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Hey Nerds: Blockchain

Just dug in and I'm pretty shocked at how poor the fins are tbh...

So EPS and net income were positive because of a $23.6M gain on investment so that's kinda misleading. Their non weed operations crushed them this quarter. $10m operating loss. Actual operating results generated both negative EBIDTA and net income in Q4. Gross margins in Q4 were just 2.2%. Holy shit.

2.2%. Their margins were already bad but the non weed operations absolutely annihilated them this quarter.
 
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meanwhile I made serious dinner money shorting NQ....still holding on to some puts in GOOGL and MSFT. I love the risk reward here because my stop is nearby
 
I guess Columbia whispered sweet nothings during its investor call -- best day in a while for them
 
PT upgrades coming up for them surely. Their results were not surprising after the pre-announcement but it confirmed that they have a legit path to become a monster.

I still have concerns about their margins and how they are going to build out/expand in the states that they are in. It's nice that they have a wide footprint, but they are a bit thin in each state for now. That is slowly changing and will continue to change but I suspect we'll see further dilution via acquisitions or cash raises as it won't be cheap to continue to build out. But it should be worth it in the end.

Their call seemed to be quite bullish on California and Florida in particular.
 
I held them because I believed that they were undervalued despite the absolutely garbage stock. Finally it pays off. Them and AYR feel like my top picks to potentially become closer to a tier 1 name within the next two years. Execution risks are there. A lot can go wrong. But there is a clear path for both and they are not quite valued as companies who are likely to succeed.
 
CCHW and AYR are a mile wide, and an inch deep. Love them both but so far investors are more keen on the mile deep players like TRUL
 
Best part is AYR are the profitability kings while CCHW should show great top line revenues. It's hard to say what's more important at this stage: Wide footprint, huge top line revenues VS smaller footprint but presence in key profitable states with fantastic profitability metrics? I say.. Why not both? It's kind of like the tier 2 version of Trulieve vs Curaleaf. I like them both but for different reasons. Idk what will be the better strategy in the end.
 
Yeah..I have no preference but if the market wants to undervalue the AYRs and CCHWs of the world, I'm ok with paying less for those companies
 
Weed sector needs a major Thumb beat because it's a dead one at this point. No volume, no excitement. It's almost like there's some good news fatigue for the sector (which is fair.. there's been a lot of it). NY legalizing prospects haven't even gotten a reaction. We need SAFE or one of these companies beating bigly to get some excitement back. In any case todays action is fine.

And yes, the days of ATHs were brief but they're over now for Presto.
 
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