Medicine Man Technologies Inc (QX) (SHWZ) News

To play the pop on the actual passing, yes. I agree. But it's a guess how long that bet will be tied up, and if drags on for a few months, the pop will be from below 50 at that point. Either way, as soon as it pops, sell, since the stock will immediately drift back down again imo.

I dunno, it recently popped up into the .80s on the rescheduling announcement, then fell back with the crowd. Still could be a good entry point in the .50s imo

It's just another announcement in a long line of announcements that haven't yet borne fruit. Any investor in the MJ space would be a fool to think it's a done deal, or that it will happen over the short term based on past history. Public comment will occur, more than likely the hand will be forced for a public hearing on this, the usual gaggle of idiotic geese will come out and push against this rescheduling. Dithering and deferring will occur. Political posturing for constituents around protecting them from the evils of drug culture will occur during an election year for those politicians who view that as a winning position in conservative states. I fully expect delays, a slog drawn out on this. Pot investors are now all from Missouri, show me it's actually done and we'll make a decision to buy then. And with the recent ER and SHWZ's near invisibility in the MJ space, even when/if rescheduling occurs, we'll lag the other companies in any pop that occurs. Nothing I heard on the earnings call addressed that point for shareholders, in fact, they stated the opposite, they are investing to do a slower fuller buildout of the company and its approach to serving customers in a manner that will over the short term limit earnings, margins, and forestall any meaningful stock appreciation. That's what I read between the lines. They are fully a long term investment now was the message, not short term.

Interesting how today's move to Schedule III announcement caused such a short term pop. I would think that would allow operators access to banking and remove IRS 280 restrictions. Should be great for the industry if this happens...

At this stage I'd be happy if someone bought them for $2 and each quarter that seems more and more like a pipe dream... Read the transcript of the call. More investment to build out a better customer experience, potentially good for the longterm but a short term hit to profitability while that occurs. Quoting numbers like 600+ cannabis stores in CO gets little pity from me, since the guy quoting that comes from a supermarket background and there are over 500 supermarkets in CO. So isn't that level of competition the playing field and one he's familiar with? Lower margin, higher operating costs, ramp up of stores seems slowing, and the need to sunset stores throws shade on their playbook and ability to ID and improve already well-performing stores. Wholesale, medical showing some promise. Clearly stated they are focusing on building the business and that will not lead to share growth in the short term.

Comparing Trulieve to schwazze is laughable…..I’ll leave it at that

My take is a little different even with sales at the retail level. Don't you all think with these pissed off employees and really the worst negative reviews ever these budtenders behind the counter are happy? The attitude would surely be obvious. Point being when they bought Starbuds these reviews were off the chart. You pay top dollar and overpaid for many of these dispensaries and now relocating. Again point taken the overall amount of dispensaries is not much different from 2 years ago. Exactly what happened to store loyalty after Shwz? You buy a dispensary and close it down for 3 months exactly what does the customer do? Wait 3 months for your meds? No Fahey start looking around. LOL first we renovate them and now 2 years later move them. Definitely not a formula for success imo. Until they stop looking for excuses this co. is doomed imo. Time to get that liaison for management and low level employee and work as a team!

So I believe earnings have been "baked into" the price now. If you look at $TCNNF - sporting a $11.92 price - and they lost $23,000,000.00 in the first quarter of 2024, I believe that management can turn this around. I've been predicting closing of underperforming locations for about a year now, and I believe they are finally going to do it. After years of rapid growth, it's time to focus on sustained profitability, and it appears they know this. So, 2.3 million in profits for the rest of the year with over $160 million in revenues, should be entirely possible for Schwazze. Here's a link to Trulieve's losses.. https://finance.yahoo.com/news/trulieve-cannabis-corp-tcnnf-q1-172244930.html

Q&A had good questions asked...the rest of the call was not exactly comforting. With the exception of the company expecting S3 news, the 34th NM store opened and new product factors expected over the next quarters, even their positive takeaways were industry negative -- like 'shakeout' continues. I think they said 72 stores closed. In addition, SHWZ is expecting negative growth as they are planning to close 3 underperforming stores in CO -- but will be reallocate the licenses. I guess my positive takeaway continues to be the company's ability to have Tier1 Gross Profit Margins while operating in two of the most competitive markets -- where CO is seeing $750/lbs of flower -- while Tier1s cry cost compression and competition in markets 3+ times that rate. So basically, if SHWZ can outlast, until the 'chasing limited markets/highest revenue generating' investor excitement wears off and the US industry playing field levels (sarcasm), that is when the company will start shine.

https://www.greenmarketreport.com/schwazze-has-the-blahs/

Yea, the financials came in about where I also expected them to be, and this has to be concerning...


