Overall excellent conference call. Of course the headline numbers will feed what will happen tomorrow because no one will read the fundamental story and we might be disappointed by the immediate reaction to the earnings.
Some observation feedback from others concerns here and my opinions...conference call for small companies like these only last 30 minutes, we went 10 minutes over that. Because of the timeline, not all questions get answered because I submitted 2 questions and none made the Q&A session.
Expenses are always going to go up when you have acquisitions and they did for sure. We also have many new outstanding staff/board members and it cost some bucks to get them to relocate and bring them on board. Quality people get better pay so it will add to that expense. Also, basically we didn't get any revenue from Starbuds in this report except for a few days, so next report should be gangbusters.
Dye basically came on board in June 2019 and it took about a year to unload some of the past staff/board members and get the company refocused and review all those past deals. Doing that takes time and expense so he didn't have the time to work on new objectives until he had done his thorough review of all them. So about the time he had that completed, COVID took over in a big way which slowed things down. The blessing (sounds horrible to say that) is because many stayed home, the cannabis industry took on a different aspect to the company and sales picked up more than Dye could have even imagined.
I have a hunch that a new acquisition is already in place but Dye wants to hold back on that so that these reported numbers can get absorbed by shareholders and the market and see where the share price goes in order to complete the deal that would probably include some shares.
One more thing about the conference call was that there were a lot of questions this time which means there is more interest in SHWZ than we realize. Normally in the past conference calls there are about 3-5 questions but this time there were plenty more and the reason we went about 10 minutes over the usual time allotted.
Of course there are many issues that can be discussed/debated about how we personally view the call because we all will have our own take on it. The one thing I want to highlight is the growing REVENUES for the company in the past 5 years since it has started trading on the OTCBB and I have been a shareholder.
2016 - $631,000
2017 - $3.5 mil
2018 - $9.4 mil
2019 - $12.4 mil
2020 - $24.0 mil
2021 - $100-$120 mil prediction
Like I said these numbers are revenues, not earnings and now Dye is predicting $100-$120 mil for 2021. That is a big jump and if I heard correctly (let me know if you heard the same or I misunderstood), $240 mil for 2022 at least. Just incredible and the company isn't even in the entire state of Colorado, only a portion. Can only imagine what Dye can accomplish if he changes his mind and goes to a MSO model.
We all want to see a rising stock price for sure, I know that I have been frustrated. But my belief in what Dye is accomplishing here is worth the wait and holding than trying to flip some stocks everyday to make a small chunk. One day (maybe the SAFE banking act or federal legalization) this stock is going to make a gigantic move (when we least expect it) and have a big gap up and start running hard. With the overall low stock float for this company, it will be hard to chase and grab some shares.
Anyway, I wish us all good fortune and patience. We will still have many discussions/banter and lets keep up the respect and humor flowing.
