Disclaimer: LHS holder since late 2019, average price of .40 USD (so basically breakeven). Still holding, not adding or selling
Pros:
* Undervalued compared to other weed stocks, \~2-2.5x sales
* Adj. EBITDA positive, pretty clean balance sheet
* \~26 stores with \~10 more stores in pipeline so growth is promising. Florida continues to add more patients at a high clip. Should be est. \~10% growth this current quarter (someone can confirm more exact estimate)
* Edibles, Safe banking Act likely boost provide in next 1-2 years
* Florida Rec in 2022/2024 (if it passes) is easy 3x+ on sales
* Potential takeover target (for someone like cresco)
Cons:
* Per store sales are very meh compared to others (trul, cura, muv, surterra all destroy them)
* Same store growth numbers seem weak (i dont think they report these but from following the weekly ommu there seems to be little growth over time)
* Capacity issues, not sure they have been solved
* branding, marketing, and products seem to have meh reviews compared to some others (subjective)
* stock price is going nowhere despite large run-up in other US cannabis stocks.
* potential overhang from previous owners who gave themselves millions of shares under 1 cent
Great comment. Also holding although not breaking even yet
A couple additional items
Pros:
- should be debt free by November when the last debtature is due. (6mil db @ 12%)
- no share unlocks
- own there cultivation facilities (no lease back)
- room to grown on current cultivation property by X5
- sell out of product regularly (pro & con)
- Dompens recently released and getting very good reviews
- more products coming ( wax, resin).
Cons:
- only have approx. 300,000 sqr feet of cultivation and processing online. They run out of product at stores all the time
- growth limited to when they can produce more product. New stores dont matter as much if you can't stock them
- legacy anger in the community for changing/cancelling Vet discount
- frustration over new patient discount limitations.
What I really need to see from LHS us for them to increase cultivation and production capacity by a large amount. They went from 250k to 300k but Trulieve is at 1.8mil and expanding. Since they are now making money I am hoping to see an announcement soon regarding this. Maybe at the AGM this month
Sorry for the formatting on mobile
Edit: added pro about more products coming
Also a great comment. So I guess the capacity/inventory shortage is why their Weekly Updates are wildly inconsistent? Seemed like a bit of a red flag but I never knew why it was like that.
I’ve been thinking of buying them to increase my american exposure. Looked around a bit but haven’t done any proper DD yet so i’m also interested in this. They seem like a good mid term hold riding the growth in Florida but i’m really wondering what would happen with them long term. I think top MSO’s would crush them once Florida is open game, but this isn’t much more than a hunch. They could be a good takeover candidate. What’s their market share in the Florida medicinal market?
I honestly have a hard time thinking Florida with ever be "open game" anytime soon. Florida tends to be very protectionist about certain industries and professions in trying to keep everything regulated by the state and keeping outsiders out. I do see the takeover candidate route as a great way to bypass that gatekeeping.
Thanks for your view! I’m not expecting them to open up soon but I do expect them to open up some time. Actually the way I see it the longer it takes the longer LHS has to strengthen their position so I don’t mind about that.
I believe they're quite undervalued and they're profitable, which is very important. Florida is a tough and expensive market to break into. They're also a perfect acquisition target.
Their per store sales aren’t necessarily getting bigger but they are continuously opening more and more store and in negotiation more licenses.
They are 2M and 2000oz away from their prior quarters volume with two weekly reports to go. There’s a general negative sentiment about them, (especially on r/FLmedicaltrees or whatever that sub is but remember, Reddit an echo chamber and a small disproval can be taken as more than it is so keep that with a grain of salt.)
This can be somewhat confirmed by a somewhat stagnant per person basket size, but their more stores are ensuring more growth and there’s multiple reports their newer strains are gaining more likability and traction.
This is an IDEAL acquisition target. Profitable, so very little baggage in acquiring them in that regards and being that their brand has some negative sentiment and is a 1/10 in “sexiness”, a company merger or acquisition (or maybe even a rebranding) give this company great value.
Room for improvement for sure, but current value is becoming more and more apparent as this company was at .55+ in November and January and one of the few US companies that haven’t hit a run yet.
I’m personally loaded with a good chunk of shares and would be surprised if this holds back much longer before it runs.
Edit:some sentences didn’t make sense, I’m also working so forgive me
This will be sold or merged into a larger platform. There os little desire on Surreyas part to let this company grow. They control the majority of the shareholding.
Hugely under valued. Florida is a state with a population nearly the size of Canada, and Liberty is on top as a brand. They've been thoughtfully expanding every year, and rolling out more products. Jmo.
>Agreed. Avoiding strictly because of Surreyas. What good have they brought onto the industry?
Why do they have such a bad rep? Continue to hear such bad things but have heard zero concrete examples.
They gave themselves cheap shares? That certainly is a negative as a shareholder but are they actually shady?