Income (loss) from Operations: Loss of $2.7 million in Q1 2024, compared to income of $5.6 million in Q1 2023.

Net Loss: $16.1 million in Q1 2024, compared to net income of $1.7 million in Q1 2023.

We all expected the charges, and hopefully they will be significantly reduced in Q2 (the current quarter) burt the loss from operations will need to be fixed, as it will drain the cash reserves to continue those kinds of losses. I was playing in a golf tourney today, so I didn't listen to the conference call, probably listen to the replay tomorrow, but I hope they have a plan...

Good call on the (significant) loss! OUCH!
SG&A along with Salaries are almost $1M more than the gross profit!

Basic earnings loss per share (0.24)

Let's see how they address the issues today. I see more write - offs with low sales than q4.. Exactly why do we have 2 CEO'S? Really wasn't Dye going to promote and get the word put? With everything known the loss is going to be in excess of $15 mil. My hope is still in the new CEO.

I would like the earnings call to directly address what the company will do for shareholder value. Increasing the share count will not do that. Executive compensation has not achieved that. Excuses related to challenges in CO and NM do not do that. Twiddling thumbs while waiting, hoping, wishing rescheduling will occur soon won't do that. What is the plan to maximize and appreciate shareholder value in line with other companies in this space over recent months, all suffering similar challenges? SHWZ needs to provide a compelling reason for shareholders to stay and new ones to purchase the stock. And honestly, I'm at a loss as to what that could be except them saying "we think we hit the bottom." Not exactly a compelling argument. And SHWZ who? It would be nice if they made half an attempt at letting the world know they exist.

That's a bit too negative, imo, lol. Anyway, earnings have to be priced in at this level, and I'm picking up some shares down here, as I still believe their financial position is ok. Hollering bankruptcy is nonsense, imo. And Dye will not step down, he owns most of the company... GLTY

Pretty much my thoughts as I've expressed multiple times. Honestly some heads need to roll and also IMO Dyeneeds to step down. These lawsuits are a direct result from inept management from the store level all the way to the top and nothing but the ostrich head in the sand and just plain arrogant self righteous people. Stealing tips from low level employees.

Certainly management will focus on better sales for the last 2 months and things are getting so much better. The recent DEA on going descheduling. We can't talk about all the crap going on as it is in talks and confidentiality per lawyers Yada Yada. This is so pathetic and unfortunately you are suppose to lead from the top., leadership is leading people and developers them which should be a management function. Instead raising bunch wants to drive them like cattle.

How far is bankruptcy away? Something worth considering. Even if they don't happen the dilution will. Must be time to reprise the options as they go worthless. Oh wait just reprise them and reissue them after all they deserve it for the fabulous job they have done

Sloppy MJUS rebalance.

That was a brutal day. Let’s see what tomorrow brings.

Someone's unloading a ton before earnings. New 52 week low, and they are whacking all bids. Not looking good for tomorrow's earnings report.

Hope someone asks the new CEO what has been implemented to address the recent settled lawsuit. This was the most troubling news yet . Properly addressed and rectified their is hope especially since a bottom appears in Co. sales. It would be nice to hear wholesale sales have increased since q4 as retail sales probably bombed.

Shakeout year?
https://www.greenmarketreport.com/colorado-marijuana-sales-rebound-by-11-in-march-with-april-looking-even-better/

Ancillary profit just waiting to happen.

I suppose the "no more than 20% revenue" limits are placed by grocery/convenient store/gas station/restaurant industries lobbyist's.

And of course, let's not forget the "munchies"

This makes sense as there are many snack options in any liquor store I have been in.

https://mjbizdaily.com/colorado-lawmakers-approve-bill-allowing-cannabis-retailers-to-sell-food/

A jump in sales...but still concerning when comparing the past 3 months to previous years. The total sales numbers for each month are still lower than prior years...dating all the way back to 2016/2017. I think what might save SHWZ in Q1-24 is that the average market rates this year are up in CO by almost $100/lb for flower. I am just not sure if they will be up enough to offset the challenges in NM -- not to mention the potential impact of US Customs seizures in NM, knowing SHWZ was one of the companies mentioned in the article. I do think it will be hard for SHWZ to match, or beat, the positive net income that they posted in Q1-23...but I don't think the Q will be as bad as the 0.16 loss analysts are expecting (although I have been extremely busy ay work to concern myself with the company's day-to-day).

