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?
Anyone looking to sell FIN for a profit immediately is hurting right now, especially those stuck with non-tradable stock til April, but three things I know:
1. There’s $3m in the bank, and Google Finance is showing the market cap of FIN at less than $1 million.
2. Management knows that April stock is looming, and that if they don’t have a deal as good (or better) in place by then, they’re going to get creamed.
3. Management owns stock, so they’re motivated to get things sorted.
I’m told they’re absolutely looking to the same space, and we’ve seen a few other companies secure deals in the product area recently (the Golden Leaf Juju Joints deal
today being a great example).
To me, there’s no upside in selling now, though you may be tempted to take your profits if you’ve been there for a long time and are still in the green. I’m holding non-tradable stock, so I’m in the red, but I’m not bugging about it. If the current share price is the low (and it’s up 12% today as I write this), I’d say there’s an above average chance it moves up in the weeks ahead.
Noticed you don’t have Nano One Materials (NNO.V) in your in-focus section anymore. Are you not into them anymore?
The opposite. I love NNO and actually took a tour of their pilot plant this week. Stay tuned for a piece in the next few days about that experience, which I can only say was A+. That crew has done everything they promised they would, on time, on budget, and in a way that is set up for real success. I bought NNO stock yesterday based on that tour and we’re discussing a deal going forward.
A whole bunch of Supreme Pharmaceuticals (SL.C) Facebook folk said:
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?
If you own SL, here’s all you need to consider:
1) There’s a weed shortage in Canada almost across the board.
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.
If you bought Supreme back when we were saying (at $0.16) that it was a gimme, you’re digging your ten-bagger now. If you got in late and haven’t experienced the wonders of the profits created by CEO John Fowler for you to date, suck it up. You bought a long term killer. Let it play out.
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.
Come on, you can’t have it both ways. Matica is making moves, which is something that should be applauded. Would have been easy to just sit and slowly burn through treasury while working on one’s golf swing. Instead, they’ve found a way back into the game.
And, to be sure, the game they just climbed into this week is NO DIFFERENT from the deal investors thought was the bomb a year ago. Both are late stage applicants. Both are cheap buy-ins. Both require patience.
The earlier deal fell apart due to the operator pulling some weirdness, a situation that will play out in court soon, as Matica is suing for their losses.
Bottom line: It’s the cheapest weed deal on the market right now, and it’s got some momentum. We’ll be talking to the CEO next week for more info.
— Chris Parry
FULL DISCLOSURE: Finore Mining is an Equity.Guru marketing client and the author owns Finore stock, and has options in Matica. Nano One is a former marketing client. Supreme Pharmaceuticals is not because they’re owning like a boss and don’t need any market exposure help, yo.