Sorry TRICHOMES is currently Invite Only. Check your cannabis friends or influencers for an invitation!

Back to Login

CLOSE
LOGIN / REGISTER

Article 14  Investors: MedMen's Disappointing Q4 Spells Hard Times Ahead

Listen to the T-POD:



    Jesse Betend

    Trichomes Staff


    Investors are forecasting tough times for Los Angeles-based cannabis retailer MedMen

    Enterprises Inc. following a disappointing 4th quarter report. 


    Just hours after posting their 4th quarter results on October 15th, Canadian

    broker-dealer Canaccord Genuity downgraded MedMen’s 12-month price target to $0.00

    and doubled down on their previous recommendation to sell-and-sail.


Earlier that day, MedMen reported Q4 earnings of $27.5 million, a 40.3% decrease from the previous quarter. The company cited lower foot traffic in its key markets of California and Nevada as the main reason for the low revenue. 


“We made significant progress during the fourth quarter by focusing on retail profitability, optimizing our corporate infrastructure and strengthening our balance sheet ahead of an exciting new chapter for the Company,” the company's Interim CEO Tom Lynch said in a prepared statement. The company says it expects to bounce back to the tune of a 37% increase in Q1 2021, however Canadian investors remain wary.

Stock analysts Technical420 say it expects further dilution in the short term; it suggests the company’s $10 million cash-on-hand at the end of Q4 leaves them little bandwidth for mistakes. (In August, the company was denied a permit to sell recreational cannabis in the city of Pasadena.) 


It remains to be seen how economic recovery will play into MedMen’s opportunities to correct course going forward.

Many U.S. cannabis companies have seen their Canadian stock valuations decrease from their 2019 highs and economic hardship resulting from the Coronavirus pandemic has also impacted opportunities for capital. 


However, with 5 states voting on cannabis legalization provisions this election day, a new year may also bring new opportunities for expansion if the companies can circumvent current predicaments. 



Article Information

Source: TRICHOMES

Posted: Oct-26-2020



The Growth & Shift of CBD Sales in The U.S. - HiO Interview: Franny Tacy of Franny's Farmacy 22 2 Comments
Canada's Cronos Group to Invest in US-Based PharmaCann 22
Federal Cannabis Legalization, Political Progress, & Finance - HiO: Jamie Warm of Henry's Original 27
Cannabis-Adjacent: Transient Receptor Potential Channels 22
Cannabis Legislation on the Move in Louisiana 26
$21M In Equity Funding Raised by Texas Medical Cannabis Producer 26
Transform Your Passion Into Your Employment - CiC Interview: Derrick Knudsen of Meta Talent Group 16
Is There Hope for Universal Cannabis Testing & Why Do We Care? | Jules Sinclair - Emerald Scientific 11
Flowr to Export 500 Kilograms of Flower to Israel 22
Connecticut State Lawmakers Set to Vote on Cannabis Legalization Measure This Week 22 1 Comment

0 Comments

Want to share your opinion? Please Log In to TRICHOMES

Want to share your opinion? Please Log In to TRICHOMES Here