No SHWZ investor should be happy about the recent class action settlement to allegations, of wage theft, in a tip stealing scheme by some rogue SHWZ store manager(s). The recent resignation (sacking) of their CEO Nirup Krishnamurthy may have been a result of not just sagging sales, but his ineffectuality in making sure fair and legal employment practices filtered all the way down to the dispensary level.

https://theclassactionblog.com/preliminary-approval-of-settlement-in-cannabis-dispensary-employee-class-action-lawsuit/

With Cannabis as an emerging market, there is a higher incidence of class action litigation by employees as well as litigation in general. Some of the largest MSOs in the industry have been impacted by the very same issues. I have faith the new CEO, Mr. Forrest Hoffmaster will help the company pivot from this unfortunate practice.

https://www.cannabisbusinessexecutive.com/2021/07/class-actions-increasingly-targeting-cannabis-companies/

https://mjbizdaily.com/key-hearing-begins-in-600-million-lawsuit-against-marijuana-mso-acreage/

https://mjbizdaily.com/marijuana-mso-curaleaf-faces-class-action-claim-over-mislabeled-drops/

https://mjbizdaily.com/class-action-lawsuits-on-rise-against-public-cannabis-companies/

https://mjbizdaily.com/how-marijuana-companies-can-avoid-class-action-lawsuits/

https://www.miaminewtimes.com/news/floridas-trulieve-sued-by-ex-employee-over-race-discrimination-claims-18911240

https://news.bloomberglaw.com/daily-labor-report/curaleaf-cannabis-sued-by-dispensary-employee-for-stealing-tips

https://www.classaction.org/news/lawsuit-claims-cresco-labs-cannabis-workers-owed-wages-for-time-spent-putting-on-removing-safety-equipment

https://www.benzinga.com/markets/cannabis/22/09/29061820/green-thumb-industries-must-respond-to-justice-after-being-accused-of-age-and-sex-discrimination

https://chicago.suntimes.com/cannabis/2021/3/8/22320364/verano-harvest-nature-wellness-frontier-nicholas-nielsen-weed-rico-pot-cannabis

I spoke with a former top small-cap manager who is currently managing his own money. He said, "It's all about free cash flow. Once 280E goes away, I'm calling all my institutional relationships and saying it's time. This goes from a trade, to a 3-5 year hold and there's an…— Jesse Redmond (@jesseredmond) May 9, 2024

A jump in March sales in Colorado, as usual
https://docs.google.com/spreadsheets/d/1wE7Z_1q2zxL7-kP0AqlUvL731U3Aui1l/edit#gid=1281327848

Management sucks. They ignore problems until sued. They are currently at all time lows while ALL MSO"a are up 390 % off of lows. They will probably reset options as they expire. Absolutely no accountability. The 24 million shares will mostly end up in management's hands free. There only hope is the interim CEO sees thru the BS They continue to spew. Looking for another huge loss!

Dye's answer if you don't like it sell.

Oh boy...this cant be good. I put in a low order thinking it probably wouldn't hit. Hit shortly after placing it.

Just found this on their website, at least an update. Seems the 63-store count is plodding along and holding 8% of the TAM in both CO and NM and sales trending up from the dip in Q2 last year as read: https://ir.schwazze.com/static-files/8bb5e456-6f27-41a4-92d9-4a93d2c95b0b

Elsewhere hiring highlights a Treasury monitor and of course they have some 25MM additional shares to be authorized for corporate purposes as part of the '24 Proxy. BF Borgers (previous CPA firm now has severe problems with SEC for using cut and paste past data as a basis for reporting non-current as what was supposed to be at another company) is out and now Baker-Tilly in with current BoD staying put.

Valuation upside from 280E removal (Zuanic & Associates) 🔥🔥🔥 $MSOS pic.twitter.com/mX5hUc5pOP— WeedStreet420 (@WeedStreet420) May 6, 2024

I wonder what % of this was confiscated by Customs and Border Patrol?

Down alittle from March but 1 less day. Overall a very good month. Question being is SHwz sales bottomed there. If someone could pull SHWZ numbers from the data that would be great. I still expect a large q1 loss.

https://crop.rld.nm.gov/sales.html

Exactly how is that working out for shareholders? ITs management
dude!

This is what I expected to start hearing based on my post yesterday, but just not this quickly... But if companies can reduce taxes, they would free up money for acquisitions. Nice to see at least one thinking along those lines to confirm that thinking. Whether SHWZ will get swept up in this next wave of big fish eating little fish we will need to wait and see. https://www.fidelity.com/news/article/investment-news/202405020703RTRSNEWSCOMBINED_TUA1NHYNT_1

In the long list of "came and went" runs in the MJ space, this may be the camiest and wentiest of all of them. I suppose now we wait to see if congress will only dangle the carrot of safe banking past the November elections, and then fall back on their usual inaction more resolutely. My one speculative hope in the interim is that if the schedule 3 move becomes more assured as to when (hopefully also not past November), the bigger fish, once getting their taxes in order, may get ripe for takeovers and buyouts of the smaller fish again. Of which I hope SHWZ ends up being one.

