Readers write to us often at the EG mailbag, asking opinions on the DL. We like to share those opinions with the many. So here’s the recent batch.
I know you’ve been paid by FIN to help market the stock but curious what your objective thoughts are regarding the failed deal with Kushtown. I own 350,000 shares at a price that is still in the money (was a shareholder in FIN from way back) and frankly, still want to believe that these guys can make something happen.
You think they will get something done? Same space? Before the next PP comes free trading? Whole lot more overhang in the stock now with the additional shares from the two PP and warrants.
I’ve had a lot of feedback about FIN in the days since their deal fell through, and what it comes down to, realistically, is this: They were right to pull the plug. It wasn’t a case of putting out bullshit news – they have legitimately gone to Kushtown and started the process of takeover, then realized it just wasn’t the deal promised. You have to ask yourself, what’s best for the company? That you take it in the ass for a few weeks by walking away from a deal gone bad, and quickly regroup? Or that you persist with the deal and end up stuck with a bad company that, eventually, is going to be dragged under?
Noticed you don’t have Nano One Materials (NNO.V) in your in-focus section anymore. Are you not into them anymore?
When are we going to get our sales license? What is wrong with this CEO? Why aren’t they freaking out? Why can’t I double my money today?
2) If SL is growing weed like fury under their cultivation license and banking product in their safe that has a use by date that falls ten years from now, unless they literally fill the safe and run out of room, they’re not delayed in any way by having no license to sell just yet. The product will – eventually – be sold en masse, and the money that would have come in today if a license was in hand, will instead come in next quarter, or the quarter after, when they do have that license.
3) The old adage goes, when your competitor is drowning, throw them an anvil. If there’s a product shortage this month, there’s going to be an even bigger one next month, and the month after that (especially as dispensaries are closed and/or rec happens). What happens in a product shortage? Prices go up. And there’s SL sitting on a mountain of stock.
4) SL has tens of millions of dollars in treasury. It doesn’t need to make a few million this quarter to keep the lights on. So why rush it? Why panic? Would the share price dramatically increase if it sold $2m of weed this quarter?
5) The only people who really need that license news to drop are those looking to flip their stock and, frankly, the CEO has no duty to them.
What’s with Matica (MMJ.C)? Dead and buried for months, suddenly up from $0.01 to $0.05? On a deal that won’t pay off for a year-plus? Boo.