up. we shall see.
, i mean *when*, the price of the equity will have already adjusted.
If you believe you are a buyer.
Temporary sale price can not last unless the business implodes.
and there is a buyer in the weeds
you are both being silly.
when things get sorted out, this is a very nice business.
until then its a quagmire, but it is all a matter of perspective.
CR has hurt a lot of people who should not have been hurt, because he is not logical nor business savvy, but the underlying demand and metrics, ex K, are not a disaster.
go see my reasoning and summary thesis I just posted after a careful examination.
i am long MJNA already. Sold some CBIS to get a couple blocks of ERBB this am.
and landmark Yale study just out last 36 hours.
Bernie is pro
Mj as well....and likely others.
Liz Warren, may run for prez, has high ratings, just went pro legalization (MA likely to pass fully next year)
Oregon starts Oct 1.
National Geographic expose on MJ, vaping and cancer, etc. Big documentary and cover story recently out.
Political will for reform gaining and gaining.
There will be some big winners. ERBB may be one. Clearly a takeover candidate with the patents etc.
vaping MJ for rec or medicinal will become de riguer as the socially acceptable, 'safe' intake and absorbtion modality. ERBB with the patents re vending is in a great spot. Partnerships will create value.
Political tailwinds along with the largest hospital in Israel utilizing vaping in house for its patients (and Successfully) will put a company like ERBB in the spotlight as people put all the pieces of the puzzle.
im in on our patents. long 2mm so far thisz am.
you dont have beverage stocks trading at 8. Some stocks trade at less p/e. Comparing different sectors' p/e just shows a certain level of stock market naivete.
they had 200k cash, said they would not dilute.
NP, you know they have all their loot tied up in inventory waiting for plant completion. And we all know the cash cycle of the biz. You left out the EBITDA incentive and the nature of this is just a bridge loan. Millions of dollars of inventory just waiting for that elusive completion of East and West plants....and whatever else they cant announce because they cant fill orders....yet.
Sad? Certainly. The end of the road? I guess you can tell us how that will transpire.
reeds will have transformational news wayyy before jsda. Transformational news moves stocks. The nice thing about a panera trial is that it can not be hidden from the public. It involves the public. If it is the case that it is panera
Since no one has noted the similarity to Monster's earlier distribution, I will.
Before MNST, then HANS, had a Coke deal, they turned their whole distribution over to AB.
But before they did, they built the relationship slowly from just one AB distributor, to several, to a total takeover.
That was about 2008-2009 I believe.
i guess i was not totally focused, because i missed the fact that REED is in trials with a large fast casual and bidding it out as well.
I have to believe that was a key driver for buyers.
I am loathe to speculate, but even if it was only 30mm/year in bag in a box, at a 33%GM, that would be a pretty easy ride to 10mm more in GM's. SGA associated with the program could be offset by efficiencies and optimizing logistics between the plants, THEORETICALLY.
This trial thing. Someone must know something more than we do. Isnt that always the case. IOW, this isnt happening in private and secrecy.
Reading the transcript, the plants should be all running smoothly later this year.
Any other thoughts from reading the transcript
NP, you have been rather muted here.
it's been over 2 years. He is so paranoid that they will steal his secrets he didnt really try until the other copacker gave hime the finger.
Why the finger?
Because the old sage, CR, chastised them on conference calls.
Note to CR, if you are going to say you are dropping your east coast packer on a public conference call, it might be a good idea to line up another copacker FIRST!
and i have only scratched the surface with the opportunity costs.
Like consuming the LA plant with marginless K and PL versus higher margin RGB's.
I dont think a total moron could have made more poor tactical decision making.
Thats why no one is selling despite the catastrophic quarter. These are hardened shareholders.
i cant imagine walking away at this juncture. Shareholders are well adjusted to disappointment. If these results dont bring it down, at least for a day or three, then the market, at the moment, is okay with the delay in production.
monster grew from nothing to 500m sales in the same time that it has taken CR to line up the second east coast packer.
and monster did not produce any of their drinks. all copackers.
Astonishing incompetence, to be quite frank.