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.
Totally hilarious, SHWZ has to be one of the most undervalued stocks in the entire stock market not just the cannabis sector and the stock can't generate more than 600 shares of volume almost 20 minutes into trading.
Just going to be more fun when the future news hits and then they come running after this stock. The potential upside gets more intriguing everyday. Can't wait to see what the future brings.
Here is another article about undervalued cannabis companies. While SHWZ is not highlighted as the main focus in the article, they are mentioned about being undervalued and a potential takeover candidate.
https://assets.website-files.com/5da7e7a83e54881821d857c6/60c104389b7269c0544262d5_Undercovered%20(6.3.2021).pdf
Potts, good to have you back. Missed you around here.
I don't think it is very likely to see any kind of substantial selloff coming due to all the buyers around especially INTL.
We have a solid base here now. We could run in a sideways motion here for a bit because the cannabis sector stocks aren't doing much of anything. Dye has pulled off some incredible deals but without much of a unexpected "pizazz" announcement, I see just a very slow gradual appreciation of the stock price until the next earnings report. Now if the FEDS make cannabis legal or Dye makes a surprise acquisition/announcement, then we could really be off to the races.
Now if the REDDIT stocks start taking a substantial hit (and they should due to evaluation fundamentals), then we could see renewed interest in SHWZ because the naked short game will be over in those stocks and traders will be looking for true value plays which SHWZ is a really undervalued stock. Kind of interesting to see a substantial short position in SHWZ now which should help with some ignition power if we get a surprise announcement.
Anyway, glad to have you back aboard the SHWZ train!
Got to take out the $2.60 seller and break the $2.62 mark to get a good chance for a substantial move.
Definitely have good support here with all the buyers.
I think something is happening also but time will tell.
My thought is the big offer was to drive the price a little lower so the insiders can price their options/warrants lower to buy the stock in the future. Not many people are following this stock and a big offer will scare some from buying the stock currently to suppress the price until the options are priced.
I believe with the launch of the new Southeast Edibles flavors/health chocolates is a great sign that things are going well. On the other side it adds to company expenses by creating additional SKU's and the insiders will have to put up more cash (as stated/suggested in the last earnings report) so the reason to price the options/warrants. This is just a guess on my part but it is the only reason I can come up with since you are right about the interest at higher prices a few months ago and now nothing.
I think we will see some interesting company announcements in the next 3-6 months projecting good times ahead.
Drugdoctor, thanks for the great find of that video. That puts everything in a simplistic description so everyone can understand what is happening with SHWZ.
Look at TWITTER cannabis posters
@TREK_broker
@JSCaldwell2
They have both started to post about SHWZ regularly. They do some good due diligence it appears.
I just saw there is some chatter on Twitter about SHWZ has plans to becoming a MSO. So maybe my thesis isn’t so far fetched. Just wanted to keep all of you informed.
damAcon1, thanks for some great comments and research. There are some excellent points stated.
Now to make my point and this is just a personal observations. How many states does it take SHWZ to make a multi state operation? Just one and SHWZ has the perfect setup with Oklahoma an adjoining state and has the most Starbuds stores outside of the Colorado operations. While it is still currently a crime under Federal law to transport cannabis across state lines (even if both states have made cannabis legal), SHWZ could acquire those locations and the Oklahoma supplier location for those stores. Dye could then send one of the top personnel to help oversee the operation and then SHWZ will have its footprint on being a MSO. The person overseeing the operation could still operate out of Denver and drive down occasionally to Oklahoma so no need to set up some kind of headquarters there.
I am probably the shareholder with the longest tenure on this chat board owning this stock. I bought some shares (not many back then) right after it went public and have never sold out. I have traded some shares from time to time but mostly just been accumulating and accumulating. Now the changeover in leadership of SHWZ makes it my core holding and I know it will bring a huge return so I am not planning to sell anytime soon.
Dye and his team have been doing a fantastic job and they sure get my kudos for a job well done. But this stock needs something (pizazz) to get it on many of the big guys radars. Becoming a MSO would help that even if it is just a two state operation.
