Thursday, February 24, 2022

Stem Holdings (STMH)(STEM:CA)
Fiscal First Quarter 2022 Results

Stem Holdings Inc is engaged in the purchasing, improving, and leasing of properties and finance assets which are operated by third parties and are used for the cultivation and retail sale of marijuana. Its properties includes 42nd Street, and Mulino Farm which are used for agriculture. The company generates its revenue in the form of rental income from tenants.

Joe Gomes, Senior Research Analyst, Noble Capital Markets, Inc.

Joshua Zoepfel, Research Associate, Noble Capital Markets, Inc.

Refer to the full report for the price target, fundamental analysis, and rating.

1QFY22 Results. Stem reported net revenue of revenue of $4.2 million compared to $5.3 million last year. The sales decline reflects a decrease in sales resulting from general market conditions. Stem reported a net loss of $4.1 million, or $0.02 per share, for the quarter, including $795,000 of non-cash impairment charges, a $1.75 million loss from discontinued operations, and a $1.7 million gain from the change in the fair value of warrant liability. In 1Q21, Stem recorded a net loss of $3.2 million, or $0.05 per share. Outstanding shares increased to 230.2 million from 69.7 million.


What’s Next? Interim CEO Hubbard continues to work through putting the Stem house in order, in our opinion, with an ultimate goal of focusing on just the California and Oregon businesses.  Ultimately, we believe Stem either needs to get bigger, which would require additional capital, or sell to a larger entity. Which way the Company will go is uncertain at this time, but we believe Stem does have …

This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).

*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary.  Proper due diligence is required before making any investment decision.