Village Farms Blue Light Special

VFFIF or VFF.TO on sale today. Not likely to be on sale long.

My calculations are this is a 40 dollar a share stock, barring political set backs or significant dilution.

Cheers
Qazulight

1 Like

I’m along for the ride as well, with Emhtf, mjx and hmlsf. Greatly increased my holdings in Village Farms since Nov. Jeff Sessions is a problem though.

1 Like

There is a significant political risk with Village Farms.

May I add CBWTF to the village farms conversation. If you remember SONNYPAGE and his Silver Wheaton puck you may like CBWTF as it uses the same model of investing.

1 Like

We are talking the Canadian tomato grower that uses huge greenhouses? Are the comments on politics and Jeff Sessions just a joke?

I don’t get it. Or is it about marijuana? Village Farms is better know for their tomatoes (I drive past their greenhouses in Vancouver all the time), but then I read this:

On September 14, 2017, the application for a “second site” cultivation license under the ACMPR for the Delta 3 greenhouse was submitted to Health Canada and the application was subsequently accepted for review by Health Canada on September 18, 2017. Subsequent to acceptance of the application, Pure Sunfarms commenced physical conversion of the 1.1 million square foot greenhouse facility in Delta, British Columbia and expects to complete conversion of the first 250,000 square foot quadrant in February 2018 such that, subject to the receipt of cultivation and sales licenses from Health Canada, it expects to begin selling dried cannabis on or before July 2018 and to have all four quadrants commercially producing in the fourth quarter of 2019. Pure Sunfarms conservatively forecasts annual production from the initial 1.1 million square foot greenhouse in Delta to be a minimum of 75,000 kg of dried cannabis, which it expects to achieve in 2020, and a cost of production (including depreciation) at full production of less than $1.00 per gram.

Hmm - it looks interesting.

1 Like

HiTech,
This might help.

http://www.seekingalpha.com/article/4141028

1 Like

Thanks. Interesting. I guess access to the US market is going to be a driver if they get it, and an anchor if they don’t.

What I found interesting was their prediction to produce at a cost of $1 per gram. I’ve been following the legalization here in Canada, and what I’ve found interesting is that most of these companies that have seen wild increases in their valuation don’t actually have a good grip on what it costs them, versus what they can sell it for.

An established company like this might have a better experiential-toolbox to be able to keep costs low.

What I didn’t like was their earnings, which have been going the wrong way over the last 4 years.

1 Like

You are betting on their experience in the farming area, their greenhouses and getting the necessary permit to grow pot. If it comes through, their revenue will jump through the roof, and their costs should not be increased much.

1 Like

Are the comments on politics and Jeff Sessions just a joke?

I don’t get it. Or is it about marijuana? Village Farms is better know for their tomatoes (I drive past their greenhouses in Vancouver all the time), but then I read this:

On September 14, 2017, the application for a “second site” cultivation license under the ACMPR for the Delta 3 greenhouse was submitted to Health Canada and the application was subsequently accepted for review by Health Canada on September 18, 2017. Subsequent to acceptance of the application, Pure Sunfarms commenced physical conversion of the 1.1 million square foot greenhouse facility in Delta, British Columbia and expects to complete conversion of the first 250,000 square foot quadrant in February 2018 such that, subject to the receipt of cultivation and sales licenses from Health Canada, it expects to begin selling dried cannabis on or before July 2018 and to have all four quadrants commercially producing in the fourth quarter of 2019. Pure Sunfarms conservatively forecasts annual production from the initial 1.1 million square foot greenhouse in Delta to be a minimum of 75,000 kg of dried cannabis, which it expects to achieve in 2020, and a cost of production (including depreciation) at full production of less than $1.00 per gram.

Hmm - it looks interesting.

No Mr. Sessions is not a joke. Village Farms has an extensive green house operation in West Texas and is listed on the OTC in the United States. If Mr. Sessions were to try he could accuse Village Farms of moving narcotics into and out of the United States and freeze all banking assets and sieze the Texas Green houses essentially shutting down the legacy vegatable business.

However, as the U.S. is in a period of political change, this scenario is not the most likely one. In fact I expect that by this time next year, with just a very few changes in congress, we could see a significant change in a lot of the policies coming from the White House with no change in the administration.

My analysis could be very very wrong, and I don’t turn off elections anymore, but still it is my operating belief at this time.

Cheers
Qazulight

1 Like

What I didn’t like was their earnings, which have been going the wrong way over the last 4 years.

Village Farms lost couple of green houses in West Texas to a tornado, then they had a significant legal battle with the insurance company. They rebuilt one of the green houses and not another.

They have also seen new and tough competition in the U.S. from Mexico.

On the other hand they signed a contract for energy from a fuel cell company in Vancouver, and they are the leader in commercial hydroponic growing. While some of their technology is dated, they also are pursuing advanced led grow light tech and a lot of that is being applied in the Cannibus grow houses.

I originally bought this company at 98 cents a share as a hedge against climate change as they can produce year around in the desert in a high density enviroment with little water.

Since then we have had extensive advances in solar panels, battery storage, and led lights. They have the tech to become a major low cost producer of vegetables.

However there is a growing (ok ok, I couldn’t pass up the pun) challenger from the Leafy Green Machine.

https://www.freightfarms.com/product/#lgm-2017

I have been disappointed that Freight Farms has not developed a product for vine grown vegatables and fruit. They have been working on it but not deployed anything that I have seen.

Also, Freight Farms has avoided the Cannibus business in the states where it is legal, I think there are some others with simular products but I have not been able to keep track of them.

Cheers
Qazulight

Yes, it’s a bit like gambling. I took a nasty hit with CMG the other day. With the need for pot companies requiring hydroponics and all the other growing accessories felt this was a safe bet for the future, still could be but shows you that there is a long way to go…

https://marketrealist.com/2018/01/scotts-miracle-gro-company…

https://seekingalpha.com/article/4143129-like-marijuana-post…

1 Like