Hoop is here and has been here all along. I am just not doing daily commentary at this time. Here is what I will say about the situation currently:
Right now while I am glad to see the stock price finally going up, it doesn't influence me to make any additional assessments. The cannabis sector still stinks like I have stated a few times in the past weeks and nothing will get this stock or any stock in the sector to go up unless the SAFE banking act or legalization will happen. I don't see that happening because the politicians are just blowing smoke constantly talking about reform to make us happy. You can't let people out of jail for breaking the law about cannabis until they make it legal. First make it legal and then you can talk about reform and emptying the jails in my opinion. Besides once you make it legal, no one will be arrested for it going forward. I am for reform but not the way they want it to happen which I believe won't get passed.
In reality going from $1.70 to $2.05 isn't a big deal to me because the stock has still been cut down by 33% from it's highs. I have stated that I believe we are near a bottom in the cannabis sector with one more possible washout but that isn't looking like it is going to happen and the bottom of a base has finally settled in.
This stock should be trading at a 52 week high based on revenue and earnings but because the sector stinks, it is being held down by all the others. Justin Dye has this company running on all cylinders and he is killing it. I believe I was wrong about the MSO route and Dye was right to stay the SSO route because of the current laws. We can see that in his presentations he has some kind of plan to open up to other states but until legalization happens, he will continue to stay the current course.
I haven't sold a share or do I plan to anytime soon. I believe the cannabis sector is going to have a major consolidation soon because too many companies are losing money and the profitable ones will survive. In my opinion after the next SHWZ earnings report which I believe is going to surprise many, I believe you will see a takeover bid for SHWZ from one of the bigger players in the not to distant future. SHWZ is the golden gem of Colorado and many MSO's want to get into that market. It would have to be a massive bid for Dye to consider selling otherwise I believe he will pass on it. Since he controls the majority of the shares, it will have to be a good price possibly at $25.00+ in my opinion. Dye has no doubt turned into one of the pure professionals of this sector and his retail background is a testament to his knowledge of what he is doing.
Back a year ago, we had many conversations here about all the angles and ideas of where SHWZ was headed and it caused great banter and thinking. Since then, Dye and company have stayed the course they indicated and it has turned out masterfully except for the share price which will correct in time. So in the meantime, I am watching from a distance and am more confident than ever that this will be one of my major homerun investments in my lifetime. And yes, I will be planning that trip to Denver so we can all have that great party to celebrate. Can't wait to see you all there, especially you Future2016!....LOL
AI
