Medicine Man Technologies Inc (SHWZ)

[damAcon1]

When I saw their margins increase...it drives me nuts that they dont get any of the lime light. I mean:

"Gross profit margin of 58%
Adjusted EBITDA of $14.5 million was 36.3% of revenue"

This is on Colorado and New Mexico...two locations that are suffering cost compression worse than almost EVERYWHERE ELSE! "Oh...<<<insert Top MSO here>>> is "the best" ...like really? Their game plan is specific to limited licensed markets where they can be a first mover to take advantage of the lack of competition and higher flower prices. Then they have falling, or stagnant, margins while complaining about cost compression. LIKE FOR REAL!?!? Your states of operation have flower prices 2x-5x the price of Colorado or New Mexico....and the best you can pull is 50% profit margin and around 30% aEBITDA? How are they going to 'maintain' similar margins if the end result of every state market flower price ultimately settles around the current price of Colorado?

Meanwhile Analyst and Individual Investors keep talking about how operators need to slow cap ex and focus on efficiencies...wanting operators to prove themselves through their efficiency...when they fail to take into consideration the landscape of operation. SHWZ is literally operating in the foxhole pulling margins higher than the other companies, while also growing -- and doing so accretively (not this "immediately accretive to the bottom line", but 2 years later still writing off goodwill -- Trulieve). The analyst and investors in this space apparently don't truly appreciate/recognize 'operator efficiency'.