I feel my thesis has some merit that could work and not be a major expense. I am throwing out ideas and who knows but maybe Dye reads this chat board occasionally. If he did, he would see that we are a educated, thoughtful and concerned bunch of shareholders that has the best interest of us and the company at heart.
I am not being an armchair CEO but I do have 30 years of finance/stock market work background along with having 10 years experience in two international logistic companies so I understand domestic and international commerce. I am not saying I have the total experience of a Justin Dye, but I am not spewing unreasonable ideas.
I have been a patient shareholder and will continue to keep my faith in Dye because he has the track record of being one of the best.
Yes I am frustrated because I am sick of seeing companies like GME and AMC skyrocket and their real stock value is $$$zero! I am not a believer in posting on other chat boards to promote SHWZ but I give Drugdoctor credit because I can tell he is tired of not seeing this stock move and he has been a shareholder for a long time. So he is doing everything possible to get SHWZ the visibility it needs. There are a few others who do it occasionally and I thank you too. It is just not my style but I applaud all of you for it.
I post my ideas here to create interesting conversation and to stay engaged. My ideas and thesis might not be of value to some, but I appreciate all comments whether you agree with me or not
Wishing everyone a great weekend!
I think maybe I didn’t explain my reasoning properly or it was misunderstood but Ruden is the one to start the Starbuds brand I believe. So all the Starbuds began with Brian Ruden helping opening all the locations somehow along the way. With Ruden onboard SHWZ, I believe he was the catalyst to bringing all those Colorado locations into the SHWZ fray.
So my thought was that those other state locations and Jamaica would welcome to become part of the SHWZ family especially if Ruden urged them to do it at this time even at a discount because of the potential that SHWZ brings to the table.
Dye is leading this show for sure but we wouldn’t have gotten Starbuds with Ruden coming onboard.
If someone has something otherwise to dispute my thesis, I would appreciate a correction because I don’t want to post misinformation.
Dye has done an incredible job of growing SHWZ in Colorado but I agree and have been saying it for a few weeks now that Dye needs to go the MSO route and getting those few Starbuds locations in the other states and Jamaica onboard would be a cheap way to get it done.
I believe any discussion on just one location in an MSO fashion will get the stock really moving but if he and Brian Ruden could get all of them to become part of the SHWZ team, then the stock would double immediately and put SHWZ into the conversation of being a big player.
Just my opinion
I know but it when you look at the stocks they have been going after, those stocks are not in good shape financially.
It would be great if they did come after SHWZ, with the low float it would be $100 in a heartbeat.
We can only dream......
And AMC is starting to get crushed like it should
Because the REDDIT crowd only likes to go after companies on the brink of bankruptcy
Railrider, it is frustrating but the market always finds a way to come to its senses.
Right now the market is in a insane mode by these REDDIT/Wallstreetbets stocks but many will get hurt badly sometime in the future. Many of these young traders never lived through the early 2000 internet craze but a great many of those companies went belly up and people lost almost everything.
There is no way AMC or GME are worth what their stock prices are but the shareholders are convinced they will screw the shorts. If the short seller holdings reports show dramatic reductions in short sellers of those stocks, those stocks are going to crater dramatically. It worked one time with GME being somewhat legit, but who is stupid enough to think the short holders aren't going to cover quickly after experiencing what happened in GME the first time. AMC has traded its entire 500 million share float at least 3 times in the past 3 days. Just think of it this way, the entire USA population is approximately 320 million people (about 160 million are legal adults, half are kids) so that would mean that every adult in the USA has bought and sold AMC ten times in the past 3 days.
Something to keep in mind, when someone is illegal short selling the SEC doesn't have the real time data and information since the sales aren't listed sell short so when those short sellers buy back their positions how do you know they are covering? You don't, it is just an educated guess. The firms that allow the illegal short selling aren't going to say that the buy orders were for short sell covering because it will prove their negligence and fraudulent activity.
So it is a guessing game and the only possible evidence is if the financial firm holding the short seller account reports that a big customer had a dramatic loss in their account. When you are in a bull market like this, the only one taking big losses are short sellers.
Just some industry thoughts to ponder while we wait patiently for our SHWZ holdings start to rise.
