So up in Ct a lot of New Yorkers are moving up. It's kind of annoying.kind of exciting. The area could use a bit of juice but not annoying people we already have Mucheusian flying over in his helicopter. So Cramer and David Faber were standing in front of a big screen and Cramer took a little jab at Faber that probably only I noticed he said something about... " well that's not going to bother you up in Washington Ct... Faber blanched and kept the conversation going saying "Thanks for revealing that..." Will I suppose I can tell you the Grotto in question is in Washington Ct!
iRobot Corporation (IRBT) NasdaqGS - NasdaqGS Real Time Price. Currency in USD Add to watchlist Visitors trend2W10W9M 97.37+5.99 (+6.56%) SOLD!
So Van a ways back I wrote down two names in the sector and I have been following them purely for informational purposes to get a sense of the sector... KSHB it was 55 Cents. i know I know I just wanted to get a feel. & I liked the name! And their business is good. A) KushCo Holdings, Inc. (KSHB) Other OTC - Other OTC Delayed Price. Currency in USD Add to watchlist 0.7490+0.0635 (+9.26%) As of 12:30PM EDT. Market open. >>> So I know it's 74 cents big deal but it was 55. Ok #2 was TCNNF - it was $17 This is a big player Current Price--> B)Trulieve Cannabis Corp. (TCNNF) Other OTC - Other OTC Delayed Price. Currency in USD Add to watchlist 21.45+0.27 (+1.27%) ... Nothing to sneeze at at $4 up.... Anyway these two I had researched beforehand... The sector terrifies me... I could get a whole bunch of these names & I bet I make a fortune.. I mean there are alot and some are very cheap in dollar amount... I've been fighting this urge... Here is Another interesting one TRSSF- C)TerrAscend Corp. (TRSSF) Other OTC - Other OTC Delayed Price. Currency in USD Add to watchlist 5.80+0.16 (+2.91%) TerrAscend Commences Sales from Newly Expanded State Flower Cultivation Facility October 6, 2020 San Francisco Based Cultivation Facility Achieves 500% Increase in Output of Super-Premium, Indoor Grown Flower NEW YORKandTORONTO,Oct. 6, 2020/CNW/ - TerrAscend Corp. ("TerrAscend" or the "Company") (CSE: TER) (OTCQX: TRSSF), a leading North American cannabis operator, today announced that it has successfully commenced sales from its newly expanded, State Flower cultivation facility located inSan Francisco. TerrAscend has now completed the expansion of it State Flower facility, increasing the square footage from 5,000 to 20,000 square feet while also implementing automation to improve the facilities annual production of super-premium craft flower. This has resulted in a 500% increase in total output, enabling TerrAscend to significantly increase the supply of State Flower products to theCaliforniawholesale market as well as its award winning Apothecarium dispensaries in the state. >> So I guess in a way gummybear has picked up coverage of the sector as of today. Put out a press release Van... I'm going to have to come up with a great email to explain this to my people... this is not going to go over well...
I developed a investing trick a long time ago that has worked well for me in situations like this. I call it the 1000 share rule! So when you have a scatter shot set up a sector like Solar... and you want to place a bunch of bets what i do is keep he share amount constant-- that way you naturally wind up with both more capital to the more stable names and a high amount on some zingers to the moon... and you don't go overboard on a 50 cent stock.. I think the play in this sector--will to be constant in share amount-- and somehow I have to turn that into the reason to buy.. I'll say hey I want to put $20 K into pot stocks.... thousand this thousand that, thousand this... Bam bam bam. There's something democratic about it and it may raise less red alarms.. Nancy Pellosi is doing such a great job! But I wonder wouldn't we have preferred stimulus after the election.... The market was talking itself into this huge Biden Blue wave stimulus package but if it all comes now... that takes some air out things... For the economy it's the best move but for the ups and downs of the market... not sure.
