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High Tide DD from Reddit


cjubes
(@coreyjubesgmail-com)
Active Member
Joined: 1 month ago
Posts: 10
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High Tide Ultimate DD

 

Repost from r/hightide and u/elguapotron4200

OVERVIEW

HIGH TIDE: Cannabis eComm Global Empire -- THC, CBD, & Accessories

NASDAQ and TSX Venture Symbol - HITI

INVESTOR DECK: https://hightideinc.com/presentation

CEO Ask me Anything: https://www.reddit.com/r/HighTideInc/comments/qibzum/high_tide_inc_ama_with_raj_grover_wednesday/

Undervalued, hidden GEM w/ visionary CEO, team, & plan

[Powder Keg. Low float = rapid upside moves]

  1. Q3 ER $48M revenue BEAT. Rapid expansion of stores (100+ EOY '21; 200 = new goal) and M&A now = big net profits later

  2. NON-DILUTIVE FINANCING (NDF) = $25M secured. Grows w/ EBITDA

  3. ANALYSTS (5!) w/ BUY RATINGS Beacon (new!) initiated coverage this week. 1-2 more by EOY.

  4. M&A targets in a loaded deal pipeline. Negotiated accretive deals on grasscity.com/, smokecartel.com/, fabcbd.com/, dailyhighclub.com/, dankstop.com/, & blessedcbd.co.uk/

  5. ETFs (7) hold & add

  6. INSTITUTIONS (20+) initiated positions in Q2, adding in Q3. New institutions quietly buying in Q3 will be revealed mid-Nov

  7. COMPS. Undervalued. ~1.5x P/S. NASDAQ-listed Canadian LPs are unprofitable, powered by dilution & delusion. MSOS get no love on the OTC.

DISCOUNT CLUB MODEL hot take

https://hightideinc.com/high-tide-becomes-north-americas-first-cannabis-discount-club-retailer-with-over-245000-members/

DATA DRIVEN decision (based on pilot programs) to scrap the "Cannabis Chop Club" name but not the concept. Saves money on the cost of converting some stores, builds brand equity exclusively in the CANNA CABANA name, and enables High Tide to roll out the benefits of the concept immediately to all locations.

Membership in this loyalty program is FREE ...for now. Every person who walks into a Canna Cabana will see a high cost for non-members, and a discounted cost for members. When they realize signing up for FREE with their email address and phone # (SMS) makes them a MEMBER of the CABANA CLUB, they will do so in order to save money on that purchase and future purchases.

Stores are stocked w/ HIGH MARGIN products like consumption accessories, FabCBD & Blessed CBD, house brands of shatter & gummies -- with other form factors later.

DATA and MARKET SHARE grab from other retailers and the black market.

NON-DILUTIVE FINANCING VIRTUOUS CYCLE

https://hightideinc.com/high-tide-secures-non-dilutive-credit-facility-with-atb-financial/

25M non dilutive bank financing secured ~20M in cash on hand after the BlessedCBD deal

That is a nice war chest to begin to ramp up from 100 to 200 stores AND do some more M&A

Projected revenue then goes up

Analysts' PTs forced to go up based on updated models

Which allows High Tide to secure more NDF based on consensus EBITDA run rate

Repeat virtuous cycle until 200 stores

Repeat virtuous cycle until World Domination

RAJ IS A BEAST

Raj is the biggest shareholder (6.5M!) and has never sold a share.

He started this company with $40k and one store and grew it into the empire you see today. And he isn't slowing down.

He wasn't handed millions which he squandered paying themselves and their friends first or expanding too much too fast.

He is shrewd. Smart. Strategic. Charismatic. Transparent. And he does whatever he says he is going to do, when he says he is going to do it.

That's rare.

You bet on visionary leaders like that.

That's why there are 4-5x as many watchers here on StockTwits than any USA MSO.

The passion we feel is contagious. It's only a matter of time before more institutions and retail investors realize what we already did and trust Raj to take us to the promised land.

CATALYSTS Barnacles like to see develop

A) NON-DILUTIVE FINANCING. Allows rapid expansion without just issuing shares. MSOS forced to dilute.

B) NEW DISCOUNT CLUB MODEL + PRIVATE LABEL LAUNCH. 2.0 products & CBD will mega-boost margins.

C) FUNDAMENTALS improving through rapid store opening&maturation and M&A aligned w/ eCommerce domination STRATEGY. 2.5M+ high lifetime value customer emails + data + social across USA = most valuable asset

D) LEGALIZATION "working-on-it" headlines sparking another forward-looking cannabis sector bull run. Most tutes can't invest in USA MSOs stuck on the OTC (likely several more mo), so they invest in NASDAQ companies w/ higher valuations. And we all know HITI's superior fundamentals, valuation, & profit projections stack up very well vs LPs & comps

E) MORE ANALYSTS & INSTITUTIONAL INVESTORS (stay tuned)

F) NARRATIVE shift from LP to RETAIL. See:

G) USA STRATEGIC PARTNERSHIP. Read: https://mjbizdaily.com/how-canadian-cannabis-retailer-high-tide-plans-to-enter-united-states/

COMMANDING ECOMM RETAILER MULTIPLES

High margin private label THC (edibles, shatter -- later flower, vape, etc) & FabCBD.com / BlessedCBD is going to be a big reason High Tide is projected to be net profitable in 2022.

When High Tide...

A) Sells the most Accessories & CBD worldwide

B) Owns multiple businesses in the USA

C) Sells cannabis data

D) Produces/creates THC edible, vape, & flower brands

E) Provides accessories to dispensaries across multiple states

F) Buys/operates dispensaries in NY(!!??)

G) PARTNERS WITH STATE OPERATORS TO GIVE THEM ACCESS TO SELL THC TO THEIR 2.5M HIGH LIFETIME VALUE CANNABIS CONSUMERS(!!)

...is it still considered "just a Canadian Cannabis Retailer" ???

It's all about flippening the LP vs Retail narrative and COMMANDING NASDAQ-listed NET PROFITABLE GLOBAL / MULTI-STATE USA ECOMM RETAILER TECH MULTIPLES

Diverse income streams and a nimble plan makes $HITI DANGEROUS in any scenario

WORLD DOMINATION or BIG TIME BUY OUT

I play a lot of chess so I apologize for the chess analogy

High Tide is a "passed pawn" chess.com/terms/passed-pawn

Meaning, they have advanced aggressively down the board and are heading for the opponent's back rank. If they get there, they become a Queen, the most powerful piece on the board.

Because High Tide is acquiring all these ecommerce driven consumption accessory businesses at low multiples, they have a golden list of 2.5M high lifetime value customers (who bought pipes, bongs, vapes, dab rigs, etc) segmented by US State. Any MSO with USA domination plans wants this list.

If an MSO doesn't buy them out, they will keep pushing that pawn, and then they will have to compete against them when they become a Queen.

If analysts had not put all this together by now, and they they happen to read that AMA (because they would be wise to read what Raj says) where I asked the (loaded) question about this, they get it now.

 


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

@coreyjubesgmail-com Corey… High Tide is a target, if you ask me.  There was someone who posted that he was not satisfied with the progress of the company.  I mentioned in a reply that HITI stock would eventually catch up to a foundation that is building. The store here is simple: They are building and building.  Profits will come later.  And, they also will likely get acquired.  Period.  

Thanks for posting this.  Great concept of looking at High Tide. 


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