Medicine Man Technologies Inc (SHWZ)

[In Plain Sight]

Sector wise...The hard reality of dope is setting in in some obvious places...if you hate reading an opinion about why I too hate the sector and some screw the pooch companies that can't add or subtract good and on time go no further, However...

https://www.fool.com/investing/2022/05/09/why-sundial-growers-green-thumb-industries-and-cur/?source=eptyholnk0000202&utm_source=yahoo-host&utm_medium=feed&utm_campaign=article

Now after more than a year of pushing some of these NASDAQ darlings some hard facts are being discussed openly by these armchair analysts (ha-ha)..."Meanwhile, Sundial is a small Canadian grower dealing with the difficult Canadian market, which is often over-supplied. Sundial became incredibly popular as a meme stock in the heyday of market speculation in early 2021. However, these types of profit-less stocks are now falling back to earth. Sundial only made $56 million in revenue over the past 12 months, despite having a market cap of $1 billion and an enterprise value of $600 million."

Per my lay research it (SNDL) also will be required as part of the extension it was granted by the NASDAQ to do a reverse split soon unless it goes over a buck for ten consecutive days I believe by August. Oh, another left off small detail...but why poke the Fools?

And our unloved company did so much better yet has fallen back to Tier III land because of the sharp drop in share price all while increasing it's footprint, revs and fcf AFTER taxes??? Today, Unless a hiccup, the share price action may well be the reversal most of us have contended will happen IS actually happening...now, as the best shall rise and the weak will die off. Those in med only land have lost a lot of their sex appeal. Consolidation at lower prices like CRLBF-CCHWF and VRNOF-GDNSF may or may not survive in a downturn (the we can do better on our own) may even break some deals or anticipated deals as the volatility is too disruptive to consider as reward-risk is blown up.

Examples of zombie companies like HEXO, SNDL, MMNFF, RWBYF, ITHUF may well go away in the form of closings, asset sales (asset light, Bueller?) and even forfeitures. Yet, they persist. So poking the Fool these same suck millions in trade capital further from what I contend will be left of the sector daily. Is big pharma really after us? Some other companies may find their actual value like PLNHF at something more or less a buck due to a too small footprint and trying to buy shoes many sizes too large or are forced into the social equity partnerships which further subordinate their control in the name of restorative justice to enter a limited State license? What could go wrong? Competing in the largest illicit State? A store in NV? 2 in FL? Yet, they have, like SNDL, a market cap which exceeds any reasonable metric I can attach currently. The gamesmanship of what is a dispensary is also growing more amusing by the day. Is it a license to build, operate or own one? Is it physical or remain notional until it's open? Thankfully a few states, like FL make these numbers available for us to view by number of locations.

Finally, our SHWZ, I think, climbs into what will be the next best successful and surviving Tier I group. Those at present that are poorly run MSOs that will contract under their enormous capital-intensive models, their existing debt, and gross miscalculations re the timing of legalization. 2022? HA! Bad joke. Their ETF fanbase that is and will be selling them into the abyss with forced redemptions I predict will be the next hot twittery topic in the coming days. What happens if say a dope ETF blows up? Does it create a new generational wealth and or buying opportunity? Or, as I suspect, do we get price discovery and a subset of outright survivors sooner?

I like SHWZ's odds to thrive in this market melee.