OH BOY VAN BIG NEWS-! Berry Global Group, Inc. (BERY) 50.59+1.03 (+2.07%) Doing well I think over an important level here<..... Oh what's this?... THE BUYSIDE Berry Global Stock Can More Than Double: 2 Fund Managers Blue Tower Asset ManagementOct. 19, 2020 12:48 pm ET gummybear advisors Order Reprints Print Article Text size Wanda Bucks loads plastic lids into a printing machine at Berry Plastics Corp. in Alsip, Illinois John Zich/ Bloomberg News Disclaimer: The author of this idea and the author’s fund had a position in this security at the time of posting and may trade in and out of this position without informing anyone. Target price: $123.47<---- GUMMY TIME! Bam! Recent price: $50.38 Timeframe: 2-5 years<-- ahhh little long. Thesis Summary:Berry Plastics Groupis a stable, predictable plastics goods manufacturer. The company has a track record of growing through acquisitions and improving operations and enhancing margins. While the plastics industry is fragmented, there are oligopolistic economics within many specific product lines . In order to maximize the returns to equity holders, Berry has funded acquisitions primarily with debt. The company is highly leveraged but is able to tolerate large amounts of debt due to its predictable, noncyclical economics. In this type of business, leverage optimizes returns for equity holders. Either a paying down of debt and/or potential future acquisitions will catalyze a future rerating for current investors. Company Overview In the current volatile investing environment created by the potential policy changes from the 2020 U.S. elections and the ongoing coronavirus pandemic, one safe harbor for investors can be found in recession-proof consumer staples companies. Berry Global (formerly Berry Plastics) is one of the largest plastics manufacturers is in the world with 293 production facilities in 39 countries. Berry’s customer base is extremely diverse with over 13,000 different customers, including multinational companies such as Procter & Gamble and Unilever. The company’s diverse collection of current products consists of approximately 100,000 unique SKUs. Its business is extremely recession resistant as evidenced by its persistent revenue and margins throughout the 2008 global financial crisis. Part of the reason for the current investment opportunity in Berry is that some investors see it as being a commodity business lacking competitive advantages. However, Berry Global is well into the process of building these. Berry has a wholly owned packaging design studio, Blue Clover Studios, to help smaller customers design packaging solutions for their products. For larger customers, they have embedded design teams to help integrate new customer products with the newest plastics engineering technologies at Berry. While investors in businesses that have competitive-advantage moats have been well rewarded, the even greater advantage goes to investors in businesses that are in the process of creating new moats. Growth Through Acquisition Berry has been ignored by investors who are deterred by the company’s very high debt levels (currently 4.5x net debt to non-GAAP adjusted Ebitda (earnings before interest, taxes, depreciation, and amortization)) and the belief that plastics manufacturing is a low-barrier-to-entry commodity business. They ignore the changing dynamics of the industry and Berry’s success at executing its acquisition strategy to grow the business. Berry acquires companies primarily using debt and then integrates them into its business with significant margin improvement. On average, Berry has managed to achieve cost synergies that are roughly 5% of the annual revenues of the targeted companies. These synergies will vary depending on the prior scale and efficiency of the targets. Two-fifths of the cost synergies (2% of revenue) are from superior prices on resin purchases. Berry Global has significant scale and purchases 3.2 billion kilograms per year, making it the largest purchaser of plastic resins in the world among plastic manufacturers. It is able to use its scale to gain considerable price concessions from resin producers, reducing the production costs after acquisition. The other three-fifths of cost synergies (3% of revenue) come from manufacturing economies of scale and more efficient business practices. These additional acquisitions only make Berry’s scale advantage greater going forward. The growth of hydrofracking in the United States and the current cheap price of oil have benefited the company. The number of resin suppliers in the marketplace has been growing, weakening the negotiating ability of resin suppliers when dealing with plastic manufacturers like Berry. This cheaper cost of resin is a benefit in making plastic products more attractive as roughly half the current manufacturing cost of food containers comes from the resin price. For the vast majority of Berry’s manufacturing contracts, the cost of resin material is contractually passed through to the customer, reducing the variability in the operating margins of Berry. Recent Acquisition/Divestiture History Berry has made many major acquisitions since its IPO in October 2012. For many of the acquired targets, public figures for their revenue or Ebitda at the time of acquisition were not publicly available. Seal For Life was the sole major divestiture during this time period. The two largest acquisitions were Avintiv andRPC. Berry purchased Avintiv, which was a portfolio company of the private-equity wing of Blackstone, in 2015. Avintiv received most of its revenue from health and hygiene markets, and had a significant business in specialized industrial products. This gave them exposure to international markets and access to new market sectors in health care. These health-care products have higher gross margins than Berry’s other products. At the time of acquisition, the company expected to realize over $50 million per year in cost synergies. The July 2019 acquisition of U.K.