If You don’t read articles on N I certainly wouldn’t start with Alan b who if definitely a paid actor
Thoughts here is Ohashi’s own hatchet job from 5/6 . Believe me ohashi doesn’t write this stuff for free.
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Namaste Technologies (TSXV: N) was subjected to a “hatchet job” report on Seeking Alpha that re- ferred to an 80% downside which would put the stock at $.30 per share. This is one of those reports written by someone or a group that first shorts a stock and then begins to talk it down. Of course, there’s nothing wrong with this. It’s just the opposite of someone buying a stock and trying to talk it up. For a per- spective on hatchet jobs, see ‘Cannabis, Mambas, And Bears, Oh My!’ on budapestjackson’s Blog. (here)
In this case there is part of the message worth considering. Here is a summary of the points made by Grumpy Bear Research.
$7.00 $6.00 $5.00 $4.00 $3.00 $2.00 $1.00
$-
$5.89
Market Capitalization
(billions May 4, 2018)
Canopy
$4.45
Aurora
$2.30
MedReleaf
$2.04
Aphria
$1.33
Cronos
Management has a well-documented history of failure coupled with repeated misses on their finan- cial/operational targets; CEO used to be in the knock-off purse sales business.
Management is operating in a viciously competitive/fragmented market and acquisitions appear to be the only source of growth; vape revenues declined 44% recently despite M&A.
Namaste elicits many signs of being a rollup of unprofitable companies, resulting in ceaseless dilution and mounting losses; impairments are but another red flag.
CannMart offers significantly less benefit than the company suggests; Cronos Group (a top 5 cannabis player) recently reduced its investment in CannMart to nil.
Even if CannMart gets a sales license, Shoppers Drug Mart (and other big players) will likely dominate, as they are better funded, branded and established; CannMart is already behind in the medical market.
An issue we have talked about and questioned recently is the expectation for CannMart. Initially, investors were counting on CannMart to get a license to sell cannabis that would allow Namaste to marketl cannabis over the Internet in Canada. However, the first sign of a problem with this strategy was certain provincial regulations (especially Ontario and Quebec that are Canada’s largest provinces) to require that all cannabis sold in their jurisdictions be purchased from them. Other provinces, notably British Columbia, seem to be trying to control Internet sales of cannabis. So the potential that the market was expecting has to be down- graded to a new, lower reality which explains why the share price has been under selling pressure. We have thought for several months that the market price had to adjust downwards to reflect this change. So we have not recommended buying Namaste for several months.
Unfortunately, we don’t think the market has adequately discounted the share price yet. In addition, our ex- perience is that when these negative reports surface, it is never a one-time thing. The hatchets will probably come out at least one or two more times and the stock will likely react negatively each time. For some time, we have hung our hat on the level of sales the company has been reporting. As the Grumpy Bear report points out, sales have been increasing because of acquisitions and not internal growth. So if we see sales falling in future quarters, all bets are off
My take ..that’s allot of research on a company you don’t like you don’t post earnings as they do to support stock price
And that harpoon re the market hasn’t discounted the price enough is a sign to shorter to tell them what his organization is doing.
For the record in personal discussion w ceo and Kory , Ohashi has not personally contacted this company since nov dec of 2017 to even make a diagnosis based on personal communication with them
Will he do the same for lxrp as he now is in the fill your boots crap on that company as he was in sept.
So he is a rock thrower and an elder bully in my opinion.
