A Few Thoughts on ACB
Two years ago I was in both ACB and CGC.......the two biggest of the Cannabis plays. I made an obscene profit during their insane run-ups but I saw two things which made me bail.
* One: They were valued at levels which had no basis in obtainable achievements.....EVER.
* Two: They were both hemorrhaging cash and apparently had no concept on how to stop the bleeding.
I liquidated my positions in both. Luckily it was just before the sector wide sell-off began. So I took my profits and began looking for a Cannabis play in a company which had promise. That is what brought me to Next Green Wave.
Another company in the sector which was once the darling of Motley Fool was Charlotte's Web (CWBHF). They, more than any other CBD play looked to be unbeatable and unstoppable. But they got crazy in their growth. Their overhead payroll tripled. Everywhere you looked there were executives and assistants and new cars and new facilities. They went from a company turning a nice profit to a company which was, and is still, losing money every single quarter. And yet they refuse to slash overhead.
The number one rule in business is never, ever, ever lose money. The number two rule is, re-read rule number one. If one finds that they've dug a huge hole, there is only one fix. STOP DIGGING!
While virtually every big cannabis play seems fixated on market domination without any regard to managing costs and turning a profit, NGW has been incredibly prudent with their cash. As a result they have kept their G & A expenses in check. And unlike any of the companies I've mentioned above, they turn a profit. Their growth seems to be carefully planned and tightly managed.
Profit is King. Always has been and always will be.
