WM Technology posted dismal results for the 3Q of 2021.
The company has a promising cannabis marketplace and SaaS business too, focused on the California market impacted by illicit sales.
The stock is appealing at $8 due to long-term 30% growth rates, but investors should watch from the sidelines until the stock and business stabilize.
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The U.S. cannabis space has had a very tough few months and WM Technology (MAPS) now leads the pack with disappointing shareholders. The company was surprisingly hit by reduced demand in California due to a surge in the illicit market. My investment thesis remains Bullish on the stock over the long term, but WM Technology needs to find a bottom before shareholders buy more shares.
Aurora Cannabis was left out of the major deal making in 2018. The cannabis company updated FQ2 guidance to revenues of $50 to $55 million with a continued focus on pure production growth. The stock is down as the market is becoming less impressed with commodity farming operations due to the prime Oregon example. The stock is below key resistance at $5.40 as medical cannabis patient totals failed to impress. As the end of 2018 came and went, Aurora Cannabis ( ACB ) was a notable absentee from the deal making in the cannabis market. Just about all of the other major Canadian cannabis players got large investments or signed up powerful partnerships, but the related stocks didn't generally maintain rallies following the deals. Based on the early legalization data in Canada and Oregon, the best option for Aurora Cannabis might actually be selling production capacity while the Canadian market remains hot. Read the full article on Seeking Alpha. Disclosure: No
Wolfpack Research released a short report on Skillz. The recently closed SPAC deal was irrationally priced in the stock market with the market cap soaring above $20 billion at the highs. The company must maintain 2021 revenue targets of $366 million despite the headwinds in mobile gaming. Investors must avoid this stock due to valuation and especially if Wolfpack Research is accurate on the upcoming revenue misses. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » The upcoming Skillz ( SKLZ ) earnings report is important for not only the stock, but also the cooling SPAC space. A lot of the blank-check companies have made business combinations based on aggressive 2025+ revenue targets, yet very few of these companies have reported earnings since going public. The real-money gaming platform was already an extremely expensive stock before Wolfpack Research hit the stock with a report suggesting the revenue targets
Velodyne Lidar reported a solid Q1 earnings report, but the company disappointed with the 2021 guidance. The company still expects sales to accelerate once Covid restrictions are lifted in areas like Europe and Asia. The stock is cheap with a $2 billion valuation and 29 multi-year agreements already in place. This idea was discussed in more depth with members of my private investing community, Out Fox The Street. Learn More » The biggest issue when the lidar sensor companies came public via SPACs was whether the market could handle the unpredictable nature of the development phase in the space. Velodyne Lidar ( VLDR ) continues to add multi-year agreements and expand the pipeline, but the stock has fallen due to disappointing quarterly results. My investment thesis remains bullish on the stock and the sector. Read the full article on Seeking Alpha. Disclosure: No position mentioned. Please review the disclaimer page for more details. Update - July 19 The CEO steps down, but the