BefallenKnight
2 weeks ago
Another Victory for the Call Sellers.
The Aug 16 2.5x calls, and above, printed for those who sold after March but I feel bad for the big player(s) who sold the calls in February and January this year before the run-up. After doing some โresearchโ I learned that the early Aug 16 2.5c sellers were forced to buy a load of shares (as well as OTM calls) to cover the position which likely contributed to the move from 1.35 to 2.93. Hindsight, amirite, most players donโt like to lament on losses which is why Iโm just hearing about this trade. Weโre not talking big money as the 2.5mm shares allocated in the open calls are a mere $6.25mm worth of shares to deliver but symbolically, itโs always interesting to hear about a large bet that goes south in the same way itโs fun to rubberneck a high stakes parlor game. Apparently between the premiums generated from selling the calls and the subsequent potions required to cover, the overall position was no great loss.
Anywhooooo, my Aug 16 cover calls expired worthless and I was able to buy back 2 strike covered calls at a lower cost basis so this month has been fruitful. Premiums baby, premiums. Gordon Gecko taught about corporate takeovers, but todayโs Bud Foxesโ donโt care about owning the pasture when they can endlessly profit from milking the cows dry. The house may always win but that doesnโt mean the neighbors canโt join in. Yada, yadaโฆ.
On to the next week, next month, next momentโฆI may buy some more leaps on Monday cause my sources say some fundamental developments are inevitable, always selling calls into pops, wonโt short puts here cause I donโt need more shares. SNDL kinda sucks for the short terms but LFG.
I have much more to say about the cannabis industry as a wholeโฆ.corporate interests have decimated the small players, aka retail shops that were the grassroots of the burgeoning industry, growers have long since sold out and been replaced by industrial ops. The next onslaught will be the marketing of cannabis to the USA, as if D.A.R.E never existed and we all accepted the medical efficacy of cannabis since its first documented use 5000 years ago.
Toe-tapping on the DEA rescheduling at which point the money flow cascades.
A quick informational note; Prior and current US law prevents public companies from involvement with companies dealing in substances classified by the DEA as Schedule 1 narcotics. Current dispensaries and grow ops in legal states STILL must use cash to process operational expenses like payroll, rent and even states/federal taxes!!! Despite states legalizing cannabis, major banks and public financial institutions are not allowed to invest or offer traditional financial services to companies โclose to the plantโ.
Well, when the DEA reschedules cannabis to Schedule 3, then those restrictions are removed. Hedge funds and venture capital can invest without penalty. Banks can loan money to credible cannabis related entities without fear of fines. Bonds can be issued for cannabis companies to expand their ventures. The dam will break, money will flow.
This industry will be massive and SNDL not only has their foot in the door, the company has half their body inside with a battering ram (banks, funds) standing in the doorway ready to breach with great force.
BefallenKnight
4 months ago
KABOOM Goes the Dynamite
The MJ boom has officially begun. This is the spark that will engine an explosion!
See, as a Schedule 1 narcotic (I gagged writing that ignorance) cannabis is deemed to dangerous for society. Therefore, public and mostly high profile companies cannot be involved with entities that are close to the plant, meaning banks, hedge funds, venture capital firms and the like must stay away from cannabis related companies.
This all changes when cannabis is rescheduled.
The result will be billions upon billions of investment dollars pouring into the cannabis sector. Companies like Sundial will now have access to bank loans, lines of credits and other traditional financial services previously unavailable. That access comes with a major windfallโฆ..NO MORE NEED FOR DILUTION AS A MEANS OF RASING CAPITAL.
Replacing dilution with bank loans will create a much more stable equities market!!!!!! I cannot stress the significance of what I just wrote!
And of course, Sundial, having NO debt and a small hoard of cashโฆ..well, thatโs just an absolute powder keg!!!!
Huge people, this is absolutely enormous!
GREEN DAYS ahead around the sector ;)
BefallenKnight
5 months ago
2024 is Gonna Be EPIC for SNDL
Look at todayโs reaction to Germanyโฆ.SNDL up 20% while other pot stocks up 60%. And that just Germany. NY and CA alone have the population of Germany.
100 years of prohibition is crumbling down and the results will be glorious!
Once rescheduling occurs SNDL is gonna tear like no other. Banks, financial institutions and the like will legally be allowed to flood the sector with investment capital, loans, bonds and other financial services previous denied to this sectors.
I was around in 2014 when WA and CO legalization sent shady, fraudulent penny stocks up 10,000% in a few months. I made so much money then I bought my girlfriend a car, a wedding ring and I still have cash leftover today (and also the wifey ;)!
Fortunately I cashed out then because those penny stocks were a joke but SNDL is for real. The company already has nearly $1b in revenue, no debt with $170mm cash.
10 years later this boom is gonna be absolutely epic and I hope everyone has enough fuel for this ride. Hold on to your shares and take a seat cause we about to blast off. 2024 will be a year to remember!!!
Viewmont
5 months ago
FULL YEAR AND FOURTH QUARTER 2023 FINANCIAL AND OPERATIONAL HIGHLIGHTS
-- Record net revenue for 2023 of $909.0 million compared to $712.2 million in 2022, an increase of 28%. Net revenue for the fourth quarter of 2023 was $248.5 million, compared to $240.4 million in the fourth quarter of 2022, an increase of 3%, with sequential growth in the Cannabis Retail and Cannabis Operations segments.
-- Gross profit grew to a record $190.4 million, or 21% of sales, for 2023, compared to $140.4 million, or 20% of sales, in the previous year, representing an increase of 36%. Record gross profit of $57.3 million, or 23% of sales, for the fourth quarter of 2023, compared to $43.6 million, or 18% of sales, in the fourth quarter of 2022. This improvement underscores the benefit of our supply chain optimization strategy, including the closure of the Olds, Alberta cultivation facility in October 2023.
-- Cash flow was negative $84.5 million in 2023, compared to negative $278.7 million, a 70% year-over-year improvement. In the fourth quarter of 2023, cash flow was negative $6.9 million, compared to negative $11.8 million in the fourth quarter of 2022, a 42% improvement. SNDL achieved positive cash flow in the second half of 2023, totaling $9.6 million.
-- Positive free cash flow1 achieved in the second half of 2023, totaling $17.7 million. This achievement was marked by positive free cash flow of $16.3 million in the third quarter of 2023 and $1.4 million in the fourth quarter of 2023, despite the working capital build up in anticipation of the holiday season in the latter quarter.
-- Operating income loss of $162.8 million for 2023, partly attributable to restructuring charges of $19.6 million and goodwill impairment of $29.0 million. This compares to a loss of $347.8 million in the previous year, marking a 53% improvement driven by revenue and margin expansion. Operating income loss of $84.9 million for the fourth quarter of 2023, including $13.3 million of restructuring cost and $29.0 million of goodwill impairment, compared to a loss of $154.6 million in the fourth quarter of 2022, a 45% improvement.
-- Adjusted EBITDA from continuing operations2 was $29.2 million in 2023, compared to an Adjusted EBITDA from continuing operations loss of $15.8 million in the previous year. Adjusted EBITDA from continuing operations was $3.5 million for the fourth quarter of 2023, compared to an Adjusted EBITDA from continuing operations loss of $7.5 million in the fourth quarter of 2022, a 147% improvement.