Plague? Or no short-term recall...They did have a CEO leave. And prior to that the President for Retail in NM left in what could be the timeframe fit as per this lawsuit's claims. That should/could be an indication that things were addressed as actual consequences and perhaps a lack of confidence to lead. I will add that my not so infrequent dispersions cast upon HR are still an omni-present set of issues as the ESG-DEI crap is effn thriving in both CO and NM where the Schwazze calls home. That is an unfortunate systemic problem with few reasonable solutions available until the woketards give up power.

Yesterday was a nice price blip, but it appears the market has decided upon a zero out as the politicians are stalling until November with any REAL policy changes possible based on their hollow posturing. CS and his current CACA bill is doa in the HoR. Empty Senate gestures for the benefit of we stuck with stupid ultra conservatives and stupider progressives. See POTUS campaign from confines of a Delaware beach house while Rome burns. It's so screwed up. No winners possible. SAFER on the other hand the little bill that could but isn't either as conveniently buried by big pharma's uni-party doublespeak of "what is important, soon or worth laying down over". Nope. Not the best and brightest --except as grifters.

It's so frustrating listening to some of these talking heads on NBC and other networks spewing false information. Get your fricken facts straight! Don't just spew Sabet's talking points. Come on reporters, do your jobs!

We got an election coming up though....

if rescheduling happens cannabis goes from being federally illegal to being federally illegal . Darth Brandon deletes the U.S. border and won't legalize the sacred herb .

Yep, SHWZ gets tax advantages with this change (IRS related write downs, no small thing), but we still need to recover the onside kick of Safe banking and then score with recreational legalization at the federal level. But all that is struggling against a reactionary wave in many states (states gaining more power in the current Fed vs State historical struggle in the US), in places like Florida where Desantis is speaking out against MJ rec use, and others. Shwz moved a whopping 11 cents yesterday on volume over 6 times its daily average, trailing greatly other MJ stocks in terms of yesterday's bump. So we remain a lagger, struggling even to get back to a dollar after this news. So giddy excitement is not really warranted. And I agree with StevenRisk that management should have addressed the settlement the other day, as well as the DEA move, even if it was just a simple, boilerplate statement of what the rescheduling means to them in clear operational benefits. But management seems almost afraid to let anyone know they even exist.

Here's a link to what may happen..

https://twitter.com/todd_harrison/status/1785389194786799750/photo/1

But check this Chuckles Schumer comment out>>

“While this rescheduling announcement is a historic step forward, I remain strongly committed to continuing to work on legislation like the SAFER Banking Act as well as the Cannabis Administration and Opportunity Act, which federally deschedules cannabis by removing it from the Controlled Substances Act,” Senate Majority Leader Sen. Chuck Schumer of New York said in a statement. “Congress must do everything we can to end the federal prohibition on cannabis and address longstanding harms caused by the War on Drugs.”

https://apnews.com/article/marijuana-biden-dea-criminal-justice-pot-f833a8dae6ceb31a8658a5d65832a3b8

If rescheduling happens, Marijuana instantly becomes a legal drug, therefore safe banking may not even be necessary. I would think that the banks will rather quickly reach out the industry to get their business. Will be interesting to see how this all plays out.

I too have given up on our dysfunctional Congress. Our only hopes for a functional cannabis industry were 1) rescheduling, and 2) litigation (specifically the David Bois lawsuit set to be heard before SCOTUS). That's what will move the ball down the field. We can wait until we're dead before Schumer will act on SAFER. It's just a political football for him.



-280e Check
-lawsuits Pending

Surprised management has no reply. Crack pot management instead plays the ostrich head in the sand. While they should have said they have protocol set up possibly a labor relations person to follow up with these type of allegations. This really bothers me as it should every shareholder or potential shareholder. Sounds like it's time to unionize. Steal tips from a $16 an hour budtender and then management or staff gets meals. I don't trust management as this really takes the cake. Getting a settlement is one thing for the grieved individual is one thing,but running a business with no integrity and then pull this crap is totally reason to ignore this POS like the plaque!

In older days, I would be thinking, man, safe banking is a slam dunk after the DEA announcement. But nothing is a slam dunk for that dysfunctional band of fools in congress. So I remain merely cautiously optimistic they will get their heads out of their behinds during an election year and finally pass something.

This is a buy signal
..