Stockchase Opinions

Brian Madden Fire & Flower Holdings FAF-T DON'T BUY Jan 11, 2022

Chain of cannabis dispensaries, solely in Canada. Deep pockets, due to investment from ATD, which taps into smart management but caps potential. You want to own the integrated operators that go from seed to store. He owns CURLF instead.
$5.050

Stock price when the opinion was issued

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BUY
Cannabis retail is a good area--BC and ON underserved, so there are opportunities. Alberta is getting more stores. He likes FAF.
COMMENT

He isn't in cannabis, because these companies can't build a strong moat or distinguish themselves from their peers. FAF has teamed up with ATD'B, which is a great alliance for both companies. He owns ATD'B, but doesn't know that much about FAF.

WATCH

They're in retail. Have a deal with ATD'B to take a bigger ownership position. Investors have forgotten about the retailers, which is a fragmented but strong business. FF has buying power. He used to own this, but is watching this. He expects the weed sector to revive. Expects ATD'B to take this over eventually.

BUY
Owns indirectly through ATD.B having a strategic stake in it. That endorsement is good enough for him. Have the scale and sophistication to put down a good beachhead in the last mile of distribution in Canada. Prospects look pretty good.