Replies to post #18605 on Medicine Man Technologies Inc (SHWZ)

[damAcon1]

Some challenging parts...lower total revenue due to wholesale and lowing guidance...but seriously though did you see the margins? I am gonna pump this...and let the haters hate...

Gross margin 60.1%; aEBITDA margin 36.7%

Look at those numbers! These are numbers from a company that is operating in a HIGHLY competitive state, a state that the other MSOs are running from...and a second, unlimited licensed state, that the other 'top' MSOs also don't seem the slightest bit interested in. These are numbers predominantly coming from a state where existing operators are closing up shop daily. These number ARE NOT coming from states where the licenses are limited, where there are only a handful of operators and where you can price gouge due to those benefits. This is a company that operates in a state where 'true' quality matters and consumers have expectations...because the industry is well established.

Now let's look at the same Q3 numbers from some of those other 'top' operators:

CURLF
Gross margin 49%; aEBITDA margin 24.7%

TCNNF
Gross margin 56%; aEBITDA margin 33%

GTBIF
Gross margin 50.2%; aEBITDA margin 32%

MRMD
Gross margin 48%; aEBITDA margin 25%

[In Plain Sight]

Solid report.

While I personally disagree with their assessment on SAFE+ by January, they probably have a much better pulse of timing than I after yesterday, today, and wtf does this elective mess mean as that issue goes in what we call a Constitutional Republic...lol. Provided it is a go...credit card sales as allowed should improve retail sales by a nice factor, but probably not in time for a meaningful additive Q4 impact unless there is a retail Christmas miracle of sorts. Another impressive +12% over peer performance in CO with uncertainty and difficult economics for the cash paying customer who has less ready affluence. Customer base and that loyalty building will make a difference going forward especially in stressed markets as they are keenly aware. In sum, I read them as focused on the prize and telling us this (to paraphrase "Regional") focus in CO and NMl) is a winning strategy (by their scale) despite the distractions of the macro environment (Mid-Terms D+1 and what we know that we don't know)

I believe there was a question on brands and NK with the mention of a CBD brands push. Is this what is hiding behind Schwazze Biosciences? Sounds plausible --that could be a significant rollout all by itself as beyond the in-dispensary placement, hence increased recognition of their SKU brand names goes.

Obvious they were disappointed by delays of 4-additional NM stores opening not at the beginning, but now towards the end of Q4. Delays hold back capital for more rapid expansion. Great discipline in my lay view. For me it really begins to paint a picture of what will be well prepared, surviving, and thriving operators like SHWZ and the opposite inefficient, over-extended that are absorbed or gone altogether sooner.