While we sit here and put our hard earned money into a viable profitable company (SHWZ) that can't even get a $.10 cent move, we watch a bankrupt company (AMC) that isn't even worth $1.00 a share soar to above $60.00.
Reading the chat boards for AMC can be a horrifying experience with the lack of education those shareholders have. I am praying to see a updated short sellers list in AMC to have around 5 million short shares or less and watch the stock tank badly. This isn't going to end well for a great majority there, it is just a matter of when. For all those that have made a good $$$ there, good for them but these nuts are thinking it could go to $1,000 a share. Just insane! We need this insanity to end so investors can get back to real stock picking in real companies like SHWZ.
SHWZ shareholders will have their day soon. This acquisition deal yesterday was masterful by Dye. I am trying to figure out how he is pulling off these deals at the prices he is getting them done. All these other cannabis companies appear to be paying enormous premiums to make deals. The only thing I can come up with is that Dye is convincing them that the rate of their return will be much greater when SHWZ reaches its full potential then to take a deal with someone else and that being their maximum return. Heaven knows that Dye and this management team are proving themselves to be the tops in the field.
We have a great bunch of shareholders here and the dirt digging and fact findings happening here are tremendous. We need to stick together and keep working to get the correct information and seize the day when our holdings are worth $$$$ millions too and well deserved because we invested in a real profitable company, not a piece of garbage.
And a half million shares on the ask at $.18 so now we know why it was heading downward.
If the insiders are about to invest more money in the company, I wouldn't be surprised to see the price drop so they can price the shares lower for the insider investors to maximize their future profits.
The Southeast Edibles division is coming out with 6 new flavors this month aimed at different health issues for which says to me that things are going well. Check out the Southeast Edibles website for more details.
It is very frustrating to see the stock price languish currently but this company is so far off anyone's radar (except you and me). It is just a matter of time before it gets discovered. But for right now, we have to sit and wait it out because of the low float it could rocket at any time.
SCHWAZZE BUYS SOUTHERN COLORADO GROWERS
Cannabis Growth Operator, Schwazze, Announces Agreement to Acquire Southern Colorado Growers
Canada NewsWire
DENVER, Colo., June 1, 2021
Acquisition will substantially increase Schwazze's vertical integration and cultivation capabilities; provide major boost to wholesale supply of distillate to Colorado CPG manufacturers
OTCQX: SHWZ
DENVER, Colo., June 1, 2021 /CNW/ - Schwazze, ("Schwazze" or the "Company"), announced signed definitive documents to acquire the assets of Southern Colorado Growers ("SCG") in Huerfano County, Colorado. The proposed transaction includes 34 acres of land with outdoor cultivation capacity, as well as indoor, greenhouse, and hoop house cultivation facilities and equipment. This planned purchase continues Schwazze's expansion in Colorado and, is the company's first major move into cultivation, which will provide high-end, premium cannabis directly to its Star Buds dispensaries and significant production of biomass for its PurpleBee's extraction and manufacturing facility. PurpleBee's is Colorado's largest supplier of wholesale distillate for the CPG market, providing quality distillate to leading vaporizer, concentrates and edibles companies.
The consideration for the proposed acquisition is $6.8 million for the business and $4.5 million for the real estate and farm assets. Total consideration of $11.3 million will be paid as $5.9 million of cash at closing and $5.4 million in Schwazze common stock at closing.
After closing, Schwazze has major expansion plans for SCG which includes the buildout of additional hoop house facilities over the next four quarters. SCG produces premium flower with approximately 30 strains and has won multiple Connoisseur Cup awards for select strains in 2020.
"This is just the beginning of our foray into the cannabis cultivation space. We believe our partnership with a premier cannabis cultivator such as SCG will provide our customers with premium quality flower in all of our 17 Star Buds Colorado locations. In addition, this acquisition will dramatically increase our capability to produce a significant amount of biomass for our Purplebee's MIP which, in turn, benefits the entire cannabis industry throughout the state. As a result of this net add to our vertical integration, the acquisition of SCG is expected to provide a healthy positive margin impact for Schwazze," said Justin Dye, Schwazze's CEO.
The acquisition is expected to close in Q3 2021, subject to closing conditions and covenants customary for this type of transaction, including, without limitation, obtaining MED and local licensing approval.