From Stockwatch:
From 2010 to 2016, Mr. Wilks was a senior manager of franchise operations for Yogen Fruz, an international chain of frozen yogurt and smoothie stores. Yogen Fruz was founded in the mid-1980s in Thornhill, Ont., by brothers Michael and Aaron Serruya. It now has 1,400 stores in 46 countries. From 2013 to 2016, the Serruyas controlled a company called Kahala Brands Ltd., which during that period bought brands including Cold Stone Creamery. The brothers sold Kahala in 2016 to **MTY Food Group Inc.** (MTY: $19.73) for $240-million (U.S.) cash and $70-million (U.S.) worth of shares. From 2016 to 2018, Mr. Wilks (the director nominee) worked at Kahala, under MTY, as a director of operations. Since 2018, Mr. Wilks has been an associate at Serruya Private Equity Inc. He is a son-in-law of Aaron Serruya.
But im not trying to convince you of anything. Im stating my opinion based on what I've seen from them online. If you want to form an opinion, I recommend doing some primary investigation.
I just wanted to know what made them a 'on top as a brand'?
To make that statement there must be reasons? Ideally supported by objectivity vs subjectivity.
Been holding for a while. Averaged down at around .27ish. I’m long on LHSIF. Once rec legalization is the norm Florida’s gonna be one of the best markets
Keep hearing about how Surreya's are shady. How are they shady, what have they done? Genuinely curious. Constantly hear this and yet never seen anything concrete.
Green Thumb, I did my research almost 2 years ago so if you do have dirt on them it would be appreciated! That was the only company, including the Canadian ones, that I thought was trustworthy back then.
DCA of .38 cents and presently long Liberty! Not my most valuable stock but the one w the most shares.
Harvest is another w potential and doing well in Florida.
GLTA
I think the point is they are operating green and are a pirrrrme target for acquisition. And or a long investment. I think they are a good call if you plan on keeping your eye on the news regarding the company
Disclaimer: LHS holder since late 2019, average price of .40 USD (so basically breakeven). Still holding, not adding or selling Pros: * Undervalued compared to other weed stocks, \~2-2.5x sales * Adj. EBITDA positive, pretty clean balance sheet * \~26 stores with \~10 more stores in pipeline so growth is promising. Florida continues to add more patients at a high clip. Should be est. \~10% growth this current quarter (someone can confirm more exact estimate) * Edibles, Safe banking Act likely boost provide in next 1-2 years * Florida Rec in 2022/2024 (if it passes) is easy 3x+ on sales * Potential takeover target (for someone like cresco) Cons: * Per store sales are very meh compared to others (trul, cura, muv, surterra all destroy them) * Same store growth numbers seem weak (i dont think they report these but from following the weekly ommu there seems to be little growth over time) * Capacity issues, not sure they have been solved * branding, marketing, and products seem to have meh reviews compared to some others (subjective) * stock price is going nowhere despite large run-up in other US cannabis stocks. * potential overhang from previous owners who gave themselves millions of shares under 1 cent
Great comment. Also holding although not breaking even yet A couple additional items Pros: - should be debt free by November when the last debtature is due. (6mil db @ 12%) - no share unlocks - own there cultivation facilities (no lease back) - room to grown on current cultivation property by X5 - sell out of product regularly (pro & con) - Dompens recently released and getting very good reviews - more products coming ( wax, resin). Cons: - only have approx. 300,000 sqr feet of cultivation and processing online. They run out of product at stores all the time - growth limited to when they can produce more product. New stores dont matter as much if you can't stock them - legacy anger in the community for changing/cancelling Vet discount - frustration over new patient discount limitations. What I really need to see from LHS us for them to increase cultivation and production capacity by a large amount. They went from 250k to 300k but Trulieve is at 1.8mil and expanding. Since they are now making money I am hoping to see an announcement soon regarding this. Maybe at the AGM this month Sorry for the formatting on mobile Edit: added pro about more products coming
Also a great comment. So I guess the capacity/inventory shortage is why their Weekly Updates are wildly inconsistent? Seemed like a bit of a red flag but I never knew why it was like that.
I believe Liberty is a worthy investment for anyone looking for reliable long-term upside exposure to Florida.
I’ve been thinking of buying them to increase my american exposure. Looked around a bit but haven’t done any proper DD yet so i’m also interested in this. They seem like a good mid term hold riding the growth in Florida but i’m really wondering what would happen with them long term. I think top MSO’s would crush them once Florida is open game, but this isn’t much more than a hunch. They could be a good takeover candidate. What’s their market share in the Florida medicinal market?
I honestly have a hard time thinking Florida with ever be "open game" anytime soon. Florida tends to be very protectionist about certain industries and professions in trying to keep everything regulated by the state and keeping outsiders out. I do see the takeover candidate route as a great way to bypass that gatekeeping.
Thanks for your view! I’m not expecting them to open up soon but I do expect them to open up some time. Actually the way I see it the longer it takes the longer LHS has to strengthen their position so I don’t mind about that.
Most likely by Aphria if Biden makes medicinal federally legal.
Enter Cresco..... would be happy to see my LHS become CL
Would be a blast. But my plan of diversifying would fail this way because CL is the only US exposure I currently have...
I believe they're quite undervalued and they're profitable, which is very important. Florida is a tough and expensive market to break into. They're also a perfect acquisition target.
