Thoughts on Supreme Cannabis (FIRE)

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I am new to the world of stock markets. I did my own research and found this company Supreme Cannabis (FIRE). FIRE has struggled in the past, but the new CEO managed to reverse the company’s negative situation, so I decided to jump into the adventure. I believe that this share is undervalued and despite the latest encouraging financial results, the price remains low. Could I have your opinion on this company and the reasons why the price remains low? I currently own 23,000 shares of FIRE @ 0.305.
Thank you

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Asked on February 27, 2021 4:03 pm
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Hey there. I'm somewhat numb to cannabis turnaround plays and stories. This is primarily because there have been so many of them over the years that have failed to come to fruition.

This was also a company that was bloated in price due to the WallStreetBet attack on cannabis companies. You'll see an industry wide surge in prices followed by a collapse. This is why Supreme is down nearly 50% from highs not even 20 days ago.

Interestingly enough, this is the largest shorted stock on the TSX index. In fact, nearly 15% of its total shares outstanding are sold short.

In my eyes, much like other cannabis companies, this company is way too all over the place for my liking. And it really doesn't separate itself from the pack. You've got companies like Canopy Growth and Hexo having huge backers like Constellation and Molson Coors, while FIRE doesn't really have much.

But, analysts do have some decent price targets on the company, ranging from $0.41 to $0.50. And, there is always a chance these stocks get boosted again by some external event such as the WallStreetBets saga.

So, short term you may be looking at some upside here, but long term I'm not sure I'm a fan of FIRE. But keep in mind, I'm not a fan of any cannabis company really.

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Posted by Dan Kent
Answered on February 28, 2021 10:25 am