damAcon1, I appreciate your counter feedback. I am trying to create some thought and conversation on my end. This is the way I see it...the value in cannabis now appears in the MSO's. With Dye moving into New Mexico has added much more value to the company than just the acquisition price. It makes SHWZ a bigger competitor to the major players.
My theory is a prediction of what is going to happen and my thesis for SHWZ to move into Oklahoma now if the price is right. With New Mexico going recreational and Colorado is already recreational, Oklahoma's cannabis business is going to be under immense pressure to become recreational also. Many customers will now be able to drive across state lines to purchase cannabis since Oklahoma is adjacent to CO and NM. If OKlahoma doesn't get up to speed and cannabis gets legalized, then it will lose out on great tax revenues because the cliental will have established crossing into these states to make purchases.
Starbuds in Oklahoma just opened an 8th store, so it can't be that bad to make some money. Also, establishing the existent Oklahoma Starbuds stores under the SHWZ umbrella will give these stores a better identity and reputation like franchising. There should be a more consistent buying experience for the customer. Also, by moving into Oklahoma it will give SHWZ a customer base on the Western and Northern border of Texas. That should give SHWZ the inside track of future business to moving into Texas easier which would be hitting the lottery jackpot.
If Dye could get those Oklahoma Starbuds at the right price, those stores should jump at the chance. In my opinion, Dye doesn't need this deal to be profitable, just a breakeven deal to set up for what I see as the future of legalization of cannabis and growing SHWZ into a bigger MSO. Then SHWZ would be the major player surrounding Texas and it should make entry into Texas easier because of familiarity of the brand to customers. If the future holds what I see as a big picture for cannabis holds true, SHWZ would be an industry giant just by being in the 4 states alone of CO, NM, OK and TX.
So, it is a guessing game on my part about my thesis, but it could provide a tremendous payoff if it came true. I will throw another wild curveball out there to all of you, but Arizona cannabis is booming and it wouldn't surprise me to see Dye try to make an acquisition into Arizona which definitely would be more expensive than an Oklahoma move. I just don't think Dye is going to sit on his hands with the cash in the bank the company has. With cannabis companies stock prices at these cheap levels, it makes sense to make a move now before they become more expensive. Just my thoughts so don't shoot me......LOL!
