Supreme Pharma (SL.C) gets its license, naysayers bake in hell

Sometimes you get involved in a company in which you know, if you can hold the line, you’re going to eventually make money. But holding the line requires you to ignore the ups and downs and the waiting and the negative bullshit from short seller campaigns and bureaucracy and…
Supreme Pharma (SL.C) just got its MMPR license. Just like I said they would. Just like they said they would.
But, man, it’s been a rough year-plus waiting for that to happen while dealing with the Canadian professional stock-slammers.
Way back when marijuana was a word that brokers were still trying to learn to spell properly, Supreme Pharma jumped out of the loins of Vancouver wealth-dog David Stadnyk, and took an early lead in the ‘who will get a license first’ stakes.
But Stadnyk doesn’t stick to his knitting because he likes starting new deals, and so he soon passed the company on to others who are more into weed than he is, specifically into the hands of weed lawyer/user John “T-1000” Fowler.
Fowler built out a giant 340 sq. ft. grow facility and prepared for Health Canada to eventually show up for an inspection and fine tuned the paperwork and then… waited.
But before all that, back in the day, I told Stadnyk he needed to roll back his stock and the internet threw arms up in horror. With 130m shares out at round 7c per, it had to be done. Sure, it meant a slower rise to multiples if the stock rose, but with a long wait ahead and likely not much news in the meantime, the stock was much more likely to fall for a while, and you don’t want your market cap dropping almost 10% every time a half penny shaves off the price.
So Stadnyk rolled it back. And it fell. And then it rose. And then it settled. And then the bag holders forgot about the rollback and spent the next year arguing amongst themselves about the same usual crap bagholders argue about.
When SL stock slumped from 28c to 16c, post rollback, the short sellers were all over it like white on rice. I said at the time, ‘if you don’t think that price is good value, I don’t know what to say to you,’ and the stock duly jumped back up over 20c and never looked back.
But every time it dropped a penny, you heard the same old idiots yelling about how it was never getting its license, how Stadnyk had pumped it and dumped it, how Health Canada wasn’t putting out any more licenses… any piece of garbage excuse they could think of to depress the price for a moment.
Today, the company finally got its license and the stock duly jumped 6.3% to 42.5c, and those same idiots are now yelling about how they ‘only’ got a 6.2% jump on their money.
Supreme delivered exactly what it said it would, how it said it would, and is now preparing to utilize the world’s largest marijuana grow operation. Employees are being called back to the office after several month furloughs. Management is cracking its knuckles and rolling in the clones. Supreme is go time.
Fowler and co. are rightfully celebrating at the moment, but I’m going to yell something they’d have too much class to repeat, and that is, “FUCK YOU, SHORT SELLERS.” That’s right, fuck y’all who bet against T-1000. You maybe made a few bucks on the downswings and maybe you created a few of those downswings out of whole cloth, so well done, you and your penny profits.
But those who bought this stock up at 16c and sat on it are now cashing in their 150% profits. The bag holders finally won. The little guy made bank.
Why did the stock ‘only’ jump 6.2% today? Because most people knew that license was coming, and so it was baked into the share price. Long time holders took the moment to cash out while those who weren’t sure about the whole thing took today to finally climb in. A 2.5c rise on 3 million trading volume speaks directly to a shareholder transition from ‘faith’ guys to ‘evidence’ guys.
Supreme will probably drop a little in the week ahead, and then we’ll go through that same pantomime again, where long term investors hang tough while the crops grow and harvests emerge and sales follow – a timeframe that’s going to be described in terms of months, not weeks. And they’ll do that while short sellers scream that Fowler’s running out of money or they won’t get enough customers or they won’t make enough margin or..
But the faithful, if they can withstand the slumps and shake-outs and shouting matches, will eventually see the stock climb into the 60c and 70c range and their faith will be rewarded. Again.
My advice for the week: If Supreme drops below 35c, ever, it’s a gift from the gods. Don’t anger the gods by rejecting their offering.
I’ll be talking to Fowler later this week to get the inside scoop on what’s coming next. Looking forward to it.
–Chris Parry
http://www.twitter.com/chrisparry
Disclaimer: ALWAYS DO YOUR OWN RESEARCH and consult with a licensed investment professional before making an investment. This communication should not be used as a basis for making any investment.

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