Thoughts on Choom

Sadly there is no point to even look at them separately, outside of 100s of other similar chooms. It is yet to be proven that small publicly traded growers can be profitable (as well as the majority of big ones actually). Most of these companies were started by the finance bros simply trying to capitalize on the legalization hype. They either: 1) had no idea how to grow anything and thought as long as you grow weed you gonna be rolling in money no matter what, or 2) were never even planning to be successful in the first place. It was not like: "Okay we will start with our own money growing 10 plants, sell the stuff, then plant 50 plants, then once we get to a 1000 plants we go public to expand and double the size of a proven operation". It was more like: "Okay, we got all that investor money. Now let's throw 100 million here, 100 million there, 10 million is my bonus. Ok, we need more money, print more shares, etc." It's all fcked up and makes no sense fiscally, hence the share prices. Most of these companies will be out of business by the end of year because nobody will lend them money (especially now, in recession), and they are already diluted to sht with all that money spent and with not much to show for it in revenue. The government wasn't much help either on their road to profitability, but covid and legal stores once again non-operational - it was the last nail in the coffin.

I know not many of you will like this projection (and I don't either, as I have some money still stuck in this sector) but the truth is the truth. People will continue to buy and smoke weed but... this wasn't the right way to capitalize on that, unfortunately.

/r/weedstocks Thread