Weed Watcher

[Weed Watcher @WeedWatch]

@yenoms @marginofdanger So that management can make another private bid at around $0.90 and look like they are paying a generous premium, when in reality they manufactured the share price down.

[marginofdanger @marginofdanger]

Don't normally focus on sellside notes but in this instance Pablo Zuanic is on point re: $MAPS

[Jake Allen @jakeallen3]

$MAPS nanocap trading under net cash, ~170M revenue, ~40M EBITDA, ~15-20M FCF past couple years at least

95% of all regulated cannabis dispensaries are on the platform, 40% ish pay ~3k/mo. Leafly only competitor with scale is dying

Currently dispensaries get taxed on gross margin, results in ~75% effective tax rates. Industry is net money loser, 1/4 retailers are profitable. Can’t compete with hemp at less than half the cost sold in smoke shops outnumbering dispensaries 10:1 nationwide. Hemp getting wiped out soon.

Rescheduling 75% Kalshi odds by end of 2027 would cause tax rates to go from ~75% to 25%, inflecting margins across the industry right after a supply shock

Problem is the mgmt sucks. Tried to take it over before, withdrew it, delisted, sandbags. Holds a “in excess of 100M $ value” TRA that acts as poison pill with payout triggered on sale. If he has any sense he’ll try to buy it for 0.8-1.2 vs 0.38 today. Fear is it stays dead money

Uber paid 1.1B 22x rev for subscale Drizzly (CEO is on board of MAPS) on -50M cash burn to get the infrastructure for alcohol delivery. Sure it was covid times. We trade at negative EV, if we get 1x EV/S that’s 1.48

Cannabis is ~40B industry. Hemp ~20B. Long shot but if a prospective buyer $DASH $UBER captures 10% or 6B at 4% GMV margin and you’re looking at 240M of EBITDA. Maybe it’s worth coughing up for when regulatory clarity happens. Seen est $MAPS drives $2-3B GMV currently. Effective take rate 170M rev / $3B GMV = 5.6% reflects hellish margin profile of the retailers they sell to

[NameDad🎅域爸 @BTCUFO]

Big domain news: https://t.co/yKJ6LSrWjK just sold for $1,000,000 to HighLevel Inc. The story is wild: - Holder (Weedmaps/WM Tech) rejected their initial $200k offer - HighLevel filed UDRP… and LOST - Then they came back and paid 5x the price ($1M) to buy it fair and square A huge win for legitimate domain holders. #DomainBase

[Marijuana Moment @MarijuanaMoment]

Colombian Lawmakers Approve Bill To Legalize Marijuana: "We’re going to keep marijuana off the streets so that it can only be sold in places where you have to show your ID, have a permit, and have a license."

https://t.co/ngqmuf4J2x

[moazzam0 @moazzam0_reddit]

There is no better write-up on $MAPS than this masterpiece from the great @RodAlzmann of $gme fame:
https://t.co/cpNkLxqVaE

[Young child/golden retriever @EggMasonValue]

I can't put into words how much I'm SEETHING as a former $MAPS bagholder. The cleanest cannabis play on the NASDAQ BY FAR decides to delist RIGHT BEFORE a once-in-decades event. Everyone is buying $MSOS when they haven't paid 280E for years already. Have to settle for $GRWG ig

[marginofdanger @marginofdanger]

$MAPS is trading at net cash, generates positive EBITDA and its comp set (via $MSOS) is up 20% on rescheduling news. Still suffering from a technical of selling pressure due to delisting. Big margin of safety. cc: @ragingbullcap @ClarkSquareCap

[unusual_whales @unusual_whales]

BREAKING: Trump is expected to reclassify marijuana to a less regulated Schedule III as soon as today, per Axios

[HanfTicker @HanfTicker]

JUST IN🚨

CANNABIS STOCKS SURGE IN AFTER-HOURS TRADING AMID GROWING OPTIMISM OVER A POSSIBLE FINAL CANNABIS RESCHEDULING RULE MAYBE COMING THIS WEEK. 🌿📈

$MSOS

[Aaron Edelheit @aaronvalue]

I firmly believe that rescheduling of cannabis is akin to the first pitch of the first game of the season. This is just the beginning and if you are investing in companies that have growth platforms with low-cost structures and great management, this is just the start.

[Evan @StockMKTNewz]

🇺🇸 TRUMP ADMINISTRATION IS EXPECTED TO MOVE TO RECLASSIFY MARIJUANA AS SOON AS TODAY

Trump is expected to use an executive order to instruct federal agencies to reclassify weed as a less regulated Schedule III drug from a Schedule I

[First Squawk @FirstSquawk]

TRUMP PLANS TO RECLASSIFY MARIJUANA BY WEDNESDAY, ACCORDING TO AXIOS.

[Weed Watcher @WeedWatch]

@RodAlzmann Depression

[Weed Watcher @WeedWatch]

@mispricedrisk @hdemott3 @WMTechnologyIR Great work

[NewsForce @Newsforce]

DOJ MOVES CANNABIS CLOSER TO SCHEDULE III

The DOJ says marijuana rescheduling is in its final phase after DEA input and 43,000 public comments.

The change would not legalize cannabis federally but would ease research, taxes, and banking rules.

It also moves marijuana out of the same category as heroin, but the rule is not final yet.

Source: NewsForce
Host: @realwilldonahue

[Weed Watcher @WeedWatch]

@RodAlzmann Rod does this mean the FBI won’t be raiding our houses after this trade is all said and done? 😔

[Jesse Redmond @jesseredmond]

Also, the $MAPS talk with @JDerevyanny and @MorganPaxhia was excellent. Right after this clip, Morgan explains what he thinks is going on....

[Weed Watcher @WeedWatch]

$maps WM Technology a company making $165 million in Gross Profit generated from $8 million in Cost of Sales. Valued at zero (or less) if you consider cash on hand. Nice.