MedMen Co-Founder Buys Extravagant L.A. Mansion


I’ve acquired some excellent news or dangerous information for you relying on the place you’re at with cannabis shares proper now.
In case you’ve taken the Seed Investor’s warning and stored some powder dry for a Summer time Droop, it will likely be excellent news.
In case you maintain shares in one of many largest U.S. cannabis retailers, it might be dangerous information.
As a result of all of it might play an enormous function in the place MedMen (CA:MMEN / US:MMNFF) shares go from right here within the brief run.
This summer season has been a tricky one for a lot of cannabis firms.
Few have had it harder than MedMen.
The corporate fired its CFO, needed to increase extra capital, and the corporate has put itself in a dangerous place wherein it might go both manner at this level.
MedMen share efficiency has mirrored all that uncertainty too.
As soon as we embrace a current bounce in worth, MedMen shares are down 64% since peaking final October.
They’ve even underperformed the North American Marijuana Inventory Index has fallen 33% over the identical time interval.
However the hangover from that massive run-up in cannabis shares hasn’t stopped one in every of its executives from dwelling it up.
Selection reported yesterday that Marijuana Magnate Andrew Modlin Snags $11 Million Hollywood Hills Mansion.
Modlin is a co-founder and present president of MedMen Enterprises.
The house is of course a magnificence, however that’s not the purpose.
Even a softball superstar rag like Selection is compelled to confess, “Although [MedMen] inventory has taken a beating since [it’s IPO], igniting debate over future viability, the agency stays among the many most well-known and profitable of its variety.”
Selection shouldn’t be a business-focused paper, so we received’t hammer it for equating fame with success.
Nonetheless, this ill-timed buy from a outstanding MedMen govt raises loads of questions in regards to the firm.
Shareholders could also be prepared to stay it out with MedMen and hope the corporate’s model and trade place will assist it climate this stormy interval.
But when a couple of main shareholders take this information the fallacious manner, look out beneath. They may simply promote out and stroll away.
Given the timing of all this, any massive promoting would might crush MedMen shares.
The “Summer time Droop” in cannabis shares is in full swing and even the slightest little bit of promoting strain can ship these thinly traded shares down massive rapidly.
That’s why we don’t know if this can be a good or a foul factor for you now.
We all know that retail is the way forward for the cannabis trade and retail cannabis shares are priced to carry out within the months and years forward.
So, it’s good if we get an opportunity to purchase a premier cannabis retailer on a budget if this little bit of extravagance is seen poorly by a pair main MedMen shareholders. And it’s a foul factor in case you are an enormous holder of MedMen as a result of there might be much more ache earlier than the subsequent spherical of beneficial properties.


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