Concerning today's virtual roadshow broadcast, some takeaways to consider:
1) Kudos to Dye and Huber realizing that SHWZ is extremely undervalued and trying to get the word out. I think we will be seeing many more virtual road show appearances to continue to make sure the public is aware of what SHWZ has accomplished in a short amount of time. Hopefully with COVID cases dropping, they can actually go on the road and do in person conferences which usually bring in more interested investors.
2) Great comment from Huber basically stating that SHWZ is a brand new company since March and then Dye affirming it. This is practically true since the Purplebees, Mesa Organics and Starbuds deals getting finalized.
3) Except for the possible upcoming acquisition that was mentioned in the conference call last week, I don't believe we are going to see anymore acquisitions really soon because Dye basically came out and stated that he feels the stock is undervalued and doing any additional deals with the stock at the current price will be too dilutive. He realizes that is important to get the stock price up which could have companies banging on the door of SHWZ to make a deal due to the appreciation that would be taking place.
4) The mention of possibly growing to 100 stores in Colorado states how robust the market is in Colorado and what can be achieved there. There were a few hints about the future and possibly becoming a MSO somewhere down the road but I think Dye really has a grasp that SHWZ could own Colorado in a near term time horizon before moving out of state.
5) With Curaleaf buying Los Seunos today for a total price of $67 million shows how desperate the bigger players are for growth. SHWZ's deal with Los Seunos was for $12 million and they passed on it. Now that could have been due to one of three things. In 2019, Los Seunos lost $7 million due to crop loss from weather issues or Dye didn't believe it was even worth $12 million or DeGabrielle wasn't going to do the deal because he was close to AW and Dye kicked AW out the door.
6) You can see in Dye's demeanor that his is enjoying building SHWZ into a cannabis powerhouse like he did at Albertson's. While there was no mention of SHWZ getting a takeover bid and the way the big boys are buying up other cannabis companies, could we realistically see a outrageous takeover bid for SHWZ sometime in the not too distant future? Could Dye pass on such a move? Just something to ponder because this industry is growing by leaps and bounds and the USA cannabis companies are on fire.
Finally, I think the analyst Joe Gomes is going to be pushing SHWZ's stock with reevaluations and upping his price target. Since SHWZ is so undervalued and not receiving the coverage it deserves, he could put his name on the big time map in the cannabis analyst field. It is nice to see someone realizing the potential of the company and have the platform to do it.
Everyone have a goodnight and hopefully tomorrow will be a green day.
