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Welcome to the Cannabis Investing Newsletter Forum. Feel free to find your favorite cannabis stocks and contribute content as you please; content that continues the discussion of, and analysis of, cannabis stocks. – D. H. Taylor

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Acquisitions…


cjubes
(@coreyjubesgmail-com)
Active Member
Joined: 1 month ago
Posts: 10
Topic starter  

Any guesses on any upcoming acquisitions ?


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Matthew Norris
(@birkboy91gmail-com)
Active Member
Joined: 3 months ago
Posts: 9
 

Curious how they might expand their significant online presence. I need to do more research to see who might be on their list. But clearly, Raj Grover is very intelligent, and has made excellent acquisitions thus far; expect to see more great decision making 

Another interesting question would be, who might acquire THEM?

Would love to see their organic growth. The way HITI is being smartly structured, they're clearly strong enough to stand on their own merit.


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cjubes
(@coreyjubesgmail-com)
Active Member
Joined: 1 month ago
Posts: 10
Topic starter  

DH also alluded to a possible acquisition. If so i'm hoping for it post legalization as i'm still well short on my entry point.  I believe Tilray already has a position, so im assuming they would be on a short list.


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susna55555
(@susna55555)
Active Member
Joined: 1 month ago
Posts: 6
 

This is dead stock in my opinion. Overvalued. Fair market cap for this unprofitable low gross margin (it seems, more revenue they get, less gross margin will be, 35% last quarter) company up to 200 M USD. Fair price below 4.00 USD. Check real undervalued cash machines like MRMD, SHWAB, HOLISTER BIOSCIENCES. Or revenue machine IONKF (revenue 5X its market cap).

I know RAJ is GOOD but dilution will not help you 🙂

Ordinary Shares Number
 
51,211 ( today 51,211)
44,985
31,815
16,006 (10/30/2020)
 
This is what: 320%  outstanding shares growth? You need more revenue growth than 300% to stay flat 🙂

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D. H. Taylor
(@cannabisinvestingnewsletter)
Member Admin
Joined: 1 year ago
Posts: 305
 

Hey everyone:

Wanted to chime in on this.  

First, as far as acquisitions, my thinking is that High Tide HITI stock would likely get acquired and that will be by an American company looking to expand into Canada really quickly.  Easy to do.  At the same time, High Tide is also likely to continue to expand.  

As for margins and revenue growth, we are still seeing new stores open.  So, as these new stores open up they have yet to scale up individually to any level of hitting their numbers.  True, there is revenue growth but, marginal profits have not trickled through yet.  It’s that organic growth you will want to watch for in each store.  For now, these numbers are slightly distorted by new store openings.  

I would love to see growth in gross margins and other improvements.  They will get there.  Retail stores are some of the easiest to control costs.  Just need continuous growth organically in all of the existing stores.  


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