep the party rolling. GLTA
https://www.prnewswire.com/news-releases/delta-9-provides-guidance-for-fiscal-2018-results-anticipating-revenues-of-7-6m-to-8-4m-300812219.html
Congratulations on going EPS positive, and the resulting price rise. I'm hoping Delta 9 Cannabis does the same in Q1 2019. Current Q4 guidance puts Delta 9's EPS at -.03 with revenues increasing 300%. Village Farms & Delta 9's EPS are much better than Tilray's projected -.16 for their earning report on Monday. Hope to see you guys on the NASDAQ soon. GLTA
https://www.prnewswire.com/news-releases/delta-9-provides-guidance-for-fiscal-2018-results-anticipating-revenues-of-7-6m-to-8-4m-300812219.html
Congrats Brokemon. It didn't stay under $1 very long, and mostly on low volume days. I was watching it then but didn't buy because I wasn't sure if grow pods could produce substantial revenue.
Started buying immediately after seeing the Q4 guidance. Got my first shares at $1.15, then averaged up into the $1.20s. I'm pretty loaded now but may buy more if it dips.
Canadian investors on the CSX are buying Delta 9 pretty heavy with the share price at 1.71. I saw a 60K buy at the bell last Friday. Fundamentals still seem to matter in Canada, not so much on the OTC. Hopefully Delta 9 will be on the NYSE soon. GL
Here's another thing I can't understand. There are many. The reigning king of cannabis Tilray reports earnings on Monday. Analysts are predicting Q4 revenues of 14.5M.
How exactly does that make Tilray's share price $72.50, and Delta 9's $1.26, especially when Delta 9 is guiding a 5-6M Q4. Even at the low end Delta 9's revenues are over a third of Tilray's Q4 analysts estimate.
If only revenues mattered Delta 9 should be trading at 1/3 Tilray's price. That would be 23.93 for anyone keeping score.
There are many variables. One big one is Tilray's float is about 1/4 the size of Delta's 9's, but even if you lower Delta 9's comparative revenue value by 75% it would still be trading at $5.98. IMO
How the market values stocks is still a mystery to me. Just things I think about on a rainy weekend. Should be a interesting Monday for cannabis stocks on the Tilray earnings reaction. Hope they beat the estimates. A rising tide lifts all boats. :) GLTA
It's crazy to me that Supreme cannabis is trading higher than Delta 9. I like Supreme, but they have five times the float as Delta 9, and also have a large debt to service. If they were making five times the revenue as Delta 9 that would be one thing, but they reported similar Q4 numbers as Delta 9.
Supreme reported 7.7M in Q4, Delta 9 is guiding Q4 revenues at 5.3-6.1M. Delta 9 should be trading at 5 times the price of Supreme based on share count and relatively equal revenue.
This market isn't making sense numbers wise. Since the Q4 guidance is just out it may take time for investors to figure this out. I'll just accumulate until they do. Just my opinion of course. GLTA