HITI DD: The Costco of Cannabis

Hey, last week I made a [TLRY DD](https://www.reddit.com/r/weedstocks/comments/1q5ibdx/tlry_dd_why_im_waiting_for_7_entry/) and it garnered some interest (didn’t know it’s hated this much here lmao), so I decided to make a new one for this week, this time focused on High Tide Inc. (HITI). I used the same tool as last week to ingest SEC filings, industry reports, market data, etc. to build a full report. Here are the main takeaways: * **The Moat:** They’ve pivoted to a Costco-style discount-club model. \~90% of their in-store sales now come from members. They have \~2.4 million Cabana Club members and a rapidly growing paid ELITE tier (139k+ members). This drives repeat traffic that most Canadian retailers can only dream of. * **The Financials:** Unlike many peers, HITI is actually free cash flow positive (C$21.8M over the last five quarters). Revenue is hitting a \~C$600M run rate. However, the “margin of safety” is earnings-based, not asset-based — if same-store sales (SSS) stall, the balance sheet doesn’t have a huge cushion. * **The German Wildcard:** The Remexian acquisition is a potential game-changer. They just bought \~16% of the German flower import market. If they maintain those \~20%+ margins, it adds €15M+ in EBITDA. If German regulations tighten on telemedicine or mail-order, it’s a potential drag. * **My Judgment (**not investment advice**):** The current price levels look extremely attractive. I’m waiting for a "fat pitch" entry closer to $2.40 if the market gets jittery before the Jan 29 earnings release. I need to see if that 7.4% SSS growth is sustainable before I go all-in. Full DD report here: [HITI](https://app.deepvalue.tech/report-share/HvOf5vyGHXUM) What’s your opinion? Better than TLRY?