Replies to post #2526 on Kush Supply Co. (fka KSHB)

[Cheetah SPEED]

Longs loaded under $2. Look for $6-7 on next jump in chart

[Bed Bath & Beyonce]

If by the market is punishing KSHB you mean shorts, then yeah. In the past four weeks, short volume on KSHB has been as high as 75%. Last Friday alone it was 60%.

Two other problems for KSHB right now:
1. The S-3 filed last week, authorizing more shares for cash raises.
2. Current Chinese tariffs are already affecting the company (from the last 10-Q).....

Gross profit for the three months ended February 28, 2019 was $4,522,093, or 13% of revenue, compared to $3,189,318, or 31% of revenue, for the three months ended February 28, 2018. The decrease in gross profit percentage is primarily attributable to a shift in sales mix, increased freight-in charges, and product quality costs, along with the recent China trade tariffs that have been absorbed into costs of goods sold. Management views these tariffs as short-term and strategically decided not to pass on these tariff cost to drive market share.

Management viewed those tariffs based on current levels, not the ones slated to come into effect this Friday. If those China tariffs are indeed raised this upcoming Friday from 10% to 25%, KSHB is going to get hurt further and the shorts are going to feast on KSHB even more.