1. was founded in 2012 in Ontario, Canada. It trades on the Nasdaq and Toronto exchanges
They describe themselves as "an innovative global cannabinoid company"
2. In the U.S. they have the Redwood brand, a company they bought out that is focused on hemp-based products (not under the schedule 1 scrutiny)
3. In Canada and the rest of the world, is going full steam ahead on building its supply chain, with multiple joint venture, listed here:
4. in 2019, acquired a 45% stake in
5. They are investing in multiple brands for different use cases. For example, the "Spinach" product is supposed to be a social and experiences brand
6. has three distributors with over 10% of sales, which you might expect since it is early days and such a regulated market
This note doesn't count, but it is hilarious seeing "advanced vaporizer technology" being written with total seriousness in a 10-K
7. For some reason I couldn't find the financial statements in the 10-K, so I went over to the press release.
Right away you can tell this isn't a mature company, they didn't even have any sales in the U.S. last year
8. They currently have over $1 billion in cash (courtesy of the investment), giving them a long leash to continue investing in growth
9. On the whole, gross margins looked terrible, but that was because of an inventory write-down that wasn't a cash expense. The U.S. market actually had 27% gross margins on its own
10. Right now trades at an EV of about $650 million, with an EV/sales of 20. So a lot of growth is still priced in, but not as much as the absurd times of 2018-2019
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Quick aside: if you want to hear the author talk about the essay at length (and definitely do a better job of explaining it than I ever could), listen to his appearance on Invest Like the Best
$SFIX 10-K out recently. Some interesting tidbits I found:
- Stitch Fix is less than 10 years old and only available in the U.S. and U.K.
- First new product outside of Fixes (Direct Buy) is barely one year old
- "We believe that an intelligent combination of data science and human judgment is required to deliver the personalized retail experience that consumers seek."
- The specific term "data science" is mentioned 25 times in the 10-k
A thread of companies that spent more on capex than in 2019:
(reminder, Tesla is supposedly currently disrupting the entire auto market, semitruck market, lithium battery market, solar market, and is the leader in FSD)
For reference, spent $1.33 billion on Capex in 2019 (via @stockrow1)
1. Ford
Ford spent $7.6 billion on capex in 2019. They are a direct competitor to Tesla