-based RPC gave Berry dramatically increased scale and a global footprint. RPC had facilities in 33 countries employing 25,000 workers. By revenue and enterprise value, it was nearly half the size of Berry Global prior to the acquisition. The notes offering used to generate some of the funds for the transaction has a maturity of 2026 and no financial maintenance covenants. The company expected $150 million of annual synergies between the two companies and that the transaction will be accretive to earnings and free cash flow generation. Free Cash Flow Growth Driven by successful acquisitions, free cash flow per share has grown at the annual rate of 16% over the past five years. Segment Information While there are many other plastic goods manufacturers, Berry focuses on product lines where it can maintain a dominant position. Berry considers itself the market leader in the majority of its portfolio of product lines. Since the acquisition of RPC Global, it has been divided into four business segments, which are summarized below. The operating margins of the segments differ, with the highest-margin business being the Health, Hygiene & Specialties segment. Despite only being 20% of revenue, this segment was 49% of operating income for the 2019 fiscal year. (The company’s fiscal year ends in late September; segment revenue below is for fiscal 2019.) 1. Consumer Packaging International Revenue of $4.6 billion (36% of total) Recycling. Bottles and Canisters. Containers. Closures and Dispensing Systems. Medical Devices. Polythene film. Recycling and waste management solutions. 2. Consumer Packaging North America Revenue of $3.0 billion (24% of total) Containers and Pails. Foodservice. Closures. Bottles and Prescription Vials. Tubes. 3. Engineered Materials Revenue of $2.5 billion (20% of total) Stretch and Shrink Films. Converter Films. Institutional Can Liners. Tape Products. Food and Consumer Films. Retail Bags. PVC Films. Agriculture Films. 4. Health, Hygiene & Specialties Revenue of $2.5 billion (20% of total) Diapers. Feminine Care. Medical Garments. Disinfectant wipes. Dryer Sheets. Filters. It is instructive to examine the relationships between Berry, its suppliers, and customers through a Porter’s Five Forces framework. Plastic goods are produced from polymer resins, and these polymer resins are produced from petrochemical intermediates. The growth of hydrodynamic fracking has dramatically decreased the cost of oil and gas production in the U.S. and has led to an increase in the number of resin producers that supply Berry. On the customer side, small start-up consumer brands are able to use online advertising and distribution in order to take market share from the supermarket-distributed megabrands. These smaller brands will have less bargaining power against container manufacturers like Berry. At the same time, increases in mergers of plastic producers have created more concentration and an oligopoly dynamic among major manufacturers. As the bargaining power of their suppliers and customers weaken and the competitive rivalry in their industry weakens, Berry’s ability to earn outsized economic returns will strengthen. Several Potential Future Capital Allocation Paths There are multiple possible paths for Berry that will all result in good investor outcomes. The best result would be if the company is able to continue successfully acquiring and integrating smaller plastics companies into its corporate structure. Over the past five years, this acquisition strategy has allowed the company to grow Ebitda per share by 16% annualized. If its acquisitions slow down and Berry reaches its deleveraging target of <4x debt-to-Ebitda, investors can still have a great outcome from a deleveraging that causes a market rerating of the stock to a multiple of enterprise value/Ebitda similar to comparable companies. If the company remains at a cheap valuation after it reaches its deleveraging target, the company can begin buybacks and compound investor capital in that manner. And now I turn it over to gummybear advisors. BUY It VAN
KushCo emphasis on costs 'finally reflecting on financials,' says Roth Capital 09/24 KSHB After KushCo pre-announced earlier this morning that it expects Q4 sales of $25.5M-$26M and AEBITDA of $0.25M-$0.75M, Roth Capital analyst Scott Fortune noted that both were slightly above his own "Street-high" estimates and he believes the company is now in a position to drive profitability. The analyst, who added that management's emphasis over the past year on "right-sizing its cost structure while focusing on larger accounts" is "finally reflecting on financials," keeps a Buy rating on KushCo shares with a $2 price target on the stock.
Trulieve Cannabis price target raised to $45 from $40 at Craig-Hallum 09/28 TCNNF Craig-Hallum analyst Eric Des Lauriers raised the firm's price target on Trulieve Cannabis to $45 from $40 and keeps a Buy rating on the shares. The analyst notes that Trulieve Cannabis is the most profitable cannabis company with 50% EBITDA margins for five straight quarters and over $50M in free cash flow year-to-date. The company has also grown at over 100% CAGR since inception, he adds. With fundamentals accelerating and the company now more diversified, Des Lauriers would be aggressively buying shares.
TerrAscend initiated with a Buy at Needham 08/25 TRSSF Needham analyst Matt McGinley initiated coverage of TerrAscend with a Buy rating and $5.50 price target. The analyst notes that while the company has a "narrow" footprint of only 3 states, it is running "scaled" and EBITDA-positive operations. McGinley further cites TerrAscend's leading position in the Pennsylvania wholesale market, its strong dispensary assets and retail brand in California, and the anticipated material contribution to 2021 revenue from its New Jersey footprint.
Lets see 1000 Trulieve<-- It's like these guys couldn't spell True Live right... X $21.50 =YIKES Too mUch! $21,500 1000 KSHB = Only $750 bucks... wait my system is not working I think it works better in biotech.... 1000 TerrAsdcend = That's $5,800 ok that's good... This is going to be $27- $28 thousand bucks a little hot... I wonder if 750 shares in each is the way to go.....