DrugDoctor, I agree. (Sorry for the long winded response, but I didnt want to blow off your reply.) Out of the entire call this the comment that stuck with me. I think because it was the most candid comment that I have heard on an earnings call in a long time. It expressed that Justin was aware of the visual impact of the numbers pertaining to investor sentiment...and possibly in agreement to the point where the numbers werent telling the real story. I liked that this comment addressed the concern head on and reinforced investors that projections were still on track. I appreciated that it wasnt an attempt at polishing a turd. I get that the CEO has to be the biggest cheerleader...and in one particular company it is a (well invested) chairman, but I get so fed up listening to earnings call when the company puts up a numerical blooper and they speak like numbers dont matter...to look at the distant future and see the 'what ifs'. If they address a letdown they give excuses, like cost compression (while operating in limited licensed market)...or hint at possible 'dark market' trading dragging down the SP. Obviously all cannabis investors want to see a positive return on their investment, because we see the industries potential. What I like about Schwazze is that they are still managing to get it down in one, if not the, highest competitive, well established US market. For me, I see Canada and the well established US markets as the true future tell...and honestly it makes sense. I think at the end of the day the majority of the public can afford a $40-$60 purchase (basket size)...especially with inflation and in a cash only industry. I think the people investing in the companies that operate in the (temporarily) limited licensed market, where basket sizes are $100+, might be investing in the flashy 'top tier' companies with "impressive margins"...but they better get used to that 'price compression' excuse because at the end of the day cannabis is a commodity and their markets wont be protected forever (also why I think MSOs are against federal reform...and that they just want the pieces that favor capital inflows). If they are complaining about cost compression because the basket size dropped to "just over $100"...I cant wait to see how these companies do when that basket size is cut in half. Sure, it will take time, but this is where Schwazze will eventually shine. And I fully believe it will only get better as the company has yet to fill shelves with their own products, and reap the extra profit margins from those sales. Sales that the other 'Top MSOs' are already recording because they are already taking full advantage of this...which is why their growth can only come from political capital inflow changes, M&A, new states/markets or new product development.
I might be disappointed that the numbers didnt post the way that I expected, and that the timeline to launch has been pushed back...and vocal about it...but I have certainly not lost faith in the company.
AI