About Schwazze
Schwazze is building the premier vertically integrated cannabis company in Colorado and plans to take its operating system to other states where it can develop a differentiated leadership position. Schwazze is the parent company of a portfolio of leading cannabis businesses and brands spanning seed to sale. The Company is committed to unlocking the full potential of the cannabis plant to improve the human condition. Schwazze is anchored by a high- performance culture that combines customer-centric thinking and data science to test, measure, and drive decisions and outcomes. The Company's leadership team has deep expertise in retailing, wholesaling, and building consumer brands at Fortune 500 companies as well as in the cannabis sector. Schwazze is passionate about making a difference in our communities, promoting diversity and inclusion, and doing our part to incorporate climate-conscious best practices. Medicine Man Technologies, Inc.(SHWZ) was Schwazze's former operating trade name. The corporate entity continues to be named Medicine Man Technologies, Inc.(SHWZ)
Schwazze derives its name from the pruning technique of a cannabis plant to enhance plant structure and promote healthy growth.
Forward-Looking Statements
This press release contains "forward-looking statements." Such statements may be preceded by the words "plan," "will," "may,", "predicts," or similar words. Forward-looking statements are not guarantees of future events or performance, are based on certain assumptions, and are subject to various known and unknown risks and uncertainties, many of which are beyond the Company's control and cannot be predicted or quantified. Consequently, actual events and results may differ materially from those expressed or implied by such forward-looking statements. Such risks and uncertainties include, without limitation, risks and uncertainties associated with (i) our inability to manufacture our products and product candidates on a commercial scale on our own or in collaboration with third parties; (ii) difficulties in obtaining financing on commercially reasonable terms; (iii) changes in the size and nature of our competition; (iv) loss of one or more key executives or scientists; (v) difficulties in securing regulatory approval to market our products and product candidates; (vi) our ability to successfully execute our growth strategy in Colorado and outside the state, (vii) our ability to consummate the acquisition described in this press release or to identify and consummate future acquisitions that meet our criteria, (viii) our ability to successfully integrate acquired businesses and realize synergies therefrom, ({ix) the ongoing COVID-19 pandemic, * the timing and extent of governmental stimulus programs, and (xi) the uncertainty in the application of federal, state and local laws to our business, and any changes in such laws. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Company's filings with the Securities and Exchange Commission (SEC), including the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SEC's website at http://www.sec.gov. The Company assumes no obligation to publicly update or revise its forward-looking statements as a result of new information, future events or otherwise except as required by law.
View original content to download multimedia:http://www.prnewswire.com/news-releases/cannabis-growth-operator- schwazze-announces-agreement-to-acquire-southern-colorado-growers-301302746.html
SOURCE Medicine Man Technologies, Inc.(SHWZ)
View original content to download multimedia: http://www.newswire.ca/en/releases/archive/June2021/01/c1287.html
/CONTACT:
Investors: Joanne Jobin, Investor Relations, Joanne.jobin@schwazze.com, 647 964 0292; Media: Julie Suntrup, Schwazze, Vice President | Marketing & Merchandising, julie.suntrup@schwazze.com, 303 371 0387 Copyright CNW Group 2021
(END) Dow Jones Newswires
06-01-210630ET
These are numbers that will get Schwazze noticed. These figures are from someone who got them from "Newcannabisventures.com". I can't find the link because I believe you need to be a premium member to view. These are based on USA cannabis companies only.
Q1 Cannabis Revenues
Quarterly Sales:
1. $SMG $363.8m
2. $CURLF $260.3m
3. $GTBIF $194.4m
4. $TCNNF $193.8m
5. $CRLBF $178.4m
Q/Q Growth:
1. $SHWZ +143%
2. $GAEGF +68%
3. $JUSHF +67%
4. $GRWG +45%
5. $FFNTF +35%
Y/Y Growth:
1. $JUSHF +594%
2. $SHWZ +504%
3. $MRMD +230%
4. $CCHWF +227%
5. $GAEGF +219%
Adjusted Operating Income:
1. $TCNNF $78m
2. $GTBIF $51.5m
3. $VRNOF $45.5m
4. $SMG $41.4m
5. $IIPR $27.7m
I know how much we love this company as many others do on this board. But you have to take the emotion out of the equation right now because it will cause you not to sleep at night.
