MSO and LP Stock-Based Comp Analysis

As I work my way through analyzing the cannabis industry, I wanted to know how much the "Big 5" MSOs and LPs have been paying out to employees/management in the form of stock-based compensation. In line with what I expected, the LPs have been significantly larger issuers of stock-based compensation than the MSOs. Dialing into … Continue reading MSO and LP Stock-Based Comp Analysis

Backtesting Short Seller Ben Axler’s Performance at Spruce Point Capital (Part 2)

As a quick follow up to Part 1 of Backtesting Short Seller Ben Axler’s Performance at Spruce Point Capital, I analyzed total open interest on all put options for Ben Axler's respective short reports. I looked at the median % change for total put options starting 20 trading days out from the release of the … Continue reading Backtesting Short Seller Ben Axler’s Performance at Spruce Point Capital (Part 2)

The Significance of Accruals and the MSOs

Summary Due to adjustments in fair value of inventory and biological assets, I am wary of potential earnings management/manipulation.Using traditional methods to measure cash flow and balance sheet accruals, during Q2'20 Trulieve measured with the highest earnings quality, but otherwise reported the worst earnings quality in FY'19.Curaleaf reported the lowest earnings quality relative to the … Continue reading The Significance of Accruals and the MSOs

Backtesting Short Seller Ben Axler’s Performance at Spruce Point Capital (Part 1)

Summary Background I have always been in the camp that if a company is committing fraud, then I would like to know about it. About a year ago, Grizzly Research, now known to be ran by Siegfried Eggert, put out a report called Trulieve Cannabis Corp: Why we believe the Company is a Fraud. At … Continue reading Backtesting Short Seller Ben Axler’s Performance at Spruce Point Capital (Part 1)

Potential mispricing between MSO Warrants and LP Call Options

Call Options & Warrants @CCINVEST2 on Twitter made me wonder - are warrants for the MSOs appropriately priced? https://twitter.com/ccinvest2/status/1321121450615603200?s=20 I started by taking a step back and looking at 2022 LEAPS for a few of the U.S. listed LPs. In line with what I expected, call options expiring in 2022 imply breakeven prices that trade … Continue reading Potential mispricing between MSO Warrants and LP Call Options