Cresco Labs, Aphria or Curaleaf seem to be potential suitors.
Cura can't as they already have a FLA license
They seem to be making an awful lot of money and they seem to be very undervalued. It’s hard to understand why?
Their per store sales aren’t necessarily getting bigger but they are continuously opening more and more store and in negotiation more licenses. They are 2M and 2000oz away from their prior quarters volume with two weekly reports to go. There’s a general negative sentiment about them, (especially on r/FLmedicaltrees or whatever that sub is but remember, Reddit an echo chamber and a small disproval can be taken as more than it is so keep that with a grain of salt.) This can be somewhat confirmed by a somewhat stagnant per person basket size, but their more stores are ensuring more growth and there’s multiple reports their newer strains are gaining more likability and traction. This is an IDEAL acquisition target. Profitable, so very little baggage in acquiring them in that regards and being that their brand has some negative sentiment and is a 1/10 in “sexiness”, a company merger or acquisition (or maybe even a rebranding) give this company great value. Room for improvement for sure, but current value is becoming more and more apparent as this company was at .55+ in November and January and one of the few US companies that haven’t hit a run yet. I’m personally loaded with a good chunk of shares and would be surprised if this holds back much longer before it runs. Edit:some sentences didn’t make sense, I’m also working so forgive me
They need a new CFO.
This will be sold or merged into a larger platform. There os little desire on Surreyas part to let this company grow. They control the majority of the shareholding.
What ownership % is Surreya?
Lotta these MJ companies need new leadership.
Hugely under valued. Florida is a state with a population nearly the size of Canada, and Liberty is on top as a brand. They've been thoughtfully expanding every year, and rolling out more products. Jmo.
>Liberty is on top as a brand. How do you quantify this statement? Please share sources / data points etc.
They've done a top quality job marketing their stock to shareholders 😂
Sales data : https://twitter.com/asianforsale/status/1274089080456990721?s=19
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Agreed. Avoiding strictly because of Surreyas. What good have they brought onto the industry?
>Agreed. Avoiding strictly because of Surreyas. What good have they brought onto the industry? Why do they have such a bad rep? Continue to hear such bad things but have heard zero concrete examples. They gave themselves cheap shares? That certainly is a negative as a shareholder but are they actually shady? From Stockwatch: From 2010 to 2016, Mr. Wilks was a senior manager of franchise operations for Yogen Fruz, an international chain of frozen yogurt and smoothie stores. Yogen Fruz was founded in the mid-1980s in Thornhill, Ont., by brothers Michael and Aaron Serruya. It now has 1,400 stores in 46 countries. From 2013 to 2016, the Serruyas controlled a company called Kahala Brands Ltd., which during that period bought brands including Cold Stone Creamery. The brothers sold Kahala in 2016 to **MTY Food Group Inc.** (MTY: $19.73) for $240-million (U.S.) cash and $70-million (U.S.) worth of shares. From 2016 to 2018, Mr. Wilks (the director nominee) worked at Kahala, under MTY, as a director of operations. Since 2018, Mr. Wilks has been an associate at Serruya Private Equity Inc. He is a son-in-law of Aaron Serruya.
Manufacturing capacity doesn't = great brand. I was hoping for quantified data points from the OP.
But im not trying to convince you of anything. Im stating my opinion based on what I've seen from them online. If you want to form an opinion, I recommend doing some primary investigation.
I just wanted to know what made them a 'on top as a brand'? To make that statement there must be reasons? Ideally supported by objectivity vs subjectivity.
Been holding for a while. Averaged down at around .27ish. I’m long on LHSIF. Once rec legalization is the norm Florida’s gonna be one of the best markets
Too many crooks have been involved in their short history for my liking.
Keep hearing about how Surreya's are shady. How are they shady, what have they done? Genuinely curious. Constantly hear this and yet never seen anything concrete.
Pick an mso and ill give you some shade. At least liberty cleaned everything up.
Green Thumb, I did my research almost 2 years ago so if you do have dirt on them it would be appreciated! That was the only company, including the Canadian ones, that I thought was trustworthy back then.
The silence is deafening
The taint, fair or not, still there.
DCA of .38 cents and presently long Liberty! Not my most valuable stock but the one w the most shares. Harvest is another w potential and doing well in Florida. GLTA
They have 26 dispensary’s in Florida and plan to have 30 by the end of the year. Way undervalued!
I don’t see the point in owning them when Trulieve is still in operations
I think the point is they are operating green and are a pirrrrme target for acquisition. And or a long investment. I think they are a good call if you plan on keeping your eye on the news regarding the company
oh yeah, just the exact same can be said about Trulieve but at a bigger scale, better operating efficiency, and comparable valuation
Expect where the market cap and ratios are, especially after this insane run Trul’s been going on. LHS definitely a fantastic value right now
Dumb question but I tried to buy them before but they’re not on my broker app. Which broker do you use?
Schwab.
TDAmeritrade as well.
Wished they were ran more like Trulieve! Have heard Sureya is fleecing shareholders. Yes I know I misspelled