Here is my take, all the cannabis companies are languishing right now and all are significantly off their all time highs. We got a cannabis rally when the election was over because politicians talk a good game but rarely come through especially in a timely manner. If you believed this administration, cannabis would have been legalized within the first month of them taking over the government. All these politicians are full of crap and lie through their teeth. Now I believe we will get there because nothing gets them to do something more than money and there is an incredible amount of cash on the table from tax revenues that will come from legalization.
With the delay of passing any legalization at this time, many are liquidating their cannabis positions to move their money into different sectors of the market which has been showing better returns. We are back into the IDIOT stock market with the trading in the REDDIT stocks again and those companies are not worth their share price.
You have been stating that SHWZ is in accumulation mode, that is not true. Every buyer is accumulating but every seller is liquidating. Accumulation in the market means the stock is in an sustained uptrend but SHWZ goes up a bit and then sells back off. Currently we are in a holding trend while some reallocate their portfolio. I would back your thesis if the stock was above $3.00 but we can't even get there with the latest earnings report and that stings.
I really thought with that last earnings report we would be in a significant uptrend but I was wrong. Don't misunderstand, I love this holding and know this stock is undervalued and don't believe we will have an significant drop off from here.
I realize that the both of us along with quite a few others have pretty good size positions here and I would rather just wait it out because I believe the upside is enormous and will make much profit from holding and waiting it out than to try to flip many different stocks daily for smaller percentage gains. Just the way I play the game now from the old days of constantly flipping.
I am a realist and look at my holdings in a contrarian way so I don't get surprised. I am disappointed this stock isn't going up but haven't lost my optimism that good things are coming. I really believe if Dye takes a MSO route, this stock will really start to go up in a big way in a much quicker manner and be evaluated with the other major players.
Time to head out for a long holiday weekend. Wishing everyone a great weekend and think we will see some kind of reversal next week and maybe even a press release coming soon.
Ugly, someone wants out for sure!
Drugdoctor, someone believed you and is panic selling!
How is that major accumulating going? Sorry, couldn't help myself...LOL!
OTCX is playing his games again.
I know you were teasing. But didn't want to create a panic...LOL
Lazur, with the growth in the sector and the rapidly changing geographies of states legalizing cannabis, the game is changing everyday.
You have been here for a long time and reading my previous posts and I have stated that I do my homework and take a contrarian approach to my analysis to view all the options and make an investment that I can believe in. I have been saying that Dye has a plan to make SHWZ become a MSO a lot sooner than expected. Dye wouldn't even consider discussing it in previous earnings press releases and denying it and now with the latest earnings report, he discussed the subject much more than anyone could expect. Dye has an incredible track record and legacy to live up to now with what he did at Albertsons. I believe he needs to make a move soon or he will lose out to some of the bigger players grabbing up companies in these new legal states.
Now my concern is that I love Dye does his due diligence and wants every deal to be profitable and accretive to earnings (who doesn't?). But if he delays to long, there won't be many plays available to expand into new states because the big boys will gobble them up. Two things to consider, he could go after a decent size player in another state that isn't profitable but with SHWZ synergies could make that player profitable and a good acquisition. With SHWZ making a MSO move, I believe the stock price will jump significantly which will be worth it. Many of these other larger cannabis companies have floats of approximately 300 million shares or more and a higher stock price and SHWZ has only 120 million shares fully diluted. Or the other option is to acquire those Starbuds locations in the other states/Jamaica and have an immediate footprint to expansion. Those Starbuds locations have to have some kind of trademark agreement with Brian Ruden to use the Starbuds name so Ruden can use his influence to make this happen more quickly.
I am hoping that the upcoming acquisition will be something into entering the MSO field. It might not be acquiring retail locations in other states but be a some kind of provider of product in other states.
If Dye can pull off some kind of MSO acquisition and beat earnings expectations by the next earnings report, SHWZ could be in the $10.00-$15.00 range rather quickly. I have been predicting a $20.00 year end price target because I believe he will find a way to get it done and the FEDS will legalize cannabis before year end.
Just wishful thinking on my part. GLTA
Drugdoctor, that's not even funny, some here might believe you!...LOL
Wow, the crickets are loud around here so I thought I would post some observations from my perspective to keep some activity here.
Positives
1) This is definitely one of the most undervalued cannabis stocks in the market based on fundamental evaluations. Dye has done a tremendous job getting this ship turned around and has things heading in the right direction. No need to worry about the stock price dropping because it is so cheap already it is a bargain hunters dream. The only issue, do you have the patience to wait it out.
2) Dye is one of the best CEO's in the business and has all the experience to make this company an industry giant. If cannabis gets legalized on the federal level, Dye has the goods to take this product into every retailer if allowed.
3) Schwazze already is an industry giant in the second largest market in the country with California only being bigger. The Starbuds name is one of the premium brands in the industry and incredibly profitable. Schwazze will continue to grab additional market share in Colorado and will probably become the #1 company in the state.
Negatives
1) Right now there is not much interest in Schwazze's stock. The past few days of anemic volume shows that no one cares currently. No one is accumulating or liquidating but I believe that OTCX buyer/seller is flipping stock and selling to close out their current position to lock in profits (because of possible upcoming capital tax gains changes) and then buying back on other days to reestablish a position again because they know SHWZ is undervalued. OTCX is constantly doing 1,000 share lots and one day he is aggressive on the buy side and then another day on the sell side. Without any significant price movement, OTCX can pull this off currently.
2) My belief is that investors want companies that are going after the MSO route and Dye hasn't stressed the interest in doing that yet. If Schwazze stays only in Colorado, the growth rate will begin to slow down within a year's time and then the valuation compared to other cannabis companies won't hold up (SHWZ still has to catch up on valuations). If you notice all the merger/takeover deals lately are making many of the cannabis companies into major MSO's. Imagine with someone with Dye's experience decided to expand beyond the state lines. Schwazze has one of the best management teams to expand nationwide and they already have proved that in their prior business experience. If SHWZ jumped into the MSO field, they could grab up significant market share in these states since they are new to having state legal cannabis. Doing this would definitely make the stock price jump substantially in my opinion.
3) This is a big belief on my part, but I think there is still much confusion about the company being Schwazze or Medicine Man Technologies. In my opinion, the company needs to consolidate under one name. If you look up institutional/insider holdings, it is listed as Medicine Man Technologies but yet all the press releases now use the name Schwazze. So the average retail investor is getting just confused about what the company really is. For many they are probably asking, what is a "Schwazze" or is this a "medicine" company? There are many uneducated investors out there (none on this chat board) who just will jump on the bandwagon but are clueless to what this company is called and what they do. I have no idea why this name change hasn't been initiated but I don't think it helps.
In conclusion, this is still one of my favorite and most exciting holdings I have ever had and I believe we will all be very rich from it. I just hope it happens before I die...LOL. I still believe the MSO route is the key and by the tone of Dye's voice in the past few conference calls/road shows, I really believe he knows this but just doesn't want to say it yet. If he did, I think he would feel under pressure to make a MSO acquisition before he feels the cost/earnings are right. I just hope that Dye doesn't wait too long to make it happen because this industry is changing faster now with all the talk of Schumer pushing federal legalization. I have stated some of these issues in some of my past posts but now timing could be getting critical if many of the other really profitable cannabis companies get a jump on SHWZ. Let's hope this next deal we have been told is coming will be a game changer and really get the rocket ships igniting.
Wishing everyone well and hang in there. Going back in my bunker and wait for it is safe to come out....LOL
Patience my friend, patience!
As soon as the market closes, many bids and offers cancel off the screen and most go to 100 shares because SHWZ doesn't trade usually after hours and very occasionally before the opening.
Today there were 3 buyers (OTCX, CTSI and PUMA) bidding $2.59 for 1,550 shares at the close and VERT was offering at 100 at $2.62. OTCX was offering 8,000 at $2.65 up higher.
So after the close, those "signals" usually don't apply if you believe in them.
Were you able to get some of that cheap stock today on the opening?
