TURV
From a fundamental analysis standpoint, TURV has potential if management can demonstrate from here on they can develop the company's existing assets in such a way that revenues are created that will exceed expenses. With the many problems facing the company, it's highly unlikely that any credible financial source will provide capital. Management will need to prove themselves first. Hopefully, the death spiral type financing that traded $60K for 800,000 shares, which resulted in the 2.4% dilution suffered by shareholders, won't be utilized again.
We hope, the CBD activity in Butte Valley will have some positive results and that can be reported shortly. That may be a place where a stake can be put in the ground and a solid business built from there.
The comments on this board regarding TURV water assets generally and the Cucharas Dam specifically are very uninformed. They reflect a fundamental lack of understanding about the "Prior Appropriation Doctrine" that was developed in Colorado. Just because surface water flows by a dam doesn't mean it can be used or stored. The water must be passed through the dam without impediment for users with a more senior (prior in time) right down stream. The solution, which has been known since the late 1800's, is for the Welton and HCIC to get together and put together a viable plan that benefits both parties AND can survive the very difficult water court process necessary to change water rights in Colorado. Unfortunately their history is long and the resentments deep, like the Hatfields and McCoys. If they can get together, then financing is available from many many government sources looking to improve water infrastructure.
The El Paso County assets we haven't kept up on. It seems they are being sold to pay the bills, which is understandable.
GrowCo can be a positive force for TURV if management can let go of the battle and look at potential synergies. Currently TURV has little ownership in GrowCo assets. GrowCo has headed in an independent direction and is developing new plans away from TURV. The eviction of the last tenant was a mistake. As a result of the severe decline in MJ wholesale prices over the last 3 years, there is a lot of potential in Colorado. You can buy MJ related assets for $1 that public markets value at $40. There are new entities emerging that are built around that. TURV needs to bury the hatchet and collaborate with one.
There are solutions to all of this. Management's energy needs to be revitalized, problems solved rather than litigated and confidence restored by achieving small successes first. Maybe Butte Valley CBD will do that. That would be nice. Small successes can lead to larger ones.
We wish management and the investors in here well. I look forward to the October call.