Thanks Knife, I was a bit too overzealous and jumped on it too soon! I was confused by it all and the timing of it.
Being honest, I am a little perplexed by this 8-K and the timing of it.
I will reiterate that I think with all that talk about a future acquisition was coming, Dye decided to get this out so no chance of insider leaks were to happen and that they really wanted to wait for get all the completed 2020 financials done on these companies before putting out a press release. So by putting out these 9 month financials, we can see they look like fantastic deals.
To answer your question, from what I am interrupting from the 8-K is that these companies purchased much of their products from Starbuds that they were selling retail. So the relationship with Starbuds is what caught Dye's insight and he saw their profitability and gobbled them up.
I am heading out for awhile and hope we get some more clarity on this and see the price continue to go green.
GTSM just corrected their bid so trading should be more smooth now.
The new MJUS (US cannabis mutual fund) has upped their holdings in SHWZ from 5,284 shares on 5/14 to 9,082 shares starting this morning.
Like I stated, that is the way I am reading it at this time. Putting out the 8-K is a press release and they might want it to add to conversation on future road show conference calls. I think we will now see a slowdown in acquisitions until the share price rises to make it more lucrative and less dilutive for future deals.
I don't think Dye wanted to talk about it on the last conference call because he wants the analysts to view the numbers on earnings without adding more changing equations to the mix. Now analysts can see the numbers on the completed deals (Starbuds being done) and come up with a realistic stock price evaluation.
Now looking at the numbers which are only financial statements from Jan 2020 - Sept 2020 the combined revenues from these new deals are $13.6 million from SBA and 6 million from Kew and net profits are $5.2 million from SBA and $2.3 million from Kew. These look like fantastic deals and should add great value to the bottom line for 2021.
Maybe they wanted to get this news out in the public in the case of a leak before an official announcement about the deals and waiting to finalize a full year (2020) 10-Q for these companies to give a yearly comparison numbers to add to the SHWZ 2021 yearly revenues for projections.
I did find it a little unusual even for Dye not to come out with a more official press release about this unless we are completely wrong what this 8-K means. I can't believe it means anything else.
Hopefully we will get more clarity and a additional press release sometime this week. Just all guess work on my part at this point but it appears great times are coming.
The stock is not trading due to a locked market by GTSM which bought the opening. He has a $2.54 for 100 shares bid still in the system which is causing the trading system to lock up.
So if I am reading this right, these are two new acquisitions that Dye has been working on for months and just finalized. This is what the $5 million was set aside for according to their statements on the conference call.
Both look profitable and accretive to earnings which is great.
Looks like the stock is going to pop on the opening but lets see if it holds in this weak market today.
I would be thrilled to see the same chart action that happened in GRWG take affect here. Once it started to go, it was a nice orderly steady climb.
In Plain Sight, who's saying about a lack of liquidity? This stock is very liquid, it is just a lack of interest at the moment. That will get corrected in the near term and I agree great days are ahead. Many stocks on my screen that usually do very good volume are doing miniscule volume these days. The market is just digesting all the earnings reports and possible inflation signs.
Right now, I wouldn't be surprised to say someone could probably buy 20,000 shares at $2.50 right now despite just less than 3,000 shares showing. If we can get through the $2.50 level then I think it can have a good run to the upside.
Well I stated a few weeks ago the market is looking really strong but it needed some time to digest the incredible earnings from some of the big cap companies. The market has been doing that in this time period and the market fluctuations are just to the earnings of the stocks reporting that day.
I am still confident the market is priming for a blast off to the upside probably not for at least another 1-2 weeks.
I believe the sudden consolidation in the cannabis sector from all the deals happening will bring SHWZ into focus relativity soon. Analyst will start crunching these acquisition numbers from the newly formed deals and realize that SHWZ is one incredible bargain currently.
The lack of volume in SHWZ or the entire market in general can be depressing because we always want to see our stock portfolio rising. If we can break this $2.50 resistance today, we could see it run to the $2.70 level rather quickly.
So in the meantime, heading out on a beautiful weather day and will check back after the market close. I am not much of a golfer but maybe I should practice up to take on Drugdoctor